By Jessica Martinez · Contributing Writer, Business & FinanceBy Jessica Martinez · Contributing Writer, Business & FinanceThe 2026 FHA HECM national lending limit (maximum claim amount) is $1,249,125, up $39,375 from $1,209,750 in 2025, per HUD Mortgagee Letter 2025-22, issued December 11, 2025, and effective for FHA case numbers assigned on or after January 1, 2026. This limit caps the home value used to calculate reverse mortgage proceeds nationwide, including in Alaska, Hawaii, Guam and the U.S. Virgin Islands. The table below sets out the limit alongside the standard upfront and ongoing HECM cost components, with sources and a downloadable CSV.
HUD sets a single national HECM maximum claim amount each year; it is not the amount a borrower receives, but the ceiling on the home value used in the proceeds formula. For 2026, that ceiling is $1,249,125, an increase of about 3.3 percent over the 2025 figure of $1,209,750. HUD ties the number to 150 percent of the Federal Home Loan Mortgage Corporation's national conforming loan limit and announces it each December in a Mortgagee Letter for the following calendar year. A home appraised above the limit still uses the capped figure in the calculation; a home appraised below it uses its actual value. Plug the 2026 limit into your own numbers on the payout calculator.
| Year | HECM Maximum Claim Amount | Source |
|---|---|---|
| 2025 | $1,209,750 | HUD Mortgagee Letter 2024-22 (November 26, 2024) |
| 2026 | $1,249,125 | HUD Mortgagee Letter 2025-22 (December 11, 2025) |
The cost figures below are the standard HECM components set by HUD's HECM program rules, the same figures behind the calculator on this site and the age-by-age breakdown in how much of that limit you can actually reach. Upfront mortgage insurance runs 2 percent of the maximum claim amount, and an annual premium of 0.5 percent of the outstanding balance accrues afterward. The origination fee formula is set by federal rule and capped at $6,000. A monthly servicing fee of up to $35 is allowed but rarely charged today. None of these figures are loan offers; a HUD-approved counselor and a licensed lender will confirm your actual costs.
| Cost component | Amount | What it is |
|---|---|---|
| Upfront mortgage insurance premium (MIP) | 2% of the Maximum Claim Amount | FHA insurance paid at closing; funds the non-recourse guarantee |
| Annual (ongoing) MIP | 0.5% of the outstanding balance per year | Ongoing FHA insurance, accrues to the loan balance |
| Origination fee | Greater of $2,500 or 2% of the first $200,000 of home value plus 1% of the amount above $200,000, capped at $6,000 | Lender's fee for originating the loan |
| Third-party closing costs | Typically $2,000 to $4,000 | Appraisal, title and attorney fees |
| Loan servicing fee | Up to $35 per month, if charged | Ongoing loan administration; most current HECM lenders do not charge one |
Download the full CSV (lending limit history, cost components, and worked examples).
Upfront MIP on a $400,000 home is $8,000 (2% of $400,000). On a home valued at or above the 2026 cap, upfront MIP is $24,982.50 (2% of $1,249,125), since the calculation cannot exceed the national limit regardless of the home's actual appraised value. The origination fee on a $400,000 home works out to the greater of $2,500 or $6,000 (2% of the first $200,000, plus 1% of the next $200,000), so the fee is capped at $6,000.
| Scenario | Calculation | Result |
|---|---|---|
| Upfront MIP, $400,000 home | 2% × $400,000 | $8,000 |
| Upfront MIP, home at the 2026 cap | 2% × $1,249,125 | $24,982.50 |
| Origination fee, $400,000 home | Greater of $2,500 or $6,000, capped at $6,000 | $6,000 |
The lending limit figures come from HUD's HECM Mortgagee Letters, the primary federal source that sets the maximum claim amount for each calendar year. The 2026 figure is drawn from Mortgagee Letter 2025-22 (December 11, 2025); the 2025 comparison figure is drawn from Mortgagee Letter 2024-22 (November 26, 2024). The cost figures, upfront MIP, annual MIP, and the origination fee formula, reflect HUD's HECM program rules and are the same figures the calculator and borrowing-limit guide on this site already use; they are standard across FHA-insured HECM loans and do not vary by lender. The servicing fee figure reflects common current industry practice rather than a fixed federal rule; check your own loan documents, since a lender may charge less or nothing. This page was last updated July 2, 2026, and is reviewed each year when HUD issues its new HECM Mortgagee Letter, typically in December.
Cite this page: ReverseMortgageGuide, "2026 HECM Reverse Mortgage Lending Limit and Cost Reference," 2026, https://reversemortgageguide.net/2026-hecm-lending-limit-and-cost-reference.
Enter a home value and age to see the 2026 limit and estimated costs applied in the calculator.
The 2026 HECM maximum claim amount is $1,249,125, up from $1,209,750 in 2025, per HUD Mortgagee Letter 2025-22, issued December 11, 2025, and effective for FHA case numbers assigned on or after January 1, 2026.
The main upfront costs are the FHA mortgage insurance premium, 2 percent of the maximum claim amount, and an origination fee capped at $6,000, plus third-party closing costs such as the appraisal and title work, typically $2,000 to $4,000.
Yes. HUD sets the HECM maximum claim amount annually, tied to 150 percent of the Federal Home Loan Mortgage Corporation's national conforming loan limit, and announces it each December in a Mortgagee Letter for the following calendar year.
Jessica maintains this reference table and updates it each December when HUD publishes the new Mortgagee Letter. If a number on this page looks off, it is the first thing she checks.