EducationMoney.com
Home State Money Federal Money Private Money Low Cost Colleges EducationMoney Store
 
Link to Us
The FAFSA application is provided to you by the U.S. Department of Education (DOE) and is ALWAYS free!

Select a Category
Animal Conservation
Arts & Humanities
Business
Child Services
Disabled
Education
Employment and Labor
Housing
Immigration & Refugees
Minorities
Native Americans
Science & Medical Research
Veterans
Volunteers
Youth At Risk
How to Apply for Federal Assistance
Writing a Winning Grant Proposal
Understanding the Federal Program Descriptions

Content provided by the Catalog of Federal Domestic Assistance
14.183 Home Equity Conversion Mortgages

FEDERAL AGENCY:

HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

National Housing Act, as amended; Housing and Community Development Act of 1987, Section 417, Public Law 100-242, 12 U.S.C. 1715z-20.
OBJECTIVES: Click here for help!
To enable elderly homeowners to convert equity in their homes to monthly streams of income or except for Texas - lines of credit.

TYPES OF ASSISTANCE:

Guaranteed/Insured Loans.
Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

HUD insures lenders against loss on reverse mortgage loans. These loans may be used to provide monthly streams of income or except for Texas - lines of credit for older homeowners, 62 years of age or older.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Eligible borrowers are persons 62 years of age or older. Eligible properties include Single Family one-to-four unit owner-occupied dwelling units, condominiums and Planned Unit Developments, if they meet FHA standards, and manufactured homes, if they meet FHA standards.

Beneficiary Eligibility:   Individuals.

Credentials/Documentation:   Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee. This program is excluded from coverage under OMB Circular No. A-87.

back to top
APPLICATION AND AWARD PROCESS:
Pre-application Coordination:   This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.

Application Procedure:   The borrower is required to receive counseling from a HUD-approved counseling agency prior to application. Approved Direct Endorsement Lenders process all aspects of the loan application and submit it to HUD for insurance endorsement. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:   See Application Procedure.

Deadlines:   None.

Range of Approval/Disapproval Time:   Varies.

Appeals:   Mortgagee will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender.

Renewals:   Not applicable.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Payments that a borrower can receive from a reverse mortgage are determined by calculating the principle limit. This is determined at closing using a factor corresponding to the age of the youngest borrower, the interest rate, and the value of the home. Mortgage insurance premiums will be collected including: 1) an up-front premium which may be financed and 2) a periodic premium which is paid monthly. The loan origination charge by the mortgagee varies, but the financed portion may not exceed the greater of 2 percent of maximum claim amount or $2,000. Mortgagors may be charged appraisal and inspection fees in accordance with fee schedules established by HUD. These charges may also be financed.

Length and Time Phasing of Assistance:   The mortgage has no specified term. The mortgage is due and payable at the death of the borrower(s) or if the borrower sells, conveys, or moves from the property.

POST ASSISTANCE REQUIREMENTS:

Reports:   Defaults in meeting the mortgage terms must be reported. All approved mortgagees at any time upon request by HUD must furnish a copy of their latest financial statement.

Audits:   The Department of Housing and Urban Development reserves the right to audit the account of the mortgagee to determine its compliance and conformance with HUD regulations and standards.

Records:   Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.

FINANCIAL INFORMATION:

Account Identification:   86-4077-0-3-371.

Obligations:   (Mortgages insured) Reported under program 14.133.

Range and Average of Financial Assistance:  
No Data Available.

back to top
PROGRAM ACCOMPLISHMENTS:
In fiscal year 2001, 7,781 loans were insured and the Departments expects to insure approximately 8,000 loans in fiscal year 2002.

REGULATIONS, GUIDELINES, AND LITERATURE:

"Options for Elderly Homeowners: A Guide to Reserve Mortgages and Their Alternatives," no charge; 24 CFR 200 and 206.

INFORMATION CONTACTS:

Regional or Local Office:   None. Persons are encouraged to contact the FHA Resource Centerfor more information at 1-800-CallFHA or 1-800-225-5342.

Headquarters Office:   Wanda L. Sampedro, 451 7th Street, SW, Washington, District of Columbia 20410 Email: answers@hud.gov Phone: (800) 225-5342

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

Click here for some free tips!


Select a Program Category:

State Money | Federal Money | Private Money | Low Cost Colleges |
Home | How to Apply for Federal Assistance | Writing a Winning Grant Proposal |
Understanding the Federal Program Descriptions