24 CFR § 206.17 - Eligible mortgages: general.

---
identifier: "/us/cfr/t24/s206.17"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 206.17 - Eligible mortgages: general."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "206.17"
section_name: "Eligible mortgages: general."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "206"
part_name: "HOME EQUITY CONVERSION MORTGAGE INSURANCE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d)"
regulatory_source: "82 FR 7117, Jan. 19, 2017, unless otherwise noted."
cfr_part: "206"
---


# 206.17 Eligible mortgages: general.

(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.