Reverse Mortgage Limits 2026: HECM $1,249,125 Maximum (Seniors 62+)
🚨 BREAKING: HUD Announces NEW Reverse Mortgage Limits 2026
Effective January 1, 2026: HECM maximum claim amount increases to $1,249,125 (up $39,375 from $1,209,750). Seniors 62+ can access MORE home equity without monthly payments!
Reverse mortgage limits 2026: HECM maximum claim: $1,249,125 (up from $1,209,750 in 2025). Who qualifies: Seniors 62+ with home equity. How it works: Lender pays you (lump sum, monthly payments, or line of credit). No monthly mortgage payments required. Loan repaid when you sell, move, or pass away. How much you get: Depends on age (older = more), home value, interest rates. Example: 70-year-old, $500K home = ~$250K-$280K available. Get reverse mortgage quote. Related: pros & cons.
📊 Quick HECM Limits 2026
Maximum Claim 2026
$1,249,125
Up $39,375 from 2025
Minimum Age
62 Years
All borrowers must be 62+
Monthly Payments
$0
No payments required
How Much Can You Get? (2026 Calculator)
Reverse Mortgage Payout Estimates
| Age | $300K Home | $500K Home | $800K Home |
|---|---|---|---|
| 62 years | $135,000 (45%) | $225,000 (45%) | $360,000 (45%) |
| 65 years | $147,000 (49%) | $245,000 (49%) | $392,000 (49%) |
| 70 years | $165,000 (55%) | $275,000 (55%) | $440,000 (55%) |
| 75 years | $180,000 (60%) | $300,000 (60%) | $480,000 (60%) |
| 80 years | $195,000 (65%) | $325,000 (65%) | $520,000 (65%) |
💡 Note: Percentages are estimates. Actual amount depends on age, home value, interest rates, existing mortgage balance. Get personalized quote.
Factors Affecting Your Payout
1. Age (Older = More Money)
Why: Shorter life expectancy = lender expects loan outstanding for fewer years. Example: 62-year-old gets 45% of home value, 80-year-old gets 65%. Couples: Based on youngest borrower's age.
2. Home Value (Higher = More Money)
Maximum: $1,249,125 (2026 HECM limit). Example: $500K home = up to $275K (70-year-old). $2M home = up to $812K (70-year-old, but capped at $1,249,125 × 65% = $812K).
3. Interest Rates (Lower = More Money)
Why: Lower rates = less interest accrues over time = more you can borrow. 2026 rates: 6.5-7.5% (down from 8%+ in 2023). Impact: 1% rate drop = ~5-10% more payout.
🎯 Get Your Reverse Mortgage Quote!
See how much you can get. No monthly payments. Stay in your home!
Get Free Quote →Free quotes • No obligation • Seniors 62+ only
Complete HECM Requirements 2026
✅ Eligibility Requirements
1. Age 62+ (All Borrowers)
All borrowers on title must be 62+. If married, both spouses must be 62+. Younger spouse <62: Can be non-borrowing spouse (stays in home if borrower dies, but can't access funds).
2. Own Home Outright or Low Mortgage Balance
Must own home or have low mortgage balance. Reverse mortgage pays off existing mortgage first. Example: $500K home, $100K mortgage = $275K available - $100K payoff = $175K net proceeds.
3. Primary Residence
Must be your primary residence. Live there at least 6 months/year. Eligible properties: Single-family home, 2-4 unit (you live in one), FHA-approved condo, manufactured home (built after June 1976).
4. Financial Assessment
Must show ability to pay property taxes, insurance, HOA fees. Lender reviews income, credit, assets. If insufficient income: Lender may require set-aside (portion of proceeds reserved for taxes/insurance).
5. HUD Counseling (Required)
Must complete HUD-approved counseling session. Counselor explains how reverse mortgages work, alternatives, costs. Cost: $0-$125. Duration: 60-90 minutes. Required before application.
Reverse Mortgage Pros & Cons
✅ PROS
- • No monthly payments: No mortgage payments required (must pay taxes/insurance)
- • Stay in your home: Live there as long as you want
- • Tax-free proceeds: Money you receive is not taxable income
- • Non-recourse loan: Never owe more than home value
- • Flexible payouts: Lump sum, monthly payments, or line of credit
- • Supplement retirement: Extra income for living expenses
- • Delay Social Security: Use reverse mortgage, let SS grow
❌ CONS
- • High fees: 2-6% of home value in closing costs
- • Reduces inheritance: Less equity for heirs
- • Interest accrues: Loan balance grows over time
- • Must maintain home: Pay taxes, insurance, repairs
- • Loan due if you move: Must repay if you leave home
- • Affects Medicaid: Proceeds may impact eligibility
- • Spouse risk: Non-borrowing spouse <62 may lose home
Frequently Asked Questions
What is the maximum reverse mortgage amount in 2026?
HECM maximum claim: $1,249,125 (up from $1,209,750 in 2026). How much you get: Depends on age (45-65% of home value). Example: 70-year-old, $500K home = ~$275K (55%). $1M home = ~$550K (55%). $2M home = capped at $1,249,125 × 55% = ~$687K. Factors: Older age = higher percentage. Lower interest rates = more money. Existing mortgage reduces net proceeds. Payout options: Lump sum, monthly payments, line of credit, or combination. Calculate your exact amount.
Do I have to make monthly payments on a reverse mortgage?
No monthly mortgage payments required. What you must pay: Property taxes, homeowners insurance, HOA fees (if applicable), home maintenance/repairs. When loan becomes due: (1) You sell the home, (2) You move out permanently (12+ months), (3) You pass away, (4) You fail to pay taxes/insurance/maintain home. Repayment: Heirs can pay off loan (keep home) or sell home (keep remaining equity). Non-recourse protection: Never owe more than home value. If home worth less than loan balance, FHA insurance covers difference (heirs not responsible).
Can I lose my home with a reverse mortgage?
Yes, if you don't meet obligations. Reasons for foreclosure: (1) Fail to pay property taxes, (2) Fail to pay homeowners insurance, (3) Fail to maintain home (major repairs), (4) Move out for 12+ consecutive months, (5) Declare bankruptcy without court approval. Protection: Lender must give you chance to fix issues before foreclosure. Financial assessment: Lender may require set-aside (portion of proceeds reserved for taxes/insurance) if you have low income. Best practice: Budget for taxes/insurance/maintenance. Consider automatic payments. Keep home in good condition. Stay in home (primary residence requirement).
🚀 Access Your Home Equity Today!
Get quote. No monthly payments. Stay in your home!
Get Free Quote →Free quotes • No obligation • Seniors 62+ only