How Much Can You Get From a Reverse Mortgage?
The amount you can borrow through a HECM depends on three things: your age, your home's appraised value, and current interest rates. These three variables feed into a federal formula that determines your principal limit — the maximum you can access. Here is how to think about the numbers before talking to a lender.
What is the principal limit?
The principal limit is the maximum amount a HECM lender can make available to you. It is calculated by applying a HUD-published factor (the "principal limit factor" or PLF) to your home's value — capped by the FHA lending limit. The PLF is determined by your age and current interest rates.
This is not necessarily what you take as cash on day one. It is your total available credit. How much you draw, and in what form, is your choice.
The three variables that determine your amount
1. Your age (specifically, the youngest borrower's age). Older borrowers get higher principal limits. The reason is actuarial: older borrowers have shorter expected loan durations, so FHA's insurance fund takes on less risk. The principal limit factor increases at every age above 62. A 75-year-old typically has access to 10–15 percentage points more of their home's value than a 62-year-old.
2. Your home's appraised value. FHA requires a full appraisal from an FHA-approved appraiser. Your home's value determines the base used in the calculation — capped at the FHA lending limit (see below). If your home is worth $300,000, the entire $300,000 is used. If it's worth $1.5 million, only the FHA lending limit applies.
3. Current interest rates. The HECM note rate directly affects the PLF. Lower rates increase the factor (more available); higher rates decrease it (less available). Because rates change, the amount you can access at application may differ from the final amount at closing. In a rising rate environment, locking the rate quickly matters.
Real examples with dollar amounts
These examples use approximate current rates. Actual amounts vary — use our calculator for a personalized estimate.
Example 1: Age 68, home value $350,000, no existing mortgage
PLF at age 68 ~57% → Principal limit: ~$199,500
Less closing costs (~$14,000): Net available ~$185,500
Example 2: Age 75, home value $500,000, $80,000 mortgage remaining
PLF at age 75 ~64% → Principal limit: ~$320,000
Less mortgage payoff: −$80,000
Less closing costs (~$17,000): Net available ~$223,000
Example 3: Age 82, home value $700,000, no mortgage
PLF at age 82 ~72% → Principal limit: ~$504,000
Less closing costs (~$20,000): Net available ~$484,000
The pattern is clear: age and equity are the dominant drivers. The older you are and the more equity you have, the more you can access.
The 2026 FHA lending cap
FHA sets a national maximum home value for HECM calculations. In 2026, that limit is $1,249,125. Even if your home is appraised at $2 million, only $1,249,125 is used in the principal limit calculation for a standard HECM.
For homes above this threshold, homeowners sometimes look at proprietary reverse mortgages (also called "jumbo" reverse mortgages). These are not FHA-insured and have different cost structures, but they allow access to equity above the FHA ceiling. HomeBridge's network of FHA-approved lenders can discuss proprietary options if applicable to your situation.
Subtracting your existing mortgage
If you have an existing mortgage, HELOC, or any other lien on the property, it must be paid off at closing from your HECM proceeds. The net amount you actually access is the principal limit minus your existing loan balances minus closing costs.
This is not a barrier — it is simply the math. Most HECM borrowers use the loan to pay off an existing mortgage, eliminating their monthly payment, with some amount of credit line left over. For many, the primary financial benefit is the eliminated payment, not the available credit line.
Closing costs reduce net proceeds
Closing costs on a HECM are higher than on a traditional refinance. Expect:
- Upfront MIP: 2% of home value (capped at FHA lending limit)
- Origination fee: Up to $6,000 (FHA-capped)
- Appraisal: $400–$700
- Title, recording, and other third-party fees: $2,000–$5,000
Total upfront costs typically range from $10,000 to $22,000 depending on home value. These are usually financed into the loan — you don't pay them out of pocket — but they reduce your available net proceeds.
How to estimate your number before applying
The fastest way is our free HECM calculator — enter your home value, age, and existing mortgage balance and get an estimated principal limit in under a minute. No credit check, no information shared with lenders.
For a more personalized estimate, our pre-qualification form takes about 2 minutes and gives you an estimate based on your specific state, home value bracket, and age range. This estimate reflects the proceeds available after existing mortgages and closing costs — the number that actually matters for planning purposes.
Remember: the final number is calculated by the lender at closing, based on the actual appraised value and the rate environment at that time. The estimate you receive today is directionally accurate, but not a commitment to lend.