Reverse Mortgage Principal Limit Changes

Beginning August 4, 2014, FHA will make changes to the principal limit factors (PLF) for FHA Reverse Mortgages, also known as HECM's.  The principal limit is the loan amount available based on a property's value minus closing costs and any existing liens.  The PLF will increase the qualifying percentages for the majority of reverse mortgage borrowers.  This is great news for the reverse mortgage industry and homeowners over the age of 62.