Yes, They Did! $625,500 Reverse Mortgage Limit Extended Through End of 2010!
Have you ever sat on pins and needles? Neither have I. But I think I’ve got an idea just how it feels. Those of us who work with senior homeowners and offer Reverse Mortgages advocate for borrowers who wish to take advantage of good Reverse Mortgage programs, especially when it presents itself as their best option.
For months we waited with baited breath for word from Congress to be announced– when it was feared the current increased loan limit might return back to $417,000, the previous loan limit. Friends, we were not disappointed. Congress announced that on October 29th they passed an extension of the current Reverse Mortgage loan limit through December 31, 2010. Every Reverse Mortgage Specialist is rejoicing that senior homeowners can continue to take advantage of this limit.
Many seniors owe substantial balances on their homes and where the equity in their home is adequate to do a Reverse Mortgage, the higher lending limit will prove to be a Godsend to them.
Additionally, high value homes require the higher lending limit for the program to work for them, and seniors have been taking advantage of the HECM loan limit of $625,500 for refinances and purchasing a home with a Reverse. The program would have lost its appeal were it returned to the previous limit of $417,000. Congress, thanks. We appreciate it.
President Obama will sign the Congressional Resolution, signing it into law through December 31, 2010. It would be tough to see that limit get reduced end of next year, but we’ll cross that bridge when we come to it!
Source:“The House and Senate moved quickly to pass an extension of the $729,750 GSE (Government Subsidized Entity) loan limit through the end of 2010, hoping to avoid any potential disruption in the mortgage market. Both chambers cleared the loan limit extension late Thursday as part of a continuing funding resolution. President Obama is expected to sign the continuing resolution (CR) shortly.. . . The CR also extends the nationwide $625,500 loan limit for FHA-insured reverse mortgages through December 2010. “Given the lack of a private secondary mortgage market, FHA, Fannie Mae and Freddie Mac are pretty much the only game in town,” said Robert Story, chairman of the Mortgage Bankers Association. “Extending the current loan limits, along with other initiatives will help restore stability to the housing and mortgage markets. . . ”
National Mortgage News-October 30, 2009
Kathie Adler - Reverse Mortgage Blog 
Oh! This is great! Thank you for putting to rest many
misconceptions I had read about this recently.
home loan Orlando
March 28, 2010
This was in my spam folder, not sure why. I am glad it helped you, and if you check out my recent posts (unfortunately when I reply I can’t see when you wrote this), it may help clarify even more. My website is: http://www.ReverseMortgageLI.com Regards! Kathie Adler.
kathieadler
April 24, 2010
Thanks for taking the time to write. It’s a great program if the government will say out of our hair and out of senior’s lives. Under the guise of helping, they are putting more restrictions that don’t help them at all. Kind regards! Kathie Adler
kathieadler
September 26, 2011