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Frequently asked questions & answers about HECM for Purchase

What sources are allowed for the cash required to close?

What sources cannot be used for the cash to close?

What property types are eligible?

What requirements must the new home meet?

What are the borrower responsibilities?

  • The sale of the prior home

  • The sale of the borrower's other assets

  • The borrower's personal savings

  • Seller financing and concessions

  • Funds withdrawn from credit cards

  • A bridge loan of any kind

  • Subordinate financing

  • Single family

  • HUD-approved condos

  • Planned unit developments (PUDs)

  • Two to four unit properties (one occupied by the borrower)

  • Must be the borrower's primary residence

  • Must be occupied by the borrower within 60 days from the closing date

  • Construction must be complete, the property habitable, and a certificate of occupancy issued prior to the loan application

  • One of the borrowers continuing to live in the home

  • Keeping current on tax & insurance payments on the property

  • Maintain the property according to FHA standards

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Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Reverse Mortgage Borrowers must be age 62 or over and the home must be their primary residence. Homeowners must complete counseling with a government-certified counselor before applying. Homeowners must pay property taxes, insurance, and homeowner’s association dues. Consult a tax professional for tax consequences. A reverse mortgage is a loan and must be repaid. Loan amount based on equity in your home. Payout available in lump sum or in regular scheduled payments. Proceeds will not affect Social Security or Medicare Benefits. There’s no need to repay the loan as long as you continue to live in the house and maintain the property to FHA standards. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. AccessReverse is an Equal Opportunity Lender. NMLS#4566


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