how hecms work
HECM Property Value and Other Criteria
The HECM program presently limits the amount of property value it will finance to $625,500. If your home is appraised at $900,000, how much of its property value will be considered in financing your loan?
- $900,000
- $625,500
- $350,000 or less
“B” is correct. To qualify for a HECM, you must have sufficient equity in your home. FHA also considers the age of the youngest homeowner, your home’s condition, where it’s located, and the current interest rate. Prior to approval, your income, assets, monthly living expenses, and credit history may be verified. They also may check to see if you regularly pay your real estate taxes and hazard and flood insurance on time.