Standard Lenders


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New Year, New Heights - Lending Limit Soars to $1,149,825 Starting January 1st, 2024!

As we usher in the New Year, there’s exciting news for homeowners exploring the possibilities of a reverse mortgage.

From January 1st, 2024, if you’re thinking about a reverse mortgage, you can now get more money. The lending limit is going up from $1,089,300 to a cool $1,149,825. This big increase means people who already have a reverse mortgage can get more cash, and it also gives a chance for those who found it hard to qualify before.

So, if you’re a homeowner, 2024 could be your year for more financial options!

Understanding the Lending Limit

The lending limit is super important in the world of reverse mortgages. It decides the maximum amount of money homeowners can borrow based on their home’s equity. This limit is closely connected to the principal limit of the loan, which is the most money a borrower can get. To put it simply, it’s like a money limit that sets how much you can get from a reverse mortgage. It’s like the top amount you’re allowed to borrow.

Historical Progression

For eight years, from 2009 to 2017, the HECM lending limit remained at $625,500. Despite a modest uptick to $636,150 in 2017, reflecting the gradual rise in housing prices, it was in 2018 that more substantial increases began. The limit surged to $679,650, followed by a $46,875 jump in 2019, reaching $726,525. This paved the way for reverse mortgage borrowers to explore the benefits of refinancing their HECM loans.

In 2020, the upward trajectory continued with another increase to $756,600, marking a $39,075 gain. Even amid the challenges posed by the Covid-19 pandemic, property values persisted in their ascent. In 2021, the HECM limit reached $822,375, demonstrating a $56,775 increase. Surpassing expectations, the housing market experienced remarkable growth in 2022, propelling the HUD limit to an unprecedented $970,800—an extraordinary single increase of $148,425!

2023 and Beyond

The momentum persisted in 2023, with the HECM lending limit reaching $1,089,300—a testament to the continued growth in housing prices and dynamic market conditions. Now, as we approach 2024, the HECM lending limit is poised to soar even higher, reaching an impressive $1,149,825. These consistent increases not only underscore the strength of the housing market but also present unprecedented opportunities for borrowers seeking the advantages of reverse mortgages.

Implications for Borrowers

The increase in the lending limit is a big deal for people looking for more financial options during their retirement. If you were almost eligible before or wanted to borrow more money, this change is like a golden opportunity for you. It means you can now benefit from being able to borrow more, thanks to the higher lending limit. It’s a game-changer for your financial flexibility in your retirement years!

Did you want to do a reverse mortgage refinance in 2023 but weren’t able to?

 This is the best time to try!

Call us now so you can learn how to take advantage of this new change coming in 2024!

Contrasting HECM with Jumbo Reverse Mortgage Limits

In this milestone event, the HUD Home Equity Conversion Mortgage (HECM or “Heck-um”) has breached the $1,000,000 mark for the second time. The noteworthy increase in the 2024 limit not only offers a significant boost for homeowners with properties valued above $1,000,000 but also presents a compelling alternative to proprietary or jumbo reverse mortgage programs.

This development carries added significance as it signifies one of the most substantial percentage increases observed in the past several years. It underscores the evolving landscape of reverse mortgage options, providing homeowners with high-value properties a valuable opportunity to explore HECM as a competitive and potentially advantageous choice.

Now, those with properties exceeding the million-dollar mark can benefit from the flexibility and benefits offered by HECM, making it a notable consideration in the realm of reverse mortgages. This not only widens the array of choices available to homeowners but also emphasizes the adaptability of HECM to cater to a broader range of property values, fostering inclusivity in the ever-expanding field of reverse mortgage solutions.

Exploring the Benefits

1. More Financial Freedom

The enhanced lending limit empowers borrowers to access a greater portion of their home equity, providing a reliable source of income during retirement.

2. Qualification Opportunities

With the revised lending limit, homeowners who may not have qualified for a reverse mortgage in the past can now explore this financial solution as a viable option for their retirement plans.

3. Strategic Planning

Homeowners can strategically plan for their future, using the increased lending limit to address specific financial goals, such as healthcare expenses, home renovations, or debt consolidation.

4. Enhanced Lifestyle Choices

The bolstered lending limit offers homeowners an opportunity to elevate their standard of living during retirement. Whether it’s pursuing long-delayed travel plans, indulging in hobbies, or enjoying leisure activities, the increased financial flexibility opens doors to a more enriched and fulfilling lifestyle.

5. Flexible Repayment Options

With the increased lending limit, borrowers can explore more flexible repayment options that align with their unique financial situations. This flexibility allows homeowners to tailor their reverse mortgage strategy to meet evolving needs and preferences over time.

6. Peace of Mind in Healthcare Planning

With healthcare costs being a big concern in retirement, the increased lending limit acts as a financial safety net. It gives you peace of mind when it comes to planning and handling potential medical expenses in your later years.

Closing Thoughts

In wrapping things up, it’s clear that the increased lending limit in 2024 brings a wave of opportunities for homeowners. Whether you’ve been thinking about it for a while or it’s a new consideration, this is a chance to explore and make the most of your home’s value. Your financial future matters, and with the enhanced lending limit, there’s more room for growth and security.

Now is the time to take a closer look at the possibilities waiting for you.

Don’t let this chance slip by—reach out to us today. We’re here to guide you through the details and show you how the higher lending limit can be a game-changer for your financial goals.

Your journey to financial well-being starts with a simple conversation, so don’t hesitate to get in touch.

Let’s make 2024 the year your financial future shines brighter than ever!

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