- All property charges are current and there are no property tax arrearages in the prior 24 months;
- HOA, condominium, or PUD fees are current and there were no arrearages in the prior 24 months.
Where the mortgagor owns no other real estate, and has changed his or her principal residence within the last 24 months, the mortgagee must review the property charge payment history for the current principal residence and the prior principal residence for a combined 24 months
If homeowners/hazard insurance and flood insurance (if applicable) were not in place for the previous 12 months, mortgagors must obtain coverage and prepay for 12 months at or before mortgage closing.
For additional information see Mortgagee Letter 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide, Section 2.28 at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee