Eligibility and amount for Home Equity Conversion Mortgage (HECM)
Q: Who is eligible for a HECM?
A: You, and any co-borrowers, must be at least 62 years old and
either own your home free and clear or have a very low outstanding mortgage
balance that can be paid off at loan closing. The home must be your principal
residence. Your home must be a single-family or two- to four-unit dwelling.
Units in condominiums or PUD's may be eligible if they are in FHA-approved
developments. You also must agree to accept mortgage counseling from a
HUD-approved counseling agency. Family members also are strongly encouraged to
attend these counseling sessions.
Q: What are the minimum and maximum amounts that I can borrow?
A: The maximum amount you can borrow is based on a HUD formula that
factors in the age of the youngest borrower, the current expected interest
rate, and the Maximum Claim Amount. The Maximum Claim Amount is the lesser of
the appraised value of your house or the maximum principal amount for a
one-family residence that can be insured by FHA in your area. The maximum
mortgage amount insured by FHA varies by geographic area and changes
frequently. Please check with SCME Mortgage Bankers, Inc. for the FHA maximum
mortgage amount for your area.
