Issue 5.13
Absolutely! The opportunity for a senior, 62 years or older, to buy a home using a HECM mortgage will be available for the unforeseen future. Until we see evidence from The Housing and Urban Development (Federal agency which regulates HECM loans) indicating anything different, We will proceed to take applications and close these loans at an increased pace. The increase in the purchase option is one factor. As Realtors become more aware of the potential increase in business, the word is spreading through the industry, which assists in the overall marketing of the HECM purchase.
The options for refinancing are still in full swing as well. Until HUD makes official announcement of changes to the HECM everything will continue as business as usual. Any potential change will also be made official on the HUD website as well. Once HUD makes changes, (if and when), we will continue to make the public aware utilizing articles like this one.
The first step in preparation of a HECM requires the following: 1. Must be 62 or older (both parties if applicable) 2. Inquire with qualified loan representative /Loan Officer 3. Take 1 hour counseling session with HUD certified disinterested party (list provided by lender) you will now be eligible to move forward with the application which fits your personal circumstance. Your loan officer should walk you through all qualifications and the actual process. Typical HECM can be closed within 20-30 days from application date. This time line may vary based on the loan volume of the particular lender at the time of the application.
In summary, the HECM loan is alive and well and no need for panic if you are investigating the loan for your own financial future.
For all details on the Reverse Mortgage/HECM or specifics about the possible upcoming changes, please contact Scott Gibson at Axiom Financial 435-656-5155 or 435-767-1092.