FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024)
FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, Part II — b. Maximum Claim Amount (04/29/2024) — 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)
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. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT B. Title II Insured Housing Programs Reverse Mortgages 3. Allowable Mortgage Parameters Handbook 4000.1 592 Last Revised: 11/26/2025 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.