While we continue to persevere during these trying times, many Americans are struggling with financial hardships due to unemployment, losses in the stock market, and the pandemic. There are many loan options available, but some may be more difficult to qualify for in the current economic environment. The following information could help determine which product could be right for you.
Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) can be a flexible option if you need to borrow money and have a solid income stream and good credit.
Forward Mortgage or Cash-out Refinance
A cash-out refinance is a loan option that allows you to access the equity in your home by refinancing with a new forward mortgage. Note that many lenders typically require employment verification at the time of application, and then again within 48 hours of closing.
A reverse mortgage enables you to access a portion of your home’s equity without a minimum credit score requirements or income/employment verification.
If you are looking for a flexible solution that allows you to tap into your home’s equity a reverse mortgage may be an option. To learn more, call 1-800-976-6211 to speak with a licensed loan officer.
3 Your current mortgage, if any, must be paid off using the proceeds from your HECM loan. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.