The HECM loan seems very attractive as more seniors turn to it for cash. There are many questions on the program that beg for answers even before attending the counseling sessions. Here are simple answers on HECM lender in Mahwah, NJ that will enable you to make a decision on whether to proceed with the loan or not.
• What Is HECM?
This is a mortgage guaranteed by the government and designed for seniors to enable them turn their properties into equity and continue living in them for as long as possible. The program is available to anyone aged 62 and older. The house in question must have moderate to significant equity. In case it has a mortgage, it must be sufficiently low to be paid by the disbursed amount.
• Does My House Qualify for HECM Mortgage?
There are houses that do not qualify for HECM mortgages. They include vacation houses, secondary residences, manufactured or mobile houses, homes on leased land, and rental houses that exceed for units. Any home that has no attachment to a permanent foundation does not qualify.
The houses that qualify include single-dwelling units for families, owner-occupied houses that are 2-4 units, some manufactured residences, and planned development houses as well as condominiums. The planned units and condominiums must be qualified by the lender based on a set criterion.
• What Are My Tax Liabilities?
The money received from HECM is regarded as a loan. This means that you are not required to pay any taxes. A tax advisor is better positioned to look at the uniqueness of your case. This is mainly determined by the package offered by the lender.
• How Does It Affect My Medicaid or SSI?
The program is designed not to affect your Medicaid or SSI. To enjoy these benefits, the monthly benefits must be spent other than accumulated. However, to be on the safe side, consult your counselor. The programs vary from one state to the other. The agency responsible for benefits for seniors in your area is best positioned to provide directions.
• What Upfront Costs Can I Expect?
You are required to pay origination and closing fees alongside charges by escrow companies and fees for titles. The initial loan advance can be used to pay for these fees.
A session with the HECM counselor will provide more details. Feel free to ask questions based on your individual situation. This enables you to maximize the benefits emanating from this program.
A professional HECM lender Mahwah will conclusively address all your questions and provide unbiased information.
