Seniors with pricier homes now have an increased ability to get a jumbo reverse mortgage in order to raise cash for retiremen...Read more
Higher Loan Limits Lift Ceiling on Reverse Mortgages
- January 20th, 2006
New federal loan limits mean that older Americans may be able to get more out of the equity in their home through a reverse mortgage. If you own a home and are at least 62 years old, you may be able to get a reverse mortgage on your home. A reverse mortgage permits house-rich but cash-poor elders to use their housing equity to, for example, pay for home care while they remain in the home, or for nursing home care later on.
The amount of money you can borrow under a reverse mortgage depends on your age, the current interest rate and other loan fees, the value of your house, and the mortgage limits for your area set by the Federal Housing Administration. At the beginning of the year, the FHA raised mortgage limits in many parts of the country. The loan limit for homes in high-priced areas has increased from $312,896 to $362,790 while the lowest loan limit has increased from $172,632 to $200,160. To find the limit in your area, click here.
Homeowners can get the money in one of three ways (or in any combination of the three): in a lump sum, as a line of credit that can be drawn on at the borrower's option, or in a series of regular payments, called a 'reverse annuity mortgage.'
For more on reverse mortgages, click here.
Local Elder Law Attorneys in Ashburn, VA
Margaret A. O'Reilly, PC
Margaret A. O’Reilly is an estate planning and elder law attorney with over thirty-five years of legal experience. Attorney O’Reilly graduated from Duke University with a degree in psychology, and received her law degree from Northeastern University School of Law in Boston, Massachusetts. For over 15 y...
Law Offices of John L. Laster
John Laster is a lawyer licensed to practice in Virginia, Maryland and the District of Columbia. He limits his practice to wealth transfer planning, trusts, wills, powers of attorney, health care decision-making issues, estate administration and related tax, elder law and disability concerns. Listed in The Best Lawyers...
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...