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
Program Number
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Housing-Federal Housing Commissioner
Type(s) of Assistance Offered
Program Accomplishments
Not Applicable.
National Housing Act.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Eligible borrowers are persons 62 years of age or older and 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.
Beneficiary Eligibility
Documentation regarding the characteristics of the property and the qualifications of the mortgagor and non-borrowing spouse are assembled by the mortgagee. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. The borrower and non-borrowing spouse arerequired to receive HECM counseling from a HUD-approved counseling agency prior to application. Approved Direct Endorsement Lenders process all aspects of the loan application and submit it to HUD for insurance endorsement.
Award Procedure
See Application Procedure.
Not Applicable.
Approval/Disapproval Decision Time
Mortgagee will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.
Not Applicable.
How are proposals selected?
Not Applicable.
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?
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.
Other Assistance Considerations
Formula and Matching Requirements
This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
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
None. Persons are encouraged to contact the FHA Resource Centerfor more information at 1-800-CallFHA or 1-800-225-5342.
Headquarters Office
Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: answers@hud.gov Phone: (800) 225-5342
Website Address
Financial Information
Account Identification
(Sale, Exchange, or Donation of Property and Goods) FY 13 $14,775,707,235; FY 14 est $13,493,000,000; and FY 15 est $15,860,000,000
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines and Literature
Not Applicable.
Examples of Funded Projects
Not Applicable.


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