Home Equity Conversion Mortgage program
E5804
United States government program
federal housing program
mortgage insurance program
reverse mortgage program
The Home Equity Conversion Mortgage program is the U.S. government–insured reverse mortgage initiative that allows eligible older homeowners to convert part of their home equity into cash.
Aliases (2)
Statements (48)
| Predicate | Object |
|---|---|
| instanceOf |
United States government program
→
federal housing program → mortgage insurance program → reverse mortgage program → |
| administeredBy |
Federal Housing Administration
→
U.S. Department of Housing and Urban Development → |
| appliesToPropertyType |
FHA-approved condominiums
→
single-family homes → some multi-unit properties occupied by the borrower → |
| country |
United States
→
|
| disbursementOption |
combination of payment methods
→
line of credit → lump sum → monthly payments → |
| eligibilityRequirement |
borrower must be at least 62 years old
→
borrower must have financial capacity to pay taxes and insurance → borrower must occupy the property as a principal residence → borrower must receive HUD-approved counseling → property must meet FHA standards → |
| feature |
FHA loan limits apply
→
counseling requirement → loan due when borrower dies sells or permanently leaves the home → mandatory mortgage insurance premium → multiple disbursement options → no required monthly mortgage payments → non-recourse loan → options for fixed or adjustable interest rates → principal limit based on age interest rate and home value → |
| fundingSource |
FHA mortgage insurance premiums
→
|
| hasAcronym |
HECM
→
|
| insuredBy |
Federal Housing Administration
→
|
| legalAuthority |
Section 255 of the National Housing Act
→
|
| loanType |
reverse mortgage
→
|
| marketRole |
dominant reverse mortgage product in the U.S.
→
|
| protects |
borrowers from owing more than the home value at loan maturity
→
|
| purpose |
allow older homeowners to convert home equity into cash
→
provide government insurance for reverse mortgages → |
| regulatedBy |
U.S. Department of Housing and Urban Development
→
|
| repaymentTrigger |
death of the last surviving borrower
→
failure to maintain the property → failure to pay property taxes or homeowners insurance → permanent move-out from the property → sale of the home → |
| requires |
annual mortgage insurance premium
→
ongoing payment of property taxes and homeowners insurance by borrower → upfront mortgage insurance premium → |
| securedBy |
borrower’s primary residence
→
|
| startDate |
1989
→
|
Referenced by (3)
| Subject (surface form when different) | Predicate |
|---|---|
|
Home Equity Conversion Mortgage program
("HECM")
→
|
hasAcronym |
|
Office of Housing
("Home Equity Conversion Mortgage (HECM) program")
→
|
oversees |
|
Federal Housing Administration
→
|
program |