New FHA Reverse Mortgage Limits

The Federal Housing Administration has issued the loan limits on forward and reverse mortgages for 2010. These limits will take effect January 1 and apply to all loans approved through Dec. 31, 2010.

In low-cost parts of the country, the loan limit will be:

• $271,050 for a one-unit residence
• $347,000 on a two-unit
• $419,400 on a three-unit, and
• $521,250 on a four-unit

For those living in high-cost areas, the loan limit is:

• $729,750 for a one-unit residence
• $934,200 for a two-unit
• $1,129,250 for a three-unit, and
• $1,403,400 for a four-unit

These limits are derived by the FHA using a unique funding formula. There are a few special exceptions — for Alaska, Hawaii, Guam and the Virgin Islands — where FHA loan limits can be adjusted up to 150 percent.

In those locales, the 2010 loan limits are:

• $1,094,625 for a one-unit
• $1,401,300 for a two-unit
• $1,693,875 for a three-unit, and
• $2,105,100 for a four-unit

The FHA loan limit will remain $625,500 for home-equity conversion mortgages. That’s also the limit in Alaska, Hawaii, Guam and the Virgin Islands.

To view FHA loan limits nationwide, visit the Department of Housing and Urban Development website.