Last reviewed 08-20-2026Short-Sale.com Editorialglossary
Net Principal Limit (Npl) (applicable to HECMs only)
FHA Single Family Housing Policy Handbook Glossary November 26 2025
Updated 08-20-2026
Net Principal Limit (Npl) (applicable to HECMs only)
Net Principal Limit (NPL) refers to the amount of HECM funds available to, or to be paid on behalf of, the Borrower after deducting all fees and charges that are required as a condition of the Mortgage and prior disbursements from the Principal Limit.
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