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Home Equity Conversion Mortgages (HECM)

undefined Home Equity Conversion Mortgages (HECM)?


The Home Equity Conversion Mortgage (HECM) is the Federal Housing Administration's (FHA) reverse mortgage program which enables borrowers to withdraw some of the equity in their home. The borrower chooses how to withdraw their funds, whether in a fixed monthly amount or a line of credit or a combination of both. The borrower can also use a HECM to purchase a primary residence if they are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property they are purchasing.

The Home Equity Conversion Mortgage (HECM) is the Federal Housing Administration's (FHA) reverse mortgage program which enables borrowers to withdraw some of the equity in their home. The borrower chooses how to withdraw their funds, whether in a fixed monthly amount or a line of credit or a combination of both. The borrower can also use a HECM to purchase a primary residence if they are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property they are purchasing.

undefined Home Equity Conversion Mortgages (HECM)?


The borrower must:

  • Be 62 years of age or older
  • Own the property outright or have a small mortgage balance
  • Occupy the property as their principal residence
  • Not be delinquent on any federal debt
  • Participate in a consumer information session given by an approved HECM counselor

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single family home or 1-4 unit home with one unit occupied by the borrower
  • A condominium unit in a HUD-approved condominium project or a single condominium unit approved by HUD in a non-HUD-approved condominium project
  • Manufactured home that meets FHA requirements

undefined Home Equity Conversion Mortgages (HECM)?


To obtain a HUD Home Equity Conversion Mortgage, contact a HUD-approved HECM lender.


To read more about this program, go to:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmhome

To contact a HUD Housing Counseling agency, go to the FHA search website.

To contact the Federal Housing Administration (FHA), please use one of the following methods:

Visit:
The FHA Resource Center

Write to:
U.S. Department of Housing and Urban Development
Federal Housing Administration
451 Seventh St., SW
Washington, D.C. 20410

Call:
1-800-CALL-FHA (1-800-225-5342) or via Federal Information Relay Service (w/TTY): 1-800-877-8339

Email:
answers@hud.gov

1-800-225-5342