Government Grants
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Home Owner Programs
Federal Programs
About Us
Home Equity Conversion Mortgages
The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
Persons are encouraged to contact the FHA Resource Centerfor more information at 1-800-CallFHA or 1-800-225-5342.
Program Accomplishments
Not Applicable.
Uses and Use Restrictions
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.
Eligibility Requirements
Applicant Eligibility
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.
Beneficiary Eligibility
Individuals.
Credentials/Documentation
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 2 CFR 200, Subpart E - Cost Principles.
Aplication and Award Process
Preapplication Coordination
Preapplication coordination is required.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
12372.
Application Procedures
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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.
Award Procedures
See Application Procedure.
Deadlines
Not Applicable.
Authorization
National Housing Act.
Range of Approval/Disapproval Time
Varies.
Appeals
Mortgagee will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.
Renewals
Not Applicable.
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.
Post Assistance Requirements
Reports
Not Applicable.
Audits
Not Applicable.
Records
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Financial Information
Account Identification
86-4587-0-3-371.
Obigations
(Sale, Exchange, or Donation of Property and Goods) FY 15 $15,988,470,296; FY 16 est $15,137,995,710; and FY 17 est $18,468,953,952
Range and Average of Financial Assistance
No Data Available.
Regulations, Guidelines, and Literature
Not Applicable.
Information Contacts
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
Criteria for Selecting Proposals
Not Applicable.
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