Big News for Homeowners 62+
The FHA has increased the Home Equity Conversion Mortgage (HECM) lending limit to $1,209,750 — the highest in history. This is a big deal for seniors in high-cost markets like Marin, San Francisco, and Sonoma, where home values often exceed $1M.
What Is the HECM Lending Limit?
It’s the maximum home value the FHA will use when calculating how much you can borrow with a federally insured reverse mortgage. Even if your home is worth more, this limit caps the calculation.
Why it matters in 2025: – More tax-free* equity access for higher-value homes.
– Expanded options for debt payoff, retirement income, or relocation.
Who Benefits Most – Seniors in high-cost housing markets. – Homeowners refinancing into a reverse mortgage to eliminate monthly payments. – Buyers aged 62+ using a HECM for Purchase to downsize or relocate without a new mortgage payment.
Strategic Retirement Uses – Supplement income without selling investments. – Fund home renovations or accessibility upgrades. – Cover healthcare or long-term care costs. – Create a “buffer asset” to protect portfolios in volatile markets.
Real-World Example A recent Marin client: – Paid off her existing mortgage. – Funded safety upgrades for aging in place. – Opened a substantial line of credit for future care needs. – Kept her investment portfolio fully intact.
The Bottom Line The new limit gives more homeowners the chance to make their home equity work for them. Whether you’re looking to increase cash flow, protect savings, or move into a home that fits your lifestyle, this could be your year.
Curious what the numbers look like for your home? I’d be happy to run a personalized calculation.
Mary Jo Lafaye
Reverse Mortgage & Retirement Specialist
Mutual of Omaha Mortgage
415‑259‑4979 | [email protected]
www.maryjolafaye.com
*Consult a tax professional
Mary Jo Lafaye, NMLS ID 246222. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
Equal Housing Lender