Reverse Mortgage: 2022 Loan Limits Increase

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The U.S. Department of Housing and Urban Development (HUD), has announced that the Maximum Claim Amount (MCA) for 2022 will increase to $970,800 effective January 1, 2022.1 The MCA has increased by $148,425 from 2021’s MCA of $822,375.

The FHA has increased the Home Equity Conversion Mortgage (HECM) limit for the sixth straight year.  The new loan limit allows borrowers who have higher home values the ability to access more equity than what was allowed in 2021.  The increase may help senior homeowners access more funds, refinance their existing reverse mortgage, or even benefit those who weren’t able to previously qualify for the product.

A HECM loan, also known as a reverse mortgage, is a Federal Housing Administration (FHA)2 insured loan allowing borrowers who are 62 years of age and older to access a portion of their home’s equity without having to make monthly mortgage payments.3

Reverse mortgage loans are insured by the government and are non-recourse loans and borrowers will never have to repay more than the value of their home if they decide to sell.  Homeowners can continue to age in place as long as they continue to make property tax and insurance payments, keep the home in good repair, and retain it as their primary residence.

If you are looking to access your home equity as an additional source of funds in retirement, the MCA increase may benefit you. Call 1-800-976-6211 to speak with a licensed loan advisor for more information.


Applies only to loans with case numbers assigned on or after January 1, 2022.

Federal Housing Administration (FHA) mortgage insurance premiums (MIP) will accrue on your loan balance. You will be charged an initial. MIP at closing. The initial MIP will be 2% of the home value not to exceed $12,723. Over the life of the loan, you will be charged an annual MIP that equals .5% of the outstanding mortgage balance.

3 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan.  You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements.  Failure to meet these requirements can trigger a loan default that may result in foreclosure.