HECM LATEST 2026 PRACTICE EXAM QUESTIONS AND
SOLUTIONS RATED A+
✔✔PLL - ✔✔Grocery mount a borrower will qualify for. A.k.a. benefit amount, loan
amount
✔✔Mandatory obligations - ✔✔The fees liens and charges incurred in connection with
the origination of an HTC M.
Paid at closing
✔✔Principal residence - ✔✔In residency minimum of 183 days a year
✔✔Utilization Limit - ✔✔The portion of the principal loan which the borrower can access
within the first 12 months disbursement.
✔✔Condos - ✔✔Must be FHA approved to qualify for a TCM
✔✔Well and septic distance from well to properly - ✔✔10 feet FHA no exceptions
✔✔Well and septic distance from septic the property line - ✔✔10 feet no exceptions
✔✔Well and septic distance from well to septic tank - ✔✔50 feet no exceptions
✔✔ To Qualify dor HECM - ✔✔Borrower no cash out
Owner occupied
Sixty two
Sixty two
✔✔To Complete HECM Loan - ✔✔Borrower Council...
All Liens Paid Off...
Complete Conditions Deemed by underwriter
✔✔How does FHA Benefit borrower - ✔✔Stabilizes and insures loan
✔✔FHA Non Recourse - ✔✔Home is only asset used to pay loan...
Heirs do not inherit unwanted debt...
Borrower can't owe more than house appraisal
If bank defaults gov't guarantees
✔✔MIP - ✔✔Charged monthly and at closing
SOLUTIONS RATED A+
✔✔PLL - ✔✔Grocery mount a borrower will qualify for. A.k.a. benefit amount, loan
amount
✔✔Mandatory obligations - ✔✔The fees liens and charges incurred in connection with
the origination of an HTC M.
Paid at closing
✔✔Principal residence - ✔✔In residency minimum of 183 days a year
✔✔Utilization Limit - ✔✔The portion of the principal loan which the borrower can access
within the first 12 months disbursement.
✔✔Condos - ✔✔Must be FHA approved to qualify for a TCM
✔✔Well and septic distance from well to properly - ✔✔10 feet FHA no exceptions
✔✔Well and septic distance from septic the property line - ✔✔10 feet no exceptions
✔✔Well and septic distance from well to septic tank - ✔✔50 feet no exceptions
✔✔ To Qualify dor HECM - ✔✔Borrower no cash out
Owner occupied
Sixty two
Sixty two
✔✔To Complete HECM Loan - ✔✔Borrower Council...
All Liens Paid Off...
Complete Conditions Deemed by underwriter
✔✔How does FHA Benefit borrower - ✔✔Stabilizes and insures loan
✔✔FHA Non Recourse - ✔✔Home is only asset used to pay loan...
Heirs do not inherit unwanted debt...
Borrower can't owe more than house appraisal
If bank defaults gov't guarantees
✔✔MIP - ✔✔Charged monthly and at closing
