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2024 HECM Limit Increased: Here’s why

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FHA has announced that the HECM limit will be increased effective January 1st, 2024. The new HECM limit or the maximum home value that may be considered in the federally-insured reverse mortgage is $1,149,825. This applies to traditional HECMs, HECM-to-HECM refinances, and purchase transactions with case numbers assigned in the calendar year 2024. This effectively increases the HECM limit by $60,525 higher than 2023’s limit.

 

So how is the HECM limit calculated? The HECM limit is one-and-a-half times or 150% of the Federal Housing Finance Agency’s annual conforming limit. The conforming loan limit is the maximum dollar amount of a mortgage that Freddie Mac or Fannie Mae is willing to purchase or guarantee. Since the 2024 conforming limit is…

 

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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2 Comments

  1. Excellent description of the workings of how the maximum lending limit for the HECM is created by FHA.


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