---
kind: "section"
citation: "24 C.F.R. § 206.17"
title: "24"
number: "206.17"
heading: "Eligible mortgages: general."
url: "https://uscodex.org/cfr/24/206.17"
---

# §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](/cfr/24/206.21.md).
  - (1) Fixed interest rate mortgages shall use the Single Lump Sum payment option ([§ 206.19(e)](/cfr/24/206.19.md?p=e)).
  - (2) Adjustable interest rate mortgages shall initially provide for the term ([§ 206.19(a)](/cfr/24/206.19.md?p=a)), the tenure ([§ 206.19(b)](/cfr/24/206.19.md?p=b)), the line of credit ([§ 206.19(c)](/cfr/24/206.19.md?p=c)), or a modified term or modified tenure ([§ 206.19(d)](/cfr/24/206.19.md?p=d)) payment option, subject to a later change in accordance with [§ 206.26](/cfr/24/206.26.md).
- (c) **Shared appreciation.** A mortgage may provide for shared appreciation in accordance with [§ 206.23](/cfr/24/206.23.md).

## Notes

### Authority

Authority: 12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d)

### Source

Source: 82 FR 7117, Jan. 19, 2017, unless otherwise noted.