HUD increases lending limits nationwide for reverse mortgages.

If you have been shopping for a reverse mortgage only to find that you don’t have enough equity or that your balance on your existing mortgage is too high, there is relief on the way.  As of a press release from the Department of Housing and Urban Development (HUD) dated October 3rd 2008, the lending limit has been increased nationally to $417,000.  Previously, the limits were based on the county lending limits as established by FHA for the HECM (Home Equity Conversion Mortgage), FHA’s proprietary reverse mortgage program, and the most popular on the market.

With this important change in guidelines, the number of people who qualify for reverse mortgages has increased substantially.  This is especially important as the number of seniors relying on social security for retirement continues to rise, while over 50% of seniors age 65 or older own their homes free and clear.

If you are not familiar with reverse mortgages, check out What You Should Know About a Reverse Mortgage.