How to qualify
If you have relatives who is planning to buy a Coral Gables real estate property or any other home in the country, you can help them by offering cash from your homes equity. In order to qualify for the HECM program, you should fit into several criteria, including: the property from which to get equity from must be the principal home; you must own the property or only have a small balance left with your mortgage; you must have an outstanding credit record in any government-offered loan programs; you must also attend a consumer information class from a certified HECM counselor.
Once you qualify for the HECM, you can then choose a payment plan. There are several options to get payments from the reverse mortgage program. If you want to withdraw a certain amount, it will be based depending on the value of the home or a maximum withdrawal limit for a little more than $600,000.
Other payment options
There are four kinds of payment options to choose from, such as: term plan, line of credit plan, tenure plan and modified term plan. First, the term plan allows you to set the number of months wherein youre going to receive equal payments. The line of credit plan, on the other hand, involves installment and unscheduled payments and gives you the chance to borrow any amount you want until the whole fund is withdrawn.
The tenure plan is the basic payment option, which allows you to receive equal payments every month as long as you use the home as your principal residence. Lastly, the modified term plan is simply the combination of the line of credit plan but with the addition of monthly payments paid out for a specific period of months.
Regardless of what payment option you choose, you are given the right to freely change it anytime you want. So the next time you want to help a relative afford a Coral Gables real estate property, dont forget that you can through HECM.
Mark Michael Ferrer
Coral Gables Real Estate
by: Mark Ferrer
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