§ 206.17 Eligible mortgages: general.

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Title 24 CFR: Housing and Urban Development › Chapter II: OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT › Part 206: HOME EQUITY CONVERSION MORTGAGE INSURANCE › Subpart B: Eligibility; Endorsement › § 206.17: § 206.17 Eligible mortgages: general.

This text was captured on Aug 14, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

(a) [Reserved]

(b)

Interest rate and payment options.

A HECM shall provide for 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 tenure (§ 206.19(b)), the line of credit (§ 206.19(c)), or a modified term or modified tenure (§ 206.19(d)) payment option, subject to a later change in accordance with § 206.26.

(c)

Shared appreciation.

A mortgage may provide for shared appreciation in accordance with § 206.23.

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