Home Equity Conversion Mortgages
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To enable elderly homeowners to convert equity in their homes to monthly streams of income or lines of credit.
Eligibility
Eligible Applicants
- U.S. Federal Government
- Homeowner
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.
How to Apply
Award Procedure
See Application Procedure.
Varies.
Program details & compliance
Description
Provides insurance for HUD approved lending institutions for reverse mortgages.
Mission Categories
Primary: Property and Mortgage Insurance
Use of Funds
Allowed Uses
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.
Restrictions
The property securing the HECM must be occupied as the borrower's primary residence.
Required Documentation
Documentation regarding the characteristics of the property and the qualifications of the mortgagor and non-borrowing spouse are assembled by the mortgagee.