The Department of Housing and Urban Development (HUD) announced on Wednesday, December 2, 2020 via Mortgagee Letter (ML) 2020-42
a maximum claim amount of $822,375 for calendar year 2021, a rise of $56,775 from the $765,600 limit governing the Home Equity Conversion Mortgage (HECM) program in 2020.
What does this mean for borrowers? For folks with a home value over $765,600, this higher maximum claim may result in higher principal limits (or how much money you can borrow).
For those who already have a HECM, this increase could make refinancing an existing HECM into a new HECM more desirable.
This is the reverse mortgage blog of Marina Watts, a reverse mortgage specialist licensed in California and based in Santa Cruz, California.
Marina Watts, NMLS # 1458297