HEMC

mjensen907 · Joined: 21 Jan 2007 Posts: 1 1.35 Dollars($)

can a farm qualify for a HECM

tgolden · Posted: Sun Jan 21, 2007 9:56 pm Post subject: HEMC

Hello mjenson907,
The HECM program is very limited and typically will not support a farm. There is a Reverse Mortgage program that is offered by one of the leading lenders (Financial Freedom) that offers the reverse mortgage on gentlemans farms and excess acreage. It is called the Cash advantage account and is designed to benefit higher valued properties such as farms etc. I specialize in both HECM's and Cash advantage accounts. Financial Freedom to my knowledge is the leading lender for both programs. Both programs offer the same benefits and are insured as non- recourse loans.

Hope this helps and let me know if I can be of anymore assistance. I would be glad to send you any details or research that may help answer any questions you may have.
Best Regards
Tony Golden

sara · Posted: Sun Jan 21, 2007 10:14 pm Post subject: RE: farm reverse mortgage

Hi Tony,

Welcome to the forums.

Just wanted to know, is Cash advantage the only reverse mortage program out there. How does one actually qualify for it? Are there credit score requirements?

Hope to learn more from you

Thanks,

Sara

tgolden · Posted: Mon Jan 22, 2007 6:27 am Post subject: RE: farm reverse mortgage

Sorry, new to all of this and i forgot to login in on the last post

Hi Sara,
Nice to hear from you. I see your name on many postings.
There are many reverse mortgage programs out there. Some of them have a few hidden doors and need to be reviewed with great caution. The most commonly used today are the HECM (HUD), Homekeeper (Fannie Mae) and Cash advantage ( Financial Freedom). These are the programs we focus on when helping interested parties.
The main reason is for the favorable features offered. The reverse mortgage needs to be used more for financial planning or helping with a particular situation. We have assisted many people with reverse mortgages but only after we identify that there is no other solution to thier needs. The reason for this is due to a reverse being a growing and compounding debt. Used the wrong way it could be damaging but many times it resolves many growing concerns for people 62 or older. We can not view the reverse as we do forward mortgages to simply finance the cost of home purchases or refi with the veiw of the best rate, lowest payment.
The reverse solves concerns of living a better life for homeowners with equity in thier home. Ranging from foremost - lack of livable monthly cash flow, pay off current mortgage, home repairs, available cash security, long term care needs and many other reasons. Many people are reaching age 62 and and finding out that thier plans didn't work, costs of living have out paced thier source of income and in the situation of being house rich and cash flow poor.
I could go on for ever as this is one of the most misunderstood mortgage products and a passion of mine to make sure it serves it's proper purpose. There is a great need for reverses in todays industry. But as with all mortgage programs , must fit the right purpose.

To qualify, basically the home owner must be on the deed, 62 or older and have enough equity in thier home to offer an advantage to them. The way Reverse mortgages are designed, they only allow the homeowner to have a percentage of the available equity allowing the home to continue to appriciate at a higher pace then the growing debt.

Credit is pulled to review for debt or leins against the homes but actual scores do not completely matter. Many times we have utilized the program to help seniors that have fallen into financial debt due to health issues etc. but could not qualify for any other financing. Again the other benefit is that income does not matter either. There are somes factors that could effect ones quaifications but the program is very giving compared to what we see as forward mortgages.

I hope this helps and ask away. I have been researching Reverse Mortgages for the past 3 years. I will answer any question to my best knowledge or continue to research the unknown.
Tony Golden

sara · Posted: Tue Jan 23, 2007 4:41 am Post subject: RE: that's great

Thanks Tony.

Lots to learn from you. Actually I was not aware of farm mortgages, but still I like to help poeple who come here for information. So, I thought I could just ask you.

Thanks once again.

Hope to see you here again. Smile

Sara

tgolden · Posted: Tue Jan 23, 2007 5:20 am Post subject: Reverse Morgages

Hi Sara,
No Problem. Glad to help in any way I can. Contact me anytime you have a question.
Regards
tg

sara · Posted: Wed Jan 24, 2007 2:43 am Post subject:

Thanks Tony. Will let you know if there is any doubt.

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