I have always had concerns for senior loan products, because it seems there is a lot of room for those not so honest to take advantage of people. I was very impressed yesterday with the HECM program that is insured by FHA, so I wanted to share some of the info from my notes. For more detailed information contact Ann Marie at Ann Marie's presentation for the HECM program.
Using a HECM loan, you can move into your dream home with as little as 44% down, while never having to make a monthly mortgage payment. As of April 16th, 2014, here are some details of the program. Please contact me anytime with questions, to discuss the benefits of this program and how they pertain to you, or to explore his option for you or a family member. There is a HECM refinance option available too.
10 Things to know about the HECM for Purchase Program
1. Minimal Credit Requirements
2. Minimal Income Requirements (for property taxes and insurance)
3. No Employment Requirments
4. No Debt-to-Income Ratios
5. No Monthly Mortgage Payments Ever
6. You can live in the home until the last borrower vactes
7. You are not personally liable for the debt nor your heirs
8. Loan-to-Value Ratios up to 56% based on age
9. Lending limits up to $344,000 based on age.
10. Closing costs are included in mortgage
3 Steps to Qualify for a HECM
1. You must be aged 62 or older
2. HECM morgage must be for your primary residence (but you can own other homes: rentals or vacation)
3. Money brought to closing must come from asset accounts or a gift and cannot be money acquired through any debt.
What type of property can be purchased?
1. New or existing family residence
2. New or existing FHA approved condo
3. Maximum claim amount $625,000
What would Disqualify a borrower?
1. Unresolved Feder liens (tax or other)
2. Chapter 7 Bankruptcy dishcarged less than 24 months prior to application
3. Foreclosure, Short Sale, or Deed-in-Lieu within the past 3 years
4 Exising FHA mortgage
5. Property tax arrearages in the past 24 months
What is the borrower responsible for?
1. Property taxes
2. Homeowners insurance and/or homeowners association dues
3. General upkeep and maintenance of the home
Contact me anytime for more information on how the sliding scale based on age and purchase price work, as well as information on how the program works if you decide to sell the home or what happens when your heirs inherit the property.
To get started contact me to schedule our appointment with Ann Marie, S1L HECM Specialist. She'll review the program in more detail and prepare a pre-approval letter for us. We can then find your new home, negotiate a purchase contract and Ann Marie will get to work on processing your loan, which takes 30 days or less.
IF YOU HAVE QUESTIONS ABOUT SELLING YOUR HOME, BUYING OR BUILDING A NEW ONE, DON'T HESITATE TO CALL, TEXT OR EMAIL ME. 614-657-2005
My promise to my clients: I try to always remember what it is like to walk into this incredibly complex world of buying and selling with little or no knowledge of how the process works. I know that behind the door of your home and in your life there is much more going on than just your real estate transaction. I work with each person, not the house, and with the whole person, not just the issues surrounding the transaction. When I attempt to put myself in your shoes and contemplate what you are dealing with I am most effective.
The Benadum & Bumpus Team