Hello Marlin,

The answer is neither! The loan amount is not affected by marital status. Instead, the Principal Limit (the amount available to borrow) is determined by several key factors:

1. The age of the youngest borrower or eligible non-borrowing spouse
2. The home’s appraised value
3. The current interest rates
4. The HUD lending limits

Since age is the main personal factor in calculating the loan amount, marital status is irrelevant—only the age of the spouse matters.

If a married borrower’s spouse is older or the same age as an unmarried borrower, they would receive the same loan amount (assuming all other factors are equal). However, if a married borrower’s spouse is younger, the couple would qualify for less money since HUD uses the youngest person's age to project how long the loan may remain active.

Why Does a Younger Spouse Affect the Loan Amount?

HUD calculates loan amounts based on actuarial tables, which estimate how long a borrower will remain in the home and how much interest will accrue over time.

• A 62-year-old borrower is expected to stay in the home longer and accrue more interest than an 85-year-old borrower.
• Because of this, the HUD calculator allows older borrowers to qualify for a higher initial loan amount since they are expected to use the loan for a shorter period.

Other Factors That Do Not Affect Loan Amount

HUD does not consider lifestyle habits, health conditions, or personal circumstances when determining loan amounts. The only borrower-specific factor that influences the loan is age—everything else is based on program limits and current market conditions.

If the younger spouse outlives the borrowing spouse, they can remain in the home for life without making payments, so the loan starts at a lower amount to accommodate a potentially longer loan term.