Are the HECM Term and Tenure payment options subject to the First 12-Month Disbursement Limit?

Yes, the Tenure and Term monthly payment options are subject to the First 12-Month Disbursement Limit. Mortgagees must ensure Tenure and Term monthly payments made to the borrower during the First 12-Month Disbursement Period do not exceed the Initial Disbursement Limit.
For more information see Mortgagee Letter 14-21 at

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-04636