Home Equity Conversion Mortgages
To enable elderly homeowners to convert equity in their homes to monthly streams of income or lines of credit.
General information about this opportunity
Last Known Status
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
National Housing Act
Who is eligible to apply/benefit from this assistance?
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 FHA-approved condominium projects and Planned Unit Developments,and manufactured homes, if they meet FHA standards.
Documentation regarding the characteristics of the property and the qualifications of the mortgagor and non-borrowing spouse are assembled by the mortgagee.
What is the process for applying and being award this assistance?
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.
Approval/Disapproval Decision Time
How are proposals selected?
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
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.
Length and Time Phasing of Assistance
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: Quarterly.
Who do I contact about this opportunity?
Regional or Local Office
Persons are encouraged to contact the FHA Resource Centerfor more information at 1-800-CallFHA or 1-800-225-5342.
451 7th Street, SW
Washington, DC 20410 US
(Guaranteed/Insured Loans) FY 18$16,189,549,432.00; FY 19 est $11,000,000,000.00; FY 20 est $11,000,000,000.00; -
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
Examples of Funded Projects