What the heck is a HECM?
- Tina Martin
- Apr 1, 2022
- 1 min read
If you could significantly INCREASE your new home purchasing power and have NO monthly mortgage payment, by taking advantage of an FHA-insured H4P ( HECM 4 Purchase ) loan Program, why wouldn't you?
If you are 62 years old or older you don't have to take money out of your retirement plan and jeopardize it; and you especially don't have to pay cash if you can qualify for the HECM Purchase Program - H4P Program.
The seller of your new home can pay for some of the closing costs and third party fees, including Home Warranties, Inspections, transaction costs, (transfer tax, real estate commissions, title search, etc.) if they are reasonable and customary for the local market. Lender concessions are not allowed on H4P (seller credits, lender credits, builder incentives, loan discount points, interest rate buy downs, down payment assistance).
Conveying appliances (like fridge, stove, permanently affixed microwave, dishwasher, washing machine, dryer are allowed. No personal property (or chattel) is allowed to convey.
Financing should reference "FHA / HECM." You cannot use a credit card or any other form of borrowed funds for the Down Payment or earnest money deposit.
H4P transactions must provide you a HUD-1 Settlement Statement of Costs - Closing Disclosures are not acceptable.
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