How much can you borrow?
The amount varies based on factors including the borrower's age, the amount of equity in the house, the property's location and the lender's guidelines.
Homeowners in areas with high housing costs can borrow as much as $313,000 with an FHA-insured loan. In lower-cost areas, however, the maximum is $172,000.
Older people can borrow more on the theory they have less time to live and the loan would be repaid more quickly.
For instance, a 74-year-old borrower in Los Angeles or New York who has $800,000 in home equity could get a lump sum of about $195,000 from the government-guaranteed Home Equity Conversion Mortgage program. Such a person living in Denver, however, could get only $164,000.
The 74-year-old in L.A. or New York with $800,000 in equity could get a bigger lump sum -- as much as $239,000 -- by borrowing from Financial Freedom, a lender that offers reverse mortgages not insured by the FHA.
Source: LA Times
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