HECM / Reverse -- MLO Exam with
Complete Solutions
Details about the FHA HECM program -Its an FHA Program
-allows for a one-time single-advance transaction.
What is a single-advance transaction? -can be setting up a LOC (line of credit)
Who qualifies? *all people on the note and title MUST be age 62 or older.
-other people can live there but they cannot be on the note or title
-it must stay the primary residence (where you live the majority of the year)
What is HECM? -Collateral-only loan --- No ATR required
-this is the only time that a collateral only loan is ok.
-NO MIN. PAYMENT DUE EVER
What is required to qualify for this program? -HUD counseling*
-required before you can even apply
-counselor has to sign off that the borrower is understanding and in sound mind in order to go
through with it. (prevent elder abuse)
When does this program end? 1) when you have been gone for a full year; a full year that
it has not been your primary residence.
2) dead --> 1 year freeze
Complete Solutions
Details about the FHA HECM program -Its an FHA Program
-allows for a one-time single-advance transaction.
What is a single-advance transaction? -can be setting up a LOC (line of credit)
Who qualifies? *all people on the note and title MUST be age 62 or older.
-other people can live there but they cannot be on the note or title
-it must stay the primary residence (where you live the majority of the year)
What is HECM? -Collateral-only loan --- No ATR required
-this is the only time that a collateral only loan is ok.
-NO MIN. PAYMENT DUE EVER
What is required to qualify for this program? -HUD counseling*
-required before you can even apply
-counselor has to sign off that the borrower is understanding and in sound mind in order to go
through with it. (prevent elder abuse)
When does this program end? 1) when you have been gone for a full year; a full year that
it has not been your primary residence.
2) dead --> 1 year freeze
