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HECM for Purchase

Borrower and Property Eligibility Requirements

To be eligible for a HECM for Purchase loan:

  • All borrowers must be 62 years or older.

  • Purchased home must be primary residence occupied within 60 days of closing.

  • Property must be a single family home, 2-4 unit dwelling or an FHA approved condo.

  • HUD Minimum Property standards apply to the purchased property.

  • The difference between the purchase price of the new home plus closing costs and the HECM loan proceeds must be paid in cash from qualifying sources such as the sale of a prior residence, borrowers' other assets, or savings.

  • Borrowers must complete a HUD approved counseling session.

  • Borrowers are allowed only one FHA loan. If they have another FHA loan in place, it must be satisfied before they are eligible for a HECM loan.

  • For HECM purchases, the borrowers cannot have had a foreclosure or short sale within the last three years.

  • If HECM purchase borrowers own other properties, they must qualify sufficient income to maintain all properties, including the primary residence they are purchasing.

  • HECM purchase borrowers are subject to HECM Financial Assessment guidelines.

More information is available at HECM for Purchase Overview.
 
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A Non-Recourse Loan
It's Your Money
HECM for Purchase

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First Federal
Savings Bank
NMLS 402963
1880 S Eagle Rd
Meridian, ID 83642

dcook@bankfirstfed.com
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Home | HECM Basics | 12 Facts | Borrower Qualifications | Loan Process | Financial Assessment
Who Owns the Home? | Who Owns the Equity? | When is the Loan Due? | A Non-Recourse Loan | It's Your Money
| HECM for Purchase |
Copyright© 2019 Doug Cook FDIC & Equal Housing Lender Logo
HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home. Rates and fees vary by lender. All credit products subject to approval. Information presented was not created or approved by HUD/FHA.
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First Federal Savings Bank | 1880 S Eagle Rd | Meridian, ID 83642
Institution NMLS: 402963

www.MortgageFirstFed.com/dcook
www.BankFirstFed.com

First Federal Savings Bank provides HECM Reverse Mortgage lending in the states of
Idaho, Oregon, Washington, Montana, Wyoming, Utah and Nevada.
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