How Much Money Can You Get on a Reverse Mortgage?
The amount you can receive from a HECM reverse mortgage depends on three variables: your age (or the younger spouse's age), your home's appraised value up to the FHA maximum, and current interest rates. These three inputs produce your "principal limit" — the maximum amount you can borrow.
What Is the Principal Limit?
The principal limit is the total amount of money available to you under a HECM reverse mortgage. HUD publishes "Principal Limit Factor" (PLF) tables.
Principal Limit = Home Value × PLF
The FHA maximum claim amount for 2025 is $1,209,750.
The Three Factors That Determine Your Amount
1. Age of the Youngest Borrower
The older you are, the higher your PLF — and the more you can borrow. A 78-year-old has a shorter expected tenure in the home than a 62-year-old, so the lender can extend a larger loan.
2. Appraised Home Value (Capped at $1,209,750 in 2025)
A higher home value produces a higher principal limit, dollar for dollar, up to the cap.
3. Expected Interest Rate
The higher the expected interest rate, the lower the principal limit. The difference between a 5% and 7% expected rate can reduce your principal limit by 8–10 percentage points.
Real Examples at 62, 70, and 78 ($500,000 Home)
Age 62
Principal Limit Factor: ~40% → Gross Principal Limit: $200,000
Age 70
Principal Limit Factor: ~48% → Gross Principal Limit: $240,000
Age 78
Principal Limit Factor: ~56% → Gross Principal Limit: $280,000
Every eight years of age adds roughly 8 percentage points to the PLF — on a $500,000 home, that's $40,000 more in gross borrowing capacity.
The First-Year Disbursement Limit
HUD restricts how much you can draw in the first 12 months to the greater of:
- 60% of the principal limit, OR
- Mandatory obligations plus 10% of the principal limit
FAQ
How much money do you get on a reverse mortgage?
It depends on your age, home value, and interest rates. A 62-year-old with a $500,000 home might access roughly 40% of that value at current rates; a 78-year-old with the same home might access 55–60%.
Does a higher home value mean a bigger reverse mortgage?
Yes, up to the FHA cap of $1,209,750 in 2025. Proprietary jumbo reverse mortgages exist for higher-value homes.
Does age matter for a reverse mortgage?
Significantly. The older you are, the higher your Principal Limit Factor.
Can you get the full amount in the first year?
No. HUD limits first-year draws to the greater of 60% of the principal limit, or mandatory obligations plus 10% of the principal limit.