Non-Borrowing Spouse and Dependents
Investments and Savings
It is possible we will need to use the net income (i.e. income less financial obligations) of your spouse who is not on the home’s title, or possibly ascertain the net income of one of your dependents living in the home with you to help qualify you for the HECM. If required, the HECM WIZARD […]
Monthly Financial Expense
It’s a good idea to have the most current balances of any savings or retirement accounts on hand in case we need this information to help you qualify
The lender will need to know the monthly financial obligation expense of all the borrowers. So make sure you have a note of payments you or your spouse on title make on alimony, car, store card and credit card debt, judgment payments, bankruptcy payments and income tax/FICA you did not net out of compensation.
Know your monthly income from all sources for yourself and anyone else on title, aged 62 years or older. If your spouse is not on title, it would be useful to know his/her income as well.
If you know you need major repairs, you might consider getting an estimate or using Home Advisor’s True Cost Guide. Necessary repairs will be completed with funds withheld from the HECM proceeds. If repairs exceed 15% of the home value, the lender may require the repairs be completed before approving the HECM
Existing Mortgages and Mortgage Payments
Find your latest annual property tax and property insurance invoices (or use the amount withheld by your mortgage company (if they pay your tax and insurance) and note the amounts. Also, if you pay HOA or a land lease, note those annual amounts as well
If you have an existing mortgage, find the latest mortgage statement and note the balance and the payment. Do this for all liens on the property, such as HELOCs or even past due debts you are paying off but are secured by your home.
What protections does a HECM come with?
Go to 3 home value sites and average the result. Trulia, Zillow, Eppraisal, Yahoo, Reply, and HomeGain are all good places to go. Maybe easier is to ask a local realtor for a quick sales estimate of your home value.
What can I use the proceeds of a HECM for?
• Counseling: You must be counseled by an independent financial counselor about the risks and benefits of taking a HECM before a lender can start to process your application. Like any financial product, if a HECM is not suitable for your circumstance, the result may be a great deal of stress and unhappiness. Very few products […]
If you now owe any money on a debt against your home or any other Federal obligations, you would have to payoff those amounts to get a HECM.You could use money from the HECM to do that. Any remaining funds you can use as you wish. There are no restrictions. The proceeds from a HECM […]