Are you looking for ways to enjoy your retirement years? opens in a new windowHUD just raised the reverse mortgage loan limits to over $1 million dollars in 2023! That means more money for you and your family. This is a great opportunity for you to get more money out of your home so you can live comfortably in retirement. Don’t wait, interest rates are going up, so now is the time to look into a reverse mortgage. In this article, I will share the top reasons why you need to consider a reverse mortgage and how you can get started today.
The HECM reverse mortgage loan limit for 2023 is $1,089,300. This is the largest increase from the previous year yet. This is great news for seniors who are looking for more money to help them during retirement and do not want to move or sell their existing homes.
Key Takeaways
- In January 2023, FHA & opens in a new windowHUDopens pdf file raised HECM (home equity conversion mortgage) Reverse mortgage loan limit or the maximum claim amount to $1,089,300.
- A reverse mortgage net limit is the total amount of money that a borrower receives from a reverse mortgage loan after subtracting any costs and fees associated with the loan.
- The new reverse mortgage lending limit increased from 2022 by $118,500. This is one of the largest increases in loan limits ever.
Latest in Reverse mortgage loan limits

In January 2023, FHA & opens in a new windowHUDopens pdf file raised HECM (home equity conversion mortgage) Reverse mortgage loan limit or the maximum claim amount to $1,089,300. It is determined by the appraised value of your home. This is great news for seniors who are looking to take out a Reverse mortgage loan, as the increased limit will provide more financial security in their later years. The new reverse mortgage lending limit increased from 2022 by $118,500. This is one of the largest increases in loan limits ever. Since HECM is a government-backed loan, it gives seniors the confidence that their loan will be insured by the FHA (Federal Housing Administration), no matter what.
History of HECM reverse mortgage lending limits
Prior to 2018, the reverse mortgage loan limit was unchanged for many years. Since 2018, the limit has been increased every year to accommodate for the increase in home prices. This provides seniors with the opportunity to borrow more money as their home values continue to go up.
The Reverse mortgage loan limit in 2020 was $822,375, and in 2021 it increased to $868,625. With the new Reverse mortgage lending limit of $1,089,300 in 2023, seniors will have even more access to cash from their homes.
Keep in mind that the amount of loan you can take out depends on your age. Generally, the older you are, the more money you can borrow.
What Can You Do With a Reverse Mortgage Loan?

With a reverse mortgage loan, you have the flexibility to use the money however you want. It is important to note that you are never required to take out all of the money at once and you can access it as needed. Seniors can use Reverse mortgage loan proceeds for a variety of purposes, such as:
Reverse mortgage Eligibility?
To be eligible for a HECM (Home equity conversion mortgage), you must be at least 62 years old and have significant equity in your house. You also cannot be behind on any federal debt, such as your mortgage, taxes, or insurance. Please contact me right away if you meet the above criteria and want to learn more about it. We
The benefits of a reverse mortgage
One of the biggest benefits of a Reverse mortgage loan is that it allows seniors to age in place. This means that they can continue to live in their homes without worrying about making monthly mortgage payments. In addition, Reverse mortgage loans are a great way to supplement your retirement income. With the money from your Reverse mortgage, you can enjoy life more and not have to worry about running out of money.
Reverse Mortgage Benefits Summary
- Allows seniors to age in place
- Supplement retirement income
- Can be used for a variety of purposes
- No monthly mortgage payments
Increased borrowing limits will give seniors more flexibility

With the largest increase in loan limit yet, this gives seniors more access to cash from their homes. Seniors can use this additional cash for anything they please, such as supplementing their retirement income, taking dream vacations, or even buying a new home. This is more important now since inflation and reverse mortgage interest rates are on the rise. Everyday goods and services are also going up in price, you don’t want to wait too long to get a Reverse mortgage.
Take advantage of Low-interest rates
The US Federal has already announced a series of interest rate hikes that will affect mortgage rates. It is important that borrowers lock in a Reverse mortgage at today’s low rates, as they are only going to go up from here. In addition, opens in a new windowhigher interest rates usually negatively impact home prices, so people interested in a reverse mortgage should act fast.
You Should Refinance?
If you had a reverse mortgage before and haven’t refinanced, now may be a good time to consider opens in a new windowrefinancing. You may be able to unlock additional equity from your home and lower the interest rate of your original reverse mortgage loans. This will provide you with more money to use now and in the future.
Frequently Asked Questions
Will mortgage rates go up in 2023?
This is likely given the current marketing condition and the US Federal announcement that they will be doing a series of interest rate increases in the near future. This will most likely have an impact on mortgage rates or reverse mortgage interest rates going up.
Do I need to take out a Jumbo reverse mortgage?
With a huge increase in loan limit in 2023, some seniors might not need to take out a opens in a new window jumbo reverse mortgage loan. The key benefit of a HECM loan is that it’s backed by the government and generally has lower fees than a proprietary reverse mortgage loan.
What is an MCA (Maximum claim amount)?
The maximum claim amount is the maximum amount that a Reverse mortgage borrower can receive from the lender. The actual loan proceeds you receive depend on your age and the appraised value of your property. This FHA (Federal Housing Administration) Reverse mortgage limit changes each year.
What is a reverse mortgage net principal limit?
A reverse mortgage net limit is the total amount of money that a borrower receives from a reverse mortgage loan after subtracting any costs and fees associated with the loan. The net principal limit is usually higher than the reverse mortgage’s initial principal limit. The maximum amount one could obtain in the first year.
How is the maximum claim amount calculated?
The maximum claim amount is calculated by multiplying the Reverse mortgage principal limit by the mortgage insurance premium percentage. This will give you the maximum claim amount.
What is the most popular type of reverse mortgage?
Home Equity Conversion Mortgages (HECMs) are the most popular type of Reverse mortgage. This is because they are insured by the federal government and offer more benefits than proprietary Reverse mortgages.
Do you need to be responsible for the upfront mortgage insurance premium?
Yes, one of the requirements of getting a HECM reverse mortgage is that you pay the upfront mortgage insurance premium. This is a one-time fee that allows you to borrow up to the maximum claim amount.
What is a reverse mortgage interest rate?
The interest rates on reverse mortgages are not fixed, and the average rate is subject to change over the course of the loan’s lifetime. There was a range of 4.81% to 5.18% for the HECM interest rate as of April 2022. The interest rates ranged anywhere from 5.49% to 6.50% for jumbo reverse mortgages, which are larger reverse mortgages.
The Bottom Line
The Reverse mortgage loan limit increase in 2023 is great news for seniors who are looking to tap into their home equity. With this increase, they will have more access to cash that can be used for a variety of purposes. In addition, with rates on the rise, it’s important to act fast and take advantage of today’s low rates. Don’t wait, Reverse mortgage loans are a great way to supplement your retirement income and pay off all kinds of expenses. Contact me today for a free reverse mortgage consultation.