Home equity conversion mortgage in Mahwah, NJ is a program by the Federal Housing Administration that enables seniors to withdraw or access equity in their homes. You make a choice on whether to withdraw the money monthly or in a lump sum. You may also opt for a combination of the two withdrawal methods. HECM also enables you to acquire another property instead, if you have the down payment to make for such a purchase. You will need to pay for the closing fees and the difference between the two properties, using cash on hand.
General Requirements When Applying for HECM
• The applicant or all signatories to the property must be 62 years and above
• You must own the property or have a significantly low mortgage left that it can be offset by the funds disbursed.
• This must be year registered and your practical primary residence. In the case of an HECM purchase deal, you are required by law to move into the new house not later than six days after closing. Dates are extremely important and sensitive in this case. Missing any date may lead to accusations of breach of contract.
• Your records must indicate that you are not delinquent on any federal debt. Though the lender does not pull out your credit records, they will check other records as provided by law.
• Mandatory participation in an HECM counseling session. The sessions are provided by counselors who are approved by federal authorities. The aim of these consultative counseling sessions is to unbiased information about the program. These are the people to ask about rates, repayments, ownership, legal rights, and responsibilities, etc. The government wants to make sure that you are making an informed decision.
Areas to be Cautious About
It is common to have a lender pressuring you to take the loan with him. Do not bow to this pressure. Evaluate different packages to get the best for your case.
Complete the counseling session before engaging an escrow service provider or submitting your application. This is the only way to be sure that you understand the decision you have made.
There are fees to be paid by the buyer which must be included in the agreement. They include the owner title policy, the lender title policy, appraisal, home inspection and warrantee, among others.
Most of this information can be obtained during the HECM counseling session. Ask all the questions on your mind to ensure that you are sure of the deal you are about to enter, and compare offers by different lenders before making a decision. Before making a decision, understand what home equity conversion mortgage in Mahwah, NJ entails.
Longbridge Financial, LLC. offers all the details you require about the mortgage and how to reap maximum benefits.