HECM Principal Limit
  
 

For a Home Equity Conversion Mortgage (HECM), Principal Limit at origination is based upon the:

 
 
Age of the youngest borrower (homeowner)  
 
Expected average mortgage interest rate  
 
Maximum Claim Amount (lesser of the Property Value or the FHA mortgage limit for the area at the time of closing, or amount entered by the lender (cannot exceed the system-calculated Maximum Claim Amount))  
  Incorrectly entering any of the above listed items may result in an inaccurate principal limit. SeeHECM Insurance Application Help (Processing Steps and Field Descriptions).  
   
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