Effective in January 2024 the HUD Lending Limit will increase nationally to $1,149,825. Without going into detail about how and why the federal agency does this, it is important to know future borrowers for reverse loans will have more of their equity available to them than in 2023.
The amount of a new reverse mortgage is calculated on the appraised value of a home and the HUD Lending Limit, whichever is less. Here in California, we have many high value homes and some older homeowners are still paying a mortgage payment and would like to use a reverse loan, refinance the existing loan and eliminate mortgage payments.
They may have previously attempted to refinance, but due to the lower HUD Lending Limit VS the appraised value of their home, it couldn't be done at that time, but it might be worth looking at a reverse loan next January, for two reasons.
Property values have increased and the HUD Lending Limit will, too.
