Home Equity Conversion Mortgages
Active
- Assistance listing
- 14.183
- Agency
-
Assistant Secretary for Housing Federal Housing Commissioner
Department of Housing and Urban Development
- Grant awards
- Not on record
Program facts
- Also known as
- Reverse Mortgage Insurance
- Treasury account
-
- 86-4587-0-3-371
- More information
Program details come from SAM.gov Assistance Listings. Updated .
About this program
The Department of Housing and Urban Development's Home Equity Conversion Mortgages program (CFDA 14.183) provides mortgage insurance for FHA-approved lenders originating reverse mortgages to elderly homeowners, enabling conversion of home equity into monthly income or lines of credit.
This is a mortgage insurance program, not a traditional grant-making activity. The program does not disburse direct grant awards to borrowers or recipients in the conventional sense. Instead, HUD insures reverse mortgage loans originated by FHA-approved lending institutions, shifting credit risk to the federal government. Eligible borrowers are homeowners age 62 and older and eligible non-borrowing spouses who own one-to-four unit single-family dwellings, condominium units, planned unit developments, or FHA-compliant manufactured homes. Borrowers and non-borrowing spouses must complete HECM counseling from a HUD-approved agency before loan processing begins.
Lenders seeking to originate HECMs must be FHA-approved mortgagees meeting criteria to participate in FHA Title II mortgage insurance programs. HUD-approved Direct Endorsement Lenders process loan applications and submit them to HUD for insurance endorsement. Lenders are responsible for servicing loans and maintaining records in accordance with prudent lending practices and HUD regulations.
The source provided does not include a grant award portfolio, recent grant awards, or open grant opportunities. The program description does not indicate whether awards have been disbursed recently, typical award volume, or current solicitation status. Because this program operates as mortgage insurance rather than as a grants program in the traditional sense—funding flows through FHA-approved lenders rather than to organizational or individual applicants—the program structure differs materially from project grants, cooperative agreements, or other assistance types typical of the grants landscape. Organizations seeking to participate must be FHA-approved mortgagees; prospective borrowers work through those approved lenders.
Objective and description
- Objective
To enable elderly homeowners to convert equity in their homes to monthly streams of income or lines of credit.
- Description
Provides insurance for HUD approved lending institutions for reverse mortgages.
Eligibility
- Applicant eligibility
Eligible borrowers are persons 62 years of age or older and eligible non-borrowing spouses who are identified at the time of closing. Eligible borrowers and eligible non-borrowing spouses must complete HECM counseling from a HUD-approved agency prior to obtaining the loan. Eligible properties include single family one-to-four unit owner-occupied dwelling units, units within condominium projects and Planned Unit Developments,and manufactured homes, if they meet FHA standards.
- Beneficiary eligibility
Individuals.
- Uses of assistance
HUD insures lenders against loss on reverse mortgage loans. These loans may be used to provide monthly streams of income or lines of credit for older homeowners, 62 years of age or older.
- Use restrictions
The property securing the HECM must be occupied as the borrower's primary residence.
- 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. The mortgage may also become due and payable if the borrower fails to perform an obligation of the mortgage, such as pay taxes and hazard insurance premiums or fails to maintain the property in good condition. Due and payable provisions may be deferred for eligible non-borrowing spouses that were identified at the time of closing.
How to apply
- Preapplication coordination
The borrower and non-borrowing spouse are required to receive HECM counseling from a HUD-approved counseling agency prior to processing an application. Approved Direct Endorsement Lenders process all aspects of the loan application and submit it to HUD for insurance endorsement.
- Criteria for selecting proposals
Lenders seeking approval to originate HECMs must be FHA Approved Mortgagees meeting the criteria to participate in FHA Title II MortgageInsurance programs.
- Award procedure
See Application Procedure.
- Time to approval or disapproval
Varies.
- Appeals
Mortgagee will state the reasons for refusing an application. The applicant may reapply with the same lender or to another HUD approved lending institution.
Quick answers
What is Assistance Listing 14.183?
Assistance Listing 14.183 is Home Equity Conversion Mortgages, a federal grant program run by Assistant Secretary for Housing Federal Housing Commissioner (Department of Housing and Urban Development).
What is the CFDA number for Home Equity Conversion Mortgages?
Its CFDA number is 14.183: Assistance Listing numbers were called CFDA numbers before 2018.
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