• Question
  • How much money can i get with a reverse mortgage?

    Asked by a 68 year old man from Malibu, CA on 7/8/2015

    How much money can i get with a reverse mortgage?

  • Categories: Loan Amount and Type, Reverse Mortgages


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  • The amount you can get with a Reverse Mortgage generally depends on a few factors:

    1) The higher of $625,500 or the appraised value of your home (Appraisal must be completed by an Appraisal Management Company - AMC)
    2) The age of the youngest co-borrower or spouse
    3) Current interest rates

    For example, if you have a home valued at $750,000, it exceeds the value limit allowed by the FHA, so a lender would be required to use the maximum of $625,500 to determine your loan amount.

    If the youngest borrower or spouse was aged 62, you can estimate being able to borrow approximately 52% of $625,500 before closing costs. The proceeds must first be used to pay off any obligations against the home (HELOC, First and/or Second Mortgage, Tax Liens, etc) and the balance can be structured in monthly payments or an additional Line of Credit that grows over time.

    The older the youngest borrower, the more you qualify for. The amount you qualify for is called the Principle Limit which is based on age and interest rates.

    If you or your spouse is less than 62 years old, the younger spouse would be considered a Non Borrowing Spouse. At this point there are further requirements. You can still qualify for a Reverse Mortgage with a younger spouse.

    Here is some more information about the new protections for Non Borrowing Spouses here:

    I hope you found this helpful. If you need further information feel free to reach us at 888-411-RETIRE (7384)

  • Login to rate this answer:   Answered on 7/8/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.