Reverse Mortgage Programs · U.S. Dept of Housing and Urban Development

Reverse Mortgage Programs

Basic Eligibility Requirements

Are borrowers allowed to choose the type of interest rate and payment option in a HECM transaction?

Are HOA, PUD, condo fee, and other assessments included in a Fully-Funded Life Expectancy Set-Aside for a Home Equity Conversion Mortgage (HECM)?

As a senior citizen how can I convert the equity in my home into income?

Can a borrower using the HECM purchase program have more than one FHA-insured loan?

Can a delinquent Federal non-tax debt be paid off at closing using HECM proceeds?

Can I get a HECM loan if my property is held in a life estate?

Can I purchase a home with a HECM loan?

Can Unused Repair Set-Aside Funds for a Fixed Rate HECM be made available to the borrower?

Do collection accounts have to be paid off to be eligible for a HECM?

Do the changes to Non-Borrowing Spouse requirements described in ML 14-07 affect HECM documents?

+ More

Counseling Requirements

Can a HECM borrower be charged for housing counseling services?

Can I process the loan application before my borrowers receive HECM counseling?

Can potential HECM applicants access the HECM Counselor Roster?

How do these changes impact borrowers currently in the process of getting a Home Equity Conversion Mortgage (HECM)?

How may the HECM counseling fee be paid?

How will the new changes to the Home Equity Conversion Mortgage (HECM) affect new borrowers?

Is HECM borrower counseling required for a HECM purchase loan?

What are the basic counseling requirements for an FHA reverse mortgage?

When HECM counseling is completed by telephone may the counselor fax the certificate to the lender?

Where can I find information on HECM Counseling Requirements?

+ More

HECM Collateral Assessment

Are there penalties if a Mortgagee forgets to notify HUD/FHA that they have uploaded their Home Equity Conversion Mortgage (HECM) appraisal in Electronic Appraisal Delvery (EAD) Portal and FHA Connection?

Can a Mortgagee obtain two concurrent Home Equity Conversion Mortgage (HECM) appraisals before the FHA collateral risk assessment, in anticipation of a requirement for a second appraisal?

If a HECM Collateral Risk Assessment is completed will an additional appraisal be required under the property flipping rules?

What if there are differences between the first and second Home Equity Conversion Mortgage (HECM) appraisals regarding required repairs for Minimum Property Requirements (MPR)?

What is the Collateral Risk Assessment Process for a Home Equity Conversion Mortgage (HECM)?

What is the effective date of the requirements for Home Equity Conversion Mortgages (HECM) in Mortgagee Letter 2018-06?

What is the purpose of issuing the Home Equity Conversion Mortgage (HECM) guidance contained in Mortgagee Letter 2018-06?

What will the Mortgagee or Borrower pay for FHA’s Home Equity Conversion Mortgage (HECM) Collateral Risk Assessment Process?

When a second appraisal is required on a Home Equity Conversion Mortgage (HECM) which appraisal is used to calculate the maximum claim amount?

Will a second appraisal be required on any Home Equity Conversion Mortgages (HECM) case numbers assigned prior to October 1, 2018?

+ More

HECM Servicing

Processing Guidelines

Are borrowers with delinquent federal tax debt or tax liens eligible for a Home Equity Conversion Mortgage (HECM)?

Are contingent liabilities included in the expense analysis for a HECM Borrower?

Are disputed derogatory credit accounts included in the expense analysis for a Home Equity Conversion Mortgage (HECM) Borrower?

Are existing HECM borrowers eligible for a reduction of the UFMIP on a HECM purchase?

Are Private Savings Clubs an acceptable source of funds for a HECM borrower?

Are property repairs required prior to closing on a HECM purchase loan?

Are the expenses of an eligible Non-Borrowing Spouse or Other Non-Borrowing Household Member included in the Home Equity Conversion Mortgage (HECM) analysis?

Are there other property or disclosure requirements that must be satisfied in a HECM purchase?

Can a borrower lock in the interest rate on HECM mortgages?

Can a HECM borrower's government assistance non-cash benefits be counted as qualifying income?

+ More

Refinance Transactions

Can I refinance a HECM loan to another HECM loan?

When is the Anti-churning Disclosure required?