Home Equity Conversion Mortgages

 

To enable elderly homeowners to convert equity in their homes to monthly streams of income or lines of credit.

Active 14.183 Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development F - Guaranteed/Insured Loans Not applicable. National Housing, Part Title II, Section 255 Eligible borrowers are persons 62 years of age or older and eligible non-borrowing spouses who are identified at the time of closing. Eligible borrowers and eligible non-borrowing spouses must complete HECM counseling from a HUD-approved agency prior to obtaining the loan. Eligible properties include single family one-to-four unit owner-occupied dwelling units, units within condominium projects and Planned Unit Developments,and manufactured homes, if they meet FHA standards. Individuals. Documentation regarding the characteristics of the property and the qualifications of the mortgagor and non-borrowing spouse are assembled by the mortgagee. Preapplication coordination is required. The borrower and non-borrowing spouse are required to receive HECM counseling from a HUD-approved counseling agency prior to processing an application. Approved Direct Endorsement Lenders process all aspects of the loan application and submit it to HUD for insurance endorsement. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The borrower and non-borrowing spouse are required to receive HECM counseling from a HUD-approved counseling agency prior to processing an application. Approved Direct Endorsement Lenders process all aspects of the loan application and submit it to HUD for insurance endorsement. See Application Procedure. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. HUD insures lenders against loss on reverse mortgage loans. These loans may be used to provide monthly streams of income or lines of credit for older homeowners, 62 years of age or older. Not applicable. Not applicable. Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. The mortgage has no specified term. The mortgage is due and payable at the death of the borrower(s) or if the borrower sells, conveys, or moves from the property. The mortgage may also become due and payable if the borrower fails to perform an obligation of the mortgage, such as pay taxes and hazard insurance premiums or fails to maintain the property in good condition. Due and payable provisions may be deferred for eligible non-borrowing spouses that were identified at the time of closing. Method of awarding/releasing assistance: Letter. Persons are encouraged to contact the FHA Resource Centerfor more information at 1-800-CallFHA or 1-800-225-5342. Kevin Stevens
451 7th Street, SW
Washington, DC 20410 US
answers@hud.gov
Phone: (800) 225-5342 https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome 86-4587-0-3-371 (Guaranteed/Insured Loans) FY 22$32,123,000.00; FY 23 est $16,187,000.00; FY 24 est $26,250,000.00; FY 21$21,330,364,981.00; FY 20$2,106,573.00; FY 19$10,858,868,790.00; FY 18$16,189,549,432.00; - The maximum funding available varies based upon principal limit factors and the maximum claim amount. The principal limit factors vary based upon borrower age and expected interest rate. The maximum claim amount is set annually. Not applicable. Not applicable.