Can the senior applicant participate in a rent back/leaseback agreement with the seller?
No. When purchasing a new principal residence, the HECM mortgagor has 60 days to occupy the home. Unlike a forward mortgage, there is an increased risk to FHA when the home is not occupied by the HECM mortgagor. Prior to closing, the HECM mortgagor and seller should agree to a date for physical occupancy of the property and the lender should confirm occupancy prior to their submission of the case binder to the local HOC for endorsement.
Related Questions
- If the applicant presently resides in subsidized housing, do we consider the total rent or the amount of rent that is actually paid by the applicant when determining the rent to income ratio?
- Can the HECM mortgage participate in a rent back/leaseback agreement with the seller?
- How can I participate in the 2002 Master Agreement Protocol?
