FHA HECM Lending Limits
Understand the federal lending limit for reverse mortgages and see how it compares to home values across every state.
This is the maximum home value used to calculate your reverse mortgage proceeds. If your home is worth more than this amount, only the first $1,249,125 is used in the HECM calculation.
| State | Median Home Value | HECM Limit | Room Under Limit | Status |
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Key Takeaways
- In most states, the HECM limit far exceeds the median home value, meaning most homeowners can use their full home value in the HECM calculation.
- In high-cost states like California, Hawaii, Massachusetts, and Washington, some homeowners may have homes that exceed the limit. In these cases, only the first $1,249,125 is used.
- If your home exceeds the HECM limit, a proprietary (jumbo) reverse mortgage may allow you to access more of your equity.
Own a High-Value Home?
If your home is appraised above the $1,249,125 HECM limit, you are not out of options. Proprietary reverse mortgages (also called jumbo reverse mortgages) are offered by private lenders and can accommodate home values well above the FHA ceiling. These products have no federally mandated cap, though they come with different terms than a government-insured HECM. Learn more about reverse mortgage types.
What Is the HECM Lending Limit?
The Home Equity Conversion Mortgage (HECM) lending limit is the maximum property value that the Federal Housing Administration (FHA) will use when calculating how much you can borrow through a government-insured reverse mortgage. It is set nationally each year by FHA and applies equally to every county in the United States.
Prior to 2009, HECM lending limits varied by county, similar to how forward FHA mortgage limits work today. Since the Housing and Economic Recovery Act of 2008 took effect, HECMs use a single national limit—the FHA ceiling—regardless of where your home is located.
For 2026, that limit is $1,249,125. This figure is also called the maximum claim amount because it caps the amount FHA will insure on a single HECM loan.
How the Limit Affects Your Proceeds
Your reverse mortgage proceeds are calculated using the lesser of your home's appraised value or the HECM lending limit. So if your home appraises at $900,000, your full appraised value is used. But if your home appraises at $1,500,000, only $1,249,125 is factored into the calculation.
Other factors that determine your actual payout include:
- Your age (or the age of the youngest borrower)
- Current interest rates at the time of closing
- The disbursement option you choose (lump sum, line of credit, monthly payments, or a combination)
- Existing mortgage balances that must be paid off
A higher home value does not always mean significantly more money if you are well above the limit—the cap still applies.
HECM vs. Proprietary for High-Value Homes
If your home is worth substantially more than the HECM limit, a proprietary (jumbo) reverse mortgage may be a better fit. Here is how they compare:
- HECM: Government-insured, regulated by FHA, subject to the national lending limit. Includes mandatory counseling and FHA mortgage insurance premiums (MIP). Available through FHA-approved lenders only.
- Proprietary: Private-label products with no FHA limit. Can accommodate home values of $2 million, $5 million, or more depending on the lender. No FHA insurance premium, but also no FHA guarantee that your line of credit will remain available. Terms vary by lender.
Many homeowners with high-value properties compare both options before deciding. Speak with a HUD-approved counselor and request quotes from multiple lenders to understand which path offers the best terms for your situation.
Historical HECM Lending Limits
The national HECM limit has increased over time as home prices have risen. Recent limits:
| Year | HECM Lending Limit |
|---|---|
| 2023 | $1,089,300 |
| 2024 | $1,149,825 |
| 2025 | $1,209,750 |
| 2026 | $1,249,125 |
Related Resources
Estimate Your Reverse Mortgage Proceeds
See how your home value, age, and current rates translate into potential proceeds with our free calculator.
Disclaimer: While every effort has been made to ensure accuracy, this tool is for educational purposes only. ReverseReady is not a lender or financial advisor. Results are estimates — actual figures will vary based on your specific situation, current rates, and lender terms. Consult a HUD-approved counselor or licensed lender for personalized guidance.