March 23, 2019

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FHA Announces 2017 HECM Limits

153-hudThe FHA official site has been updated recently to include 2017 loan limits for Home Equity Conversion Mortgages, also known as FHA HECM loans or FHA reverse mortgages.

According to the press release at, “The Federal Housing Administrations (FHA) Home Equity Conversion Mortgage (HECM) loan limits for Traditional HECM, HECM for Purchase, and HECM-to-HECM refinances are governed by the maximum claim amount limitation in sections 255(g) and 255(m) of the National Housing Act, which contains cross-references to section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act”.

The FHA updates HECM loan limits annually, and those updates are effective for the new calendar year; limits may be subject to change depending on legislation, FHA requirements, or other legal factors that may apply before or after the existing year’s update takes effect.

According to the FHA/HUD official site, “For the period January 1, 2017 through December 31, 2017, the maximum claim amount for FHA-insured HECMs will be $636,150”.

That amounts to 150 percent of the Federal Home Loan Mortgage Corporation (Freddie Mac) national conforming limit of $424,100. The press release adds, “This maximum claim amount of $636,150 is also applicable to Freddie Macs special exception areas: Alaska, Hawaii, Guam, and the Virgin Islands”.

The limits listed here are effective for all FHA HECM loans with case numbers assigned on or after the first day of the new year. 2017 HECM limits apply for the entire new year unless otherwise modified by the FHA or federal law. All HECM loans with case numbers prior to that date will be processed with HECM limits for 2016.

FHA HECM loans or FHA reverse mortgages are for qualified borrowers aged 62 or older who either own or are very close to owning their homes outright. Occupancy requirements apply, and FHA HECM borrowers are required to attend reverse mortgage counseling as a condition of loan approval. If there are changes to 2017 HECM limits, we’ll report on them in a separate blog post.

Joe Wallace - Staff Writer

By Joe Wallace

December 2, 2016

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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