Since 1994 Finance of America purpose and intent to continuously move and adapt within the boundaries of the industry, while providing innovation in the way they offer their service. Their entire team is devoted to the commitment of providing only exceptional service.
Tom DiLeo, of Finance of America, has over 35 years of mortgage banking experience, both in senior management and origination. He takes great care and pride in assisting his clients in understanding and selecting the financing program that fits their needs. Whether he’s helping a home buyer purchase their first home, assisting a sophisticated investor to finance an investment property, or a senior over 62 looking for information on Reverse Mortgage. Tom has lived in Long Beach for over 60 years and has a wife and daughter.
Tom provided us with insight into Home Equity Conversion Mortgage (HECM) program or reverse mortgage. First Tom explained what HECM is. Reverse mortgages provide borrowers a portion of their home value and requires no payments until a maturity event occurs like leaving the home and you are allowed to retain the title at all times. The reasons to consider HECM (Reverse mortgage) is if you need supplemental income to pay for medical expenses or pay off debt. To be eligible for HECM you must be 62 or older and live on the subject property as a primary resident. You also must show you financial capacity and credit responsible and attend an FHA approved consumer counseling session and obtain a HECM counseling certificate. Eligible properties include single family homes, FHA approved condominiums, planned unit developments, as well as others. FHA insured products include a fixed rate, monthly adjustable, or annual adjustable. Principle limits is the maximum available to a borrower at the time of closing. Higher ages result in higher principal limits.
Tom also talks about the different program features of the HECM. For adjustable rates there are options for a line of credit which grows over time upon current interest rates. Tenure provides equal monthly payments during the life of the loan. Term provides payments for a specific amount and time period. An up-front draw is an immediate lumpsum withdrawal at closing. You can combine any of these things. For fixed rate loans is an up-front draw
Tom’s talk on HECM gives additional details like cost and withdrawal restrictions. There are also consumer protections like mandatory FHA counseling, financial assessment, non-borrowing spouse rules, non-recourse property protection, and no pre-payment penalty.
The loan process starts with education to make sure a reverse mortgage is right for you. Then after assessing your individual needs and financial situation they will prepare you for counseling. Counseling is to ensure you understand all aspect of a reverse mortgage and is approved by HUD. The application process is next in the process and he will let you know what documents you need to provide. Once the loan is approved, the final documents are ready to sign and close. Any existing mortgage will be paid off from a portion of the reverse mortgage. After closing and a rescission period, the loan funds and you receive your money.
Contact Tom DiLeo to discuss your options today.
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