FHA Announces 2021 HECM Loan Limit

FHA Announces 2021 HECM Loan Limit

The U.S. Department of Housing and Urban Development will increase the maximum loan limit for Home Equity Conversion Mortgages from its current level of $765,600 to $822,375 effective for case numbers assigned on or after January 1, 2021.

This new maximum claim amount is also applicable to Freddie Mac’s special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands.

Details are provided in Mortgagee Letter 2020-42, which HUD just published.