Reverse Mortgage (HECM) Principal Limit & Proceeds Calculator

What it is

A deterministic, in-browser HUD Home Equity Conversion Mortgage (HECM) proceeds calculator for elder-law and senior financial-planning work. Computes the maximum claim amount = min(appraised value, FHA national lending limit), the principal limit = PLF x maximum claim, deducts the 2% up-front FHA mortgage insurance premium plus entered origination/closing costs and any mandatory obligations, and returns the net available proceeds - with the 60%-of-principal-limit first-year-disbursement benchmark and the lump-sum vs line-of-credit vs tenure framing. No API, no key, no network, no AI - every figure is exact arithmetic citing 24 CFR Part 206. The FHA national limit and the Principal Limit Factor are DATED inputs you confirm from the current HUD Mortgagee Letter and PLF table; a wrong year never silently mis-computes because the limit, PLF, age, and expected rate actually used are always shown. Not lending, legal, tax, or financial advice.

Honest scope

Authorities cited

• National Housing Act sec. 255 (12 U.S.C. 1715z-20) - statutory authority for the FHA-insured Home Equity Conversion Mortgage program for elderly homeowners (age 62+).
• 24 CFR 206.3 - definitions: "maximum claim amount" = the LESSER of the appraised value and the FHA single-family national mortgage limit; "principal limit" computed from the PLF.
• 24 CFR 206.55 - calculation of the principal limit as the Principal Limit Factor (a function of the age of the youngest borrower and the expected interest rate) applied to the maximum claim amount.
• 24 CFR 206.105(a) - the initial (up-front) FHA mortgage insurance premium, 2.0% of the maximum claim amount under the consolidated structure (HUD Mortgagee Letter 2017-12).
• 24 CFR 206.19 - payment plan / disbursement options (single lump sum, line of credit, term and tenure monthly payments) and the first-year initial-disbursement limit (the greater of 60% of the principal limit or mandatory obligations + 10%).
• 24 CFR 206.33 - borrower eligibility: the mortgagor must be 62 years of age or older.
• 24 CFR 206.41 - mandatory HUD-approved counseling before application; the homeowner must receive HECM counseling.
• HUD Mortgagee Letter (annual) - the HECM national maximum claim amount / lending limit, a SINGLE national figure: $970,800 (2022), $1,089,300 (2023), $1,149,825 (2024), $1,209,750 (2025). Confirm the current year's Mortgagee Letter.
• HUD Mortgagee Letter 2017-12 - the current Principal Limit Factor table (age x expected rate) and the 2.0%-of-MCA up-front MIP; the PLF used here is read from that published table, not derived.