Mortgagee Letter 2009-07 Raises Limits to $625,500

HUD has issued a new Mortgagee Letter addressing loan limits for reverse mortgages. Mortgagee Letter 2009-07, officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the remainder of this year. The new limit took effect on February 24, 2009.

According to the Mortgagee Letter, HUD will allow any loan with a case number assigned prior to the publication of ML 2009-07 to close at either $417,000 or $625,500 until April 30th, 2009.

Loan limits for the special exception areas of Alaska, Hawaii, Guam and the Virgin Islands have a potential higher ceiling in 2009 of $1,094,625 (1 unit), $1,401,300 (2 unit), $1,693,875 (3 unit), $$2,105,100 (4 unit). At the present time no counties in these areas qualify for limits above the national ceiling od $729,750.