The maximum home value FHA considers when calculating the amount a borrower is eligible to borrow with an FHA-insured reverse mortgage is called the HECM* Max Claim Amount. The new Max Claim Amount will be $726,525 starting 1/1/2019. This is an increase of $46,875 from the 2018 Max Claim Amount of $679,650. In other words, a home with a value of $1 million will generate the same loan proceeds or line of credit as one that appraises for $726,525. This increase is welcome news and reflects FHA’s commitment to this great program. Here is a link to the official Mortgagee Letter: https://www.hud.gov/sites/dfiles/OCHCO/documents/18-12hsgml.pdf
*HECM stands for Home Equity Conversion Mortgage and is synonymous with what FHA calls their reverse mortgage loan program.