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HomeEquity Conversion Mortgage
The eligibility requirements for a HECM are quite simple and do not impose any minimum or maximum limits on income:
• You, and any of your co-borrowers, must be at least 62 years old and either own your home free and clear, or have a relatively low remaining mortgage balance and occupy the property as your principal residence. If you have a low remaining mortgage balance, it must be paid off to obtain a HECM, but this amount can be financed as part of your HECM by taking a cash draw at closing and paying off your present lender. All HECM borrowers must have received reverse mortgage counseling from a HUD-approved housing counseling agency. These sessions may beconducted with a power of attorney or court-appointed conservator/guardian if the borrower lacks legal competency.
• Your property must be either a one- to four-unit dwelling or a unit in a condominium or planned unit development (PUD) project. Leasehold properties are eligible if they meet HUD and Fannie Mae guidelines. The property need not be debt-free for the borrower to be eligible, but the indebtedness on an existing lien must be paid off at closing. Manufactured housing and units in condominiums and PUDs may be eligible if they are in FHA-approved developments. HECM loans secured by property held in an inter vivos trust, or living trust, are considered eligible if the trust and the borrowers meet HUD requirements. Your lender or nonprofit counselor can help you determine whether a particular trust agreement is eligible.
• You must agree to receive counseling before the HECM application is processed. Counseling will be provided by HUD-approved housing counseling agencies and will focus on the different types of home equity conversion mortgages available, the suitability of a HECM for the borrower, and the alternatives to a HECM.
In all circumstances, the borrower must receive reverse mortgage counseling. You will receive a Certificate of HECM Counseling, which is valid for 180 days. When more than one homeowner is applying for the loan, as long as at least one homeowner’s signature on the certificate is within the 180-day expiration period, the lender may consider the counseling certificate as being valid for all borrowers on the loan. In addition, those borrowers that received the counseling more than 180 days previously, but do not believe that a second session would be useful, may also waive the expiration date in writing.
Read below more on Home Equity Conversion Mortgage
Mortgage Guide – Understanding Home Equity Conversion Mortgage
Mortgage Guide – Why Choose Home Equity Conversion Mortgage
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Mortgage Guide – Do you qualify for Home Equity Conversion Mortgage is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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