An HECM loan in Mahwah, New Jersey is attractive because it allows you to access equity on your property while still holding ownership. The package is only available to seniors, but there are conditions to be fulfilled. How eligible are you for this loan and how much will you get?
• Age. This type of loan is only available to seniors. The applicant must be 62 years or older. In case the application is being made by more than one party due to joint ownership of the property, both applicants must be 62 years or more. In fact, older people get a higher amount on their properties.
• The applicant must be the legal owner of the property and live in it as the primary residence. An application cannot be made on behalf of another party. Documents on record must indicate that you are the owner of the property and thus hold all the right. It must also not be a spare residence. You must be living in the house, which is why it is a financing option of the last resort. In fact, the day you leave the premise will mark the expiry of the contract. You will surrender ownership and receive the balance of equity.
• Attendance of HECM counseling session is mandatory. To qualify for this loan, you must attend a counseling and information session. The session is by appointed consultants who will furnish you with all the details you need about the loan. The aim is to ensure that you make an informed decision and avoid being misled by lenders.
• There are FHA property standards to be met. FHA standards are aimed at protecting the government from guarantee homes that are not worthy. The standards regard marketability, durability, and safety. They include having own utility, the site being appropriate for such a property, high standards during constructions, and use of appropriate materials. The property should not have an existing mortgage. In case it has such a mortgage or loan, it will be repaid first before the equity is disbursed.
Several factors affect the amount of money you get upon application. Younger applicants get a smaller amount compared to older ones for the same property. In the case of a joint application, the age of the youngest signatory will be considered. The existing interest rates in the market will affect the eventual amount. The lesser between the FHA insurance figure and the appraised value will also determine the amount. Work with a specialist in HECM loans to get the best deal on your property. A specialist in HECM loan in Mahwah, New Jersey will assist you to evaluate the application before submitting it.