The FHA-insured reverse mortgage program got its annual reset for 2026: the HECM maximum claim amount is now $1,249,125, up from $1,209,750 in 2025. The new limit applies to FHA case numbers assigned on or after January 1, 2026.
What the limit actually does
The maximum claim amount is the cap on the home value a Home Equity Conversion Mortgage calculation can recognize. If your home is worth $900,000, the higher limit changes nothing for you — your full value was already counted. If your home is worth $1.4 million, the 2026 limit means roughly $39,000 more of your home's value enters the formula that determines how much you can borrow.
Actual proceeds depend on three inputs: the youngest borrower's age, current interest rates, and the lesser of your home's value or the maximum claim amount. Higher rates reduce proceeds; the borrower must be 62 or older, per program rules.
What has not changed
- Counseling is mandatory. HUD requires a session with an approved counselor before you can apply — a feature, not a hurdle. It is your best defense against the scam patterns we document here.
- You keep title and stay responsible for property taxes, insurance, and maintenance. Falling behind on those can still trigger repayment.
- The loan comes due when the last borrower sells, moves out permanently, or passes away — and heirs retain options, including refinancing the balance or selling with any remaining equity going to them.
Is 2026 a good year to look?
Two crosscurrents. The higher limit and near-record home equity — U.S. homeowners hold roughly $34.5 trillion — argue for it. Interest rates in the mid-6% range argue for careful comparison, since rates directly reduce reverse proceeds. For many homeowners the right answer is comparing a reverse mortgage against a HELOC or home equity loan side by side; our comparison section walks through exactly that decision, and the home equity calculator shows what you are working with.
Ready to see numbers? Compare reverse mortgage options here.