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


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.

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