Revised FHA guidelines affect HECM loan limits and closing costs. This program is monitored to ensure senior financial relief.
FHA Guidelines for HECM Senior Borrowers
HECM, Home Equity Conversion Mortgage, is an FHA program that enables older homeowners to live in their homes until they make the decision to leave. The guidelines have changed that extends this type of mortgage for loans with a $625,000 limit. The property loan limits are higher than this in Alaska, Hawaii, Guam, and the Virgin Islands where construction costs are considerably higher than in the continental United States. The government wants this type of mortgage to be far reaching to include a large number of deserving senior homeowners.
Qualifying for an HECM
Seniors homeowners who have reached the age of 62 are eligible to apply for a Home Equity Conversion Loan. The guidelines have changed since its inception, and for the most current guidelines, interested seniors may contact a HECM counselor to discuss the conditions for qualifying for this type of home loan. Online mortgage calculators are also available at HECM websites to help consumers see if they can preliminarily qualify. When a counselor has been contacted the requirements will be clearly outlined. It is required that the property owners must remain in their home as their primary residence until they pass away or choose to leave the home. Property taxes, insurance, and home repairs are the responsibility of the homeowners while in a HECM. There are no eligibility restrictions with credit scores or income for senior property owners.
Advantages of an HECM
Senior homeowners can access the equity in their home and use these funds to subsidize their years of retirement. Many senior citizens are ill prepared for retirement and enjoy the opportunity to enlist in this type of financial relief mortgage program.
Related posts: