Types of Reverse Mortgage loan plans

 

The HECM is an FHA insured plan, which allows the lender to loan a higher percentage of the value of the home. The maximum home value varies by county based on median values, and the nationwide maximum in the 48 states is currently $362,790.

 

However, pending legislation will mean big changes for many borrowers—including raising the maximum to $417,000 nationwide… allowing a HECM to be used for purchase… and allowing a HECM on a co-op (currently allowed only in New York).

 

The HECM maximum value makes it less than ideal for higher value homes and there are a number of plans available that have much higher limits. These plans are sometimes referred to as “jumbos”.

 

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