A reverse mortgage’s available proceeds depend on an age- and rate-based factor HUD publishes — not a formula this calculator can derive on its own, so it’s taken as a direct input from the current published table.
How it works
The Maximum Claim Amount is the lesser of the home’s appraised value or the current FHA lending limit. Multiplying that by the principal limit factor gives the principal limit; subtracting any existing mortgage payoff and closing costs gives estimated net proceeds.
What this does not include
This is a simplified estimate — actual HECM proceeds also depend on mortgage insurance premiums, servicing fees, and the specific product’s terms, all of which a lender’s formal HECM quote would include and this calculator doesn’t.
How to use this calculator
- Enter home value, the current FHA lending limit, and your principal limit factor from a lender or HUD table.
- Enter any existing mortgage to pay off and estimated closing costs.
Frequently asked questions
Where do I find my principal limit factor?
It depends on the youngest borrower’s age and current interest rates — a lender or a HUD-published table provides the specific factor for a given age/rate combination.
Why is the limit based on the lesser of home value or the FHA cap?
Because HECM loans are FHA-insured, so proceeds can never exceed what the program’s lending limit allows, regardless of how much a home is actually worth above that cap.
What if my existing mortgage exceeds the principal limit?
The reverse mortgage generally can’t proceed until senior liens are paid off some other way — this calculator declines that combination rather than showing a negative result.
