Today I want to tell you about 2 loan programs you probably never heard about. Both will help you increase your purchasing power. This means you can buy a more expensive home with less money. Most home buyers like that.
The programs are the HECM and the ECO Loan. Here are the details …
The Home Equity Conversion Mortgage – HECM
With this FHA insured loan you can purchase a home or condo for 50 to 60 cents on the dollar. You must be 62 or older and have a substantial cash down payment.
The HECM is perfect for older buyers who want to right size and move to the home they plan to enjoy for retirement.
A HECM purchase requires a cash down payment of between 50 and 60% of the purchase price, depending on your age. The remainder is financed with an FHA insured mortgage.
As long as you live in the house you do NOT have to make any mortgage payments. Neither you nor your heirs will be personally liable for the loan.
Let’s say you sell your suburban home after the kids moved out and you net $300,000 at closing. With that money you want to buy a new ranch condo for the same price. Instead of paying all cash, you make a down payment of $200,000 and finance the rest with a HECM mortgage.
Here’s how you win: you don’t have to make any mortgage payments for the rest of your life, and you have $100K to travel the world, to invest, to support your grandchildren or do whatever you want with that money.
This video explains how the program works:
HECM loans have been around since 2009. Many people purchase Epcon Condos this way. You can only get it from a few lenders.
Click here for more information on HECM Loans.
The ECO-Link Loan
ECO-Link is a loan program to install energy-efficient upgrades or renewable energy products like solar panels. The State of Ohio offers a 3% interest reduction on ECO-Link loans for up to 7 years. The loans are serviced by participating lenders and go up to $50,000.
In today’s hot real estate market many homeowners try to sell their properties as-is without any improvements. First time home buyers often avoid these homes, as they don’t have the funds to pay for upgrades.
The ECO loan gives buyers an opportunity to pay for necessary upgrades without taking out a home equity line (as there may not be any equity in your home) or applying for a construction loan. 50% of the funds will be put toward installation of energy efficient upgrades, and that includes new windows, a new furnace or a new fridge.
Click here for information on the ECO Link program.
Call or text me at (614) 975-9650 for a list of lenders that offer these loan programs.
For more expert tips and advice call or text me and I can discuss with you how we can best market your property to sell for top dollar or help you find the perfect place for your next home.