Question:

If I have bad credit, can I apply for a HECM program?

Answer:

Yes. A HECM program is not affected by borrowers' credit. Rather, it only considers the equity existing in the home, borrower's age and that is basically it. Of course, you paying diligently property taxes is required.

A HECM program will be especially useful to you if:

  • you are into your late retirement years;
  • you need health care assistance or specialized home improvements;
  • your home value falls within FHA loan limits for the area;
  • if you are in need of cash to eliminate some out-of-pocket expenses;
  • want to stay in your home rather than a nursery.

Your income does not have to be above the median for the county, and your bad credit has no effect whatsoever on your being approved for a HECM program.

Any questions that may arise regarding a HECM program may be answered toll free over phone by a HECM counselor, or usually for a small fee by a HECM lender.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: