FHA Increases HECM Loan Limit
The maximum claim amount for FHA-insured Home Equity Conversion Mortgages has been increased from its current $625,500 limit to $636,150, according to Mortgagee Letter 2016-19 published by the Department of Housing and Urban Development.
This new MCA – which is equal to 150 percent of the Freddie Mac national conforming limit of $424,100 – becomes effective for case numbers assigned on or after January 1, 2017 and will last through December 31, 2017. The $636,150 limit also applies to the Freddie Mac high-cost exception areas, which include Alaska, Hawaii, Guam and the Virgin Islands.
The ARS rate calculator has been adjusted so clients can quote up to the new HECM loan limit before being notified that Jumbo fees are needed.