Reverse
Mortgage Limits
Reverse mortgage principal limit factors refer to the formula used by the Department of Housing and Urban Development (HUD) to calculate the maximum loan amount that an individual can borrower with a  Home Equity Conversion Mortgage (HECM) reverse mortgage.
Reverse mortgage principal limit factors refer to the formula used by the Federal Housing Administration (FHA) to determine the maximum amount that can be borrowed through a Home Equity Conversion Mortgage (HECM) reverse mortgage. The principal limit factor is based on the age of the youngest borrower or eligible non-borrowing spouse, the expected interest rate, and the value of the home.
The principal limit factor is updated annually and can vary depending on changes in interest rates and home values. It is important to note that the principal limit factor is only one factor in determining the eligibility and amount of a reverse mortgage, and borrowers must also meet other criteria, such as age and equity requirements, to qualify for a reverse mortgage.
2023 Reverse Mortgage Principal Limits
| Age of Borrower | Principal Limit | Loan amount Limit |
|---|---|---|
| 62 | 40.3% | $1,089,300 |
| 65 | 42.3% | $1,089,300 |
| 70 | 45.8% | $1,089,300 |
| 75 | 48.6% | $1,089,300 |
| 80 | 52.8% | $1,089,300 |
| 85 | 58.5% | $1,089,300 |
| 90 | 64.9% | $1,089,300 |
