Can I purchase a home with a HECM loan?

Effective for case numbers assigned on or after January 1, 2009, the HECM program is available for principal residence purchase transactions.

The additional provisions set forth in Mortgagee Letter (ML) 2009-11 must be also be satisfied.

For additional information see:  ML 2009-11 available at:      https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
Federal Register 24 CFR §206.45, §206.47, §206.52 available at: 

https://www.federalregister.gov/documents/2017/01/19/2017-01044/federal-housing-administration-strengthening-the-home-equity-conversion-mortgage-program 


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01973