Five Things You Should Know About an HECM

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Presentation Description

A Home Equity Conversion Mortgage is a reverse mortgage program available through the Federal Housing Administration.

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Presentation Transcript

Five Things You Should Know About an HCEM :

Five Things You Should Know About an HCEM

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A Home Equity Conversion Mortgage is a reverse mortgage program available through the Federal Housing Administration. Before you determine how you’d like to withdraw your money through an HECM loan, there are five things you need to know:   1. Your Income Does Matter   There are fees, taxes, and homeowners’ insurance payments that must be paid. Lenders will take a look at your income.

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2. You Need a Positive Credit History   Just as with any other loan, your credit history will play a big role in determining if or how much you can borrow.   3. Any Retirement Assets May Help   If you have additional streams of retirement income, such as IRAs or 401(k) accounts, your chances of getting an HECM could be improved.

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4. The FHA Offers an Added Protection   If your lender determines that you won’t be able to keep up with required payments, they may establish an account with a specific amount that will be set aside for those obligations.   5. You May Qualify Even If You Don’t Meet the Financial Criteria   There are some circumstances that may make you eligible for this type of loan even if you don’t satisfy all of the financial qualifications.

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The factors that would count as “extenuating” will vary from one borrower to another, so you’ll need to work closely with a lender to determine whether or not you qualify. If you have questions or concerns about your eligibility for an HECM in Santa Cruz, visit this website .  

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