The Federal Housing Administration is keeping reverse mortgage loan limits unchanged through 2015, with max claim amounts currently capped at $625,500, the agency announced Friday.

“The FHA reverse-mortgage product, known as the Home Equity Conversion Mortgage (HECM), will continue to have a maximum claim amount of $625,500, with actual loan limits based on property value, borrower age, and current interest rates,” FHA wrote in its announcement.

Loan limits for Home Equity Conversion Mortgages have been elevated for several years [1], with the heightened $625,500 max claim limit applying at 150% of the national conforming loan limit of $417,000.

The agency specified the extension of the current loan limits as well as new loan limits for forward mortgages in Mortgagee Letter 2014-25 [2] that will be in effect for case numbers assigned from Jan. 1, 2015 through Dec. 31, 2015.

FHA has set “floors” and “ceilings” for forward loan amounts depending on region and whether an area is deemed “high cost” or “low cost.”

For forward loans, FHA specifies: “The minimum FHA national loan limit “floor” is at 65 percent of the national conforming loan limit (which is $417,000 for a one unit property for the period January 1, 2015 through December 31, 2015). The “floor” applies to those areas where 115 percent of the median home price is less than 65 percent of the national conforming loan limit.”

The Federal Housing Finance Agency released its loan limits for 2015 [3] in late November, specifying that only some higher-cost areas will see higher FHFA loan limits next year.

View Mortgagee Letter 2014-25 [2].

Written by Elizabeth Ecker

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

URLs in this post:

[1] elevated for several years:

[2] Mortgagee Letter 2014-25:

[3] loan limits for 2015: