How Much Can a 70-Year-Old Borrow with a Reverse Mortgage Right Now?

As retirees navigate an increasingly complex financial landscape, the reverse mortgage has emerged as a powerful tool for accessing home equity and supplementing retirement income. For those aged 70 and above, the current market offers particularly favorable conditions, with increased lending limits and relatively stable interest rates.

The Growing Importance of Home Equity in Retirement

With traditional pensions becoming less common and Social Security benefits under strain, many Americans are finding themselves in a situation where they have significant home equity but limited liquid cash. Recent data shows that the average homeowner has about $313,000 in home equity — a valuable asset that can be accessed through a reverse mortgage.

Increased Lending Limits and Favorable Rates

In 2025, the Federal Housing Administration (FHA) raised the maximum claim amount for Home Equity Conversion Mortgages (HECMs) to $1,209,750 — an increase of nearly $60,000 from the previous year. This means that homeowners with high-value homes can now access more funds than ever before.

While the Federal Reserve has paused rate cuts in recent months, the reductions that took place in 2024 have helped reduce borrowing costs, making now an especially good time to consider a reverse mortgage.

How Much Can a 70-Year-Old Borrow?

At age 70, borrowers qualify for higher payout ratios compared to those just meeting the minimum age of 62. The U.S. Department of Housing and Urban Development (HUD) uses a Principal Limit Factor (PLF) to determine what portion of a home's value can be accessed.

For a 70-year-old borrowing at an average interest rate of around 6%, the PLF is approximately 41%. Using this factor, a homeowner with a $500,000 home could access roughly $205,000 in funds, while someone with a home valued at the FHA cap of $1,209,750 could access up to $495,997.50.

However, the net principal limit — the actual amount a borrower can receive — is generally lower due to fees, closing costs, and mandatory obligations like the Life Expectancy Set-Aside (LESA).

Options for Homeowners with Higher-Value Properties

For those whose homes are valued above the HECM cap, a proprietary jumbo reverse mortgage may be an option. These non-FHA loans can allow borrowers to access up to $4 million in some cases, though they do not come with FHA insurance.

Tips to Maximize Your Reverse Mortgage Benefits at Age 70

Choose the Right Payout Option: Options include a lump sum, monthly payments, a line of credit, or a combination. A line of credit can be especially beneficial, as unused funds grow over time, giving you access to more money in the future.

Lock in a Favorable Interest Rate: Lower rates mean more money available for borrowing. Some lenders allow you to lock in a rate for up to 120 days, which can help protect your borrowing power during the application process.

Compare Lender Fees and Closing Costs: These costs are deducted from your loan proceeds, so finding a lender with competitive pricing can increase the amount of money you receive.

Work with a Knowledgeable Specialist: An experienced reverse mortgage professional can guide you through the process, help you understand all the costs involved, and ensure that your loan aligns with your long-term financial goals.

Final Thoughts

For 70-year-olds considering their retirement financing options, the current reverse mortgage landscape offers a uniquely favorable opportunity. With high FHA lending limits and relatively stable interest rates, retirees can access substantial value from their home equity.

However, as with any major financial decision, it's crucial to thoroughly evaluate your circumstances, understand all costs and obligations, and work with qualified professionals to ensure that a reverse mortgage aligns with your long-term retirement strategy and estate planning goals.