source:
  type: guide
  id: hud-4000-1-ii-d-disbursement-of-hecm-proceeds
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement
    of HECM Proceeds (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement
    of HECM Proceeds (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-d-disbursement-of-hecm-proceeds-full
  canonical_id: hud-4000-1-ii-d-disbursement-of-hecm-proceeds-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement
    of HECM Proceeds (04/29/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement
      of HECM Proceeds (04/29/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: d. Disbursement of HECM Proceeds (04/29/2024) The Mortgagee must
      verify that HECM proceeds are disbursed in the proper amount to the Borrower
      or to the debt holder. At closing, the HECM proceeds disbursed by the Mortgagee
      and any funds received from, or on behalf of, the Borrower must equal the total
      required for closing. The sum of all advances permitted under the HECM must
      not exceed the Principal Limit. The Borrower may bring available funds to closing
      to bring the sum of all anticipated advances within the Principal Limit. See
      Insufficient HECM Proceeds. i. Insufficient HECM Proceeds If there are insufficient
      funds for Disbursement, the Mortgagee must ensure the Borrower brings funds
      to closing to satisfy all obligations in excess of the Initial Disbursement
      Limit or Borrower’s Advance, which cannot exceed the Principal Limit. ii. Required
      Documentation The Mortgagee must obtain a signed and dated Payment Plan Exhibit
      from the Borrower. 7. Post-closing and Endorsement
  judgment: false
