Our guide breaks down the FHA’s decision in an easy-to-understand format. We’ve included handy tables comparing the reverse mortgage loan limits of 2024 and 2025, showing you exactly how much more you can borrow. Plus, a “2025 Loan-To-Value Comparison” table illustrates how much of your home’s value you can tap into with these new lending limits.
This article, backed by data and expert analysis, is designed to be your one-stop guide to understanding the changes in HECM limits for 2025.
| 62 | 36.9% | $425,435 | $447,607 |
| 65 | 39.2% | $450,731 | $474,222 |
| 70 | 42.0% | $484,076 | $509,304 |
| 75 | 45.4% | $523,170 | $550,436 |
| 80 | 50.4% | $553,065 | $610,923 |
| 85 | 56.8% | $653,100 | $687,138 |
| 90 | 63.7% | $733,588 | $771,820 |
(Table based on $1,209,750 or higher property value and illustrates the amount of additional funds made available using the new 2025 HECM lending limit. The expected rate used in the illustration was 5.9%/1.50% CMT Margin)
History of HECM Lending Limits
HUD Lending limits have changed over time to keep up with rising home values, giving older homeowners access to more equity. Knowing how these limits have increased can help you decide if a reverse mortgage is right for you.
In 2008, HUD created a single national lending limit of $417,000, replacing limits that used to vary by region. This made reverse mortgage limits the same for everyone, no matter where they lived. Then, in 2009, the Housing and Economic Recovery Act raised the limit to $625,500 to help homeowners during the housing crisis.
Gradual Increases Through 2017
For eight years, the limit stayed at $625,500. In 2017, it increased slightly to $636,150. While this wasn’t a big jump, it marked the beginning of steady annual increases.
- In 2018, the limit rose to $679,650, a $43,500 increase.
- In 2019, it increased by $46,875, reaching $726,525, making it easier for homeowners to refinance their reverse mortgages.
- In 2020, the limit climbed to $756,600, an increase of $39,075.
Larger Increases During the Pandemic
The COVID-19 pandemic caused home values to rise quickly, and lending limits followed.
- In 2021, the limit increased by $56,775 to $822,375.
- In 2022, there was a record-setting jump of $148,425, bringing the limit to $970,800. This reflected the sharp rise in home prices.
Recent Growth and Looking Ahead to 2025
The trend of increasing limits has continued.
- In 2024, the limit increased significantly to $1,209,750.
- By 2025, it is expected to rise further to $1,209,750, allowing homeowners even more access to their home equity.
What This Means for You
These increases give older homeowners more financial flexibility. Whether you want to pay off an existing mortgage, refinance, or use your home equity to fund retirement, higher lending limits mean more options.
| 2016 | $417,000 | 14.9% |
| 2017 | $636,150 | 52.5% |
| 2018 | $679,650 | 6.8% |
| 2019 | $726,525 | 6.8% |
| 2020 | $765,600 | 5.37% |
| 2021 | $822,375 | 7.41% |
| 2022 | $970,800 | 18% |
| 2023 | $1,089,300 | 12.2% |
| 2024 | $1,149,825 | 5.56% |
| 2025 | $1,209,750 | 5.21% |
