Loan limits for conventional mortgages recently were raised with the passage of the Economic Stimulus Act of 2008. However, seniors hoping to tap into additional home equity via the nation’s most popular reverse mortgage are stuck with the same loan ceilings.

Currently, loan limits will retain the existing “floor” of 48 percent of the conforming loan limit or $200,160, as well as the “ceiling” of 87 percent, or $362,790. Those areas in between are limited to 95 percent of the local median home value.

There are many seniors who have been waiting for the higher figures to be in place so that they could obtain a reverse mortgage or refinance an existing reverse mortgage. Many prospective borrowers believe they can qualify for a reverse mortgage equal or close in size to the value of their home, or at least the local FHA loan limit. This isn’t the case.

click here for article

search for : Economic Stimulus Act, reverse mortgage