The 2008 stimulus package increased the reverse mortgage limit to $417,000 in effort to aid the many millions of seniors faced with the financial challenges brought on by a turbulent stock market and troubled economy.  The losses have only become more dramatic so far this year leaving many seniors in search of ways to get by financially.  Obama’s 2009 stimulus package addresses this concern for senior homeowners by increasing the limit further to match the Fannie/Freddie limit of $625K.  Here is the news as announced by the National Reverse Mortgage Lender’s Association.

NRMLA is pleased to report that the compromise package approved by the House-Senate conference committee yesterday does indeed set the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 — for the balance of 2009.

Please remember that after President Obama signs the bill, HUD still must issue a Mortgagee Letter to implement the change. From our previous experience, we have learned that there is no telling exactly how long it will take for them to get this done, but with the temporary nature of this provision, we hope that they will act expeditiously.

David Iwashita, President of Iwashita Real Estate Development, joined me on the air on Monday to discuss his exciting project in Coronado. Here is a link to the units with more information.