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 Code of Federal Regulations (Last Updated: November 8, 2024)
 Title 24 - Housing and Urban Development
 Subtitle B - Regulations Relating to Housing and Urban Development
 Chapter II - Office of Assistant Secretary for Housing - Federal Housing Commissioner, Department of Housing and Urban Development
 SubChapter B - Mortgage and Loan Insurance Programs Under National Housing Act and Other Authorities
 Part 206 - Home Equity Conversion Mortgage Insurance
 Subpart B - Eligibility; Endorsement
 Eligible Mortgages

§ 206.17 - Eligible mortgages: general.  

Latest version.

  • § 206.17 GeneralEligible mortgages: general.

    (a)Payment [Reserved]

    (b) Interest rate and payment options. A

    mortgage

    HECM shall

    initially

    provide for

    the tenure

    either fixed or adjustable interest rates in accordance with § 206.21.

    (1) Fixed interest rate mortgages shall use the Single Lump Sum payment option (§ 206.19(e)).

    (2) Adjustable interest rate mortgages shall initially provide for the term (§ 206.19(a)), the

    term payment option

    tenure (§ 206.19(b)),

    or

    the line of credit

    payment option

    (§ 206.19(c)), or a

    combination as provided in

    modified term or modified tenure (§ 206.

    25

    19(d)) payment option, subject to a later change in accordance with § 206.26.

    (

    b) Interest rate. A mortgage shall provide for either fixed or adjustable interest rates in accordance with § 206.21.

    (c) Shared appreciation. A mortgage may provide for shared appreciation in accordance with § 206.23.

    [54 FR 24833, June 9, 1989, as amended at 61 FR 36266, July 9, 1996]