FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters — b. Maximum Claim Amount

hud-4000-1-ii-b-maximum-claim-amount

HUD effective date: 04/29/2024 · section II.B.3 · Handbook 4000.1

FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024).

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source:
  type: guide
  id: hud-4000-1-ii-b-maximum-claim-amount
  authority: FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters — b. Maximum Claim Amount
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024).
  coverage_tier: operative
  effective_date: '2024-04-29'
  source_url: https://www.hud.gov/sites/default/files/Housing/documents/40001-hsgh-Update-18.pdf
  section_path: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters
  program: Title II Reverse
  source_page: 611
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    section: FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024)
    description: 'b. Maximum Claim Amount (04/29/2024) i. Definition The Maximum Claim Amount (MCA) is the lesser of the: • appraised value as determined by the Collateral Risk Assessment; • national mortgage limit; or • sales contract price (applicable only to HECM for Purchase). ii. Standard The Mortgagee must determine the MCA at origination. When the collateral risk assessment determines that a second appraisal is required, the Mo'
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      authority: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12)
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      paragraph_quote: |-
        b. Maximum Claim Amount (04/29/2024) 
        i. Definition 
        The Maximum Claim Amount (MCA) is the lesser of the: 
        • appraised value as determined by the Collateral Risk Assessment; 
        • national mortgage limit; or 
        • sales contract price (applicable only to HECM for Purchase). 
        ii. Standard 
        The Mortgagee must determine the MCA at origination. When the collateral risk 
        assessment determines that a second appraisal is required, the Mortgagee must use the 
        lower of the two appraised values. The IMIP must not be taken into account in the 
        calculation of the MCA. Closing costs must not be taken into account in determining 
        appraised value. 
      drafter_attestation: Verbatim contiguous span of Handbook 4000.1 Update 18 covering 1 section(s) from "b. Maximum Claim Amount" (p611) to "b. Maximum Claim Amount" (p611); verified against snapshot e1bca3432cf19e09 on 2026-08-23.
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      section_path: II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters
    effective_date: '2024-04-29'

Verbatim regulatory text (1)

Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters — b. Maximum Claim Amount — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024)

Effective 2024-04-29 · publisher's stamp for this provision

b. Maximum Claim Amount (04/29/2024) i. Definition The Maximum Claim Amount (MCA) is the lesser of the: • appraised value as determined by the Collateral Risk Assessment; • national mortgage limit; or • sales contract price (applicable only to HECM for Purchase). ii. Standard The Mortgagee must determine the MCA at origination. When the collateral risk assessment determines that a second appraisal is required, the Mortgagee must use the lower of the two appraised values. The IMIP must not be taken into account in the calculation of the MCA. Closing costs must not be taken into account in determining appraised value.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

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Operationalizing FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. Title II Insured Housing Programs Reverse Mortgages > 3. Allowable Mortgage Parameters — b. Maximum Claim Amount

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