The Principal Limit is calculated on the age of the youngest borrower, the appraised value of the subject property or the FHA limit (whichever is less) and the current expected interest rate. The current limit for FHA HECM loans is $417,00 nation wide.
For the adjustable rate, the principal limit can be locked in at time of application. The principal limit lock is valid for 120 days from the date the FHA Case Number is assigned. It allows the borrower to receive the principal limit at the time of application or the principal limit at closing, whichever is greater. Fixed rate loans are not locked in until closing.
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- Sandra Wiley
- I have been teaching financial classes about reverse mortgages for over eight years. It is a passion I have, knowing that I can make seniors lives better by showing them a loan that can change their lives. Whether it is to buy food and medicine, seek medical care or travel to Europe with their grandchildren, a reverse mortgage can open the door to financial independence for seniors in America. I am dedicated to helping those seniors learn all they can about this product so that they can determine whether or not it is the answer for them.
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