HUD: FHA INFO #20-89: 2021 Nationwide Home Equity Conversion Mortgage Limits

HUD: FHA INFO #20-89: 2021 Nationwide Home Equity Conversion Mortgage Limits

Investor Update
December 2, 2020

Source: HUD

Additional Resource:

Mortgage Letter 2020-41: 2021 Nationwide Forward Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2020-422021 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2021 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. Read today’s Press Release.

The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2021, will be $822,375; 150 percent of the Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $510,400. This limit is applicable for case numbers assigned on or after January 1, 2021, through December 31, 2021. For additional details, refer to Mortgagee Letter 2020-42.

The maximum CY 2021 claim amount for FHA-insured HECMs will be included in a future Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) release.

Quick Links:

• View Mortgagee Letter 2020-42 and all other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

• View CY 2021 HECM limits information at:

–      FHA mortgage limits by county, state, or MSA at: https://entp.hud.gov/idapp/html/hicostlook.cfm

–      Complete listing of FHA loan limits by calendar year at: http://www.hud.gov/pub/chums/file_layouts.html

–      Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits