Principal Limit (applicable to HECMs only)

Principal Limit (applicable to HECMs only)

Principal Limit refers to the maximum amount of proceeds that a Borrower may receive from the HECM before any Disbursements are made, taking into account the age of the youngest Borrower or Eligible NBS, the Expected Rate, and the Maximum Claim Amount. Principal Limit Factor (applicable to HECMs only) Principal Limit and is available on the HUD website.