Eligible HECM properties include: Single Family Residences, FHA Approved Condos (we'll check condo approval for you), Townhouses and some Manufactured Homes.
If the home is newly constructed it must have a Certificate of Occupancy issued prior to starting the reverse purchase transaction.
Home must be occupied within 60 days of close of escrow.
We fund #reversemortgagepurchase in all 50 states!
Types of Properties Eligible for HECM Reverse Purchase Loan
Reverse Mortgage Counseling is required
prior to Opening Escrow!!!
All borrowers and POA’s must receive HUD Reverse Mortgage Counseling
either in person or over the phone and provide the
signed counseling certificate prior to opening escrow.
Reverse Mortgage Counseling
1. Fully Executed Sales Contract (Certified copy,executed by all parties: buyers, sellers, realtors)
2. FHA Real Estate Certification
3. FHA Amendatory Clause
4. Property Condition Disclosure
5. Any inspections that are included in the contract must be provided to the lender.
Items Needed With The Purchase Contract
The seller must pay for all repairs that affect the soundness and security of the property or threaten the health and safety of the homeowner. Required repairs are those called out in the FHA appraisal, home inspection, termite inspection or any inspections called out in the contract.
There should be language in the purchase contract indicating Seller is responsible for completing and paying for any repairs prior to closing.
Repairs and the Reverse Purchase Mortgage
Verification of Money Sources for Down Payment Using HECM for Purchase
If down payment is from a bank or investment account, a verification of deposit along with original statements that cover the most recent 3 month period are required on all accounts where funds will be drawn. This is also required for the ernest money deposit.
If a gift is being used, a gift letter and evidence of the donor’s ability to provide the gift as well as evidence that funds have been transferred into the borrower’s account or a certified check or wire transfer to escrow account is required.
If funds are coming from the sale of an existing property the Final HUD-1 settlement statement from that transaction will need to be provided along with a copy of the cashiers or certified check showing borrowers name or wire transfer showing settlement agent as sender and borrower as receiver.