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Cash Account for High Value Homes and Properties
The Cash Account program is a Reverse Mortgage program designed for home owners with homes valued in excess of $750,000.
They are required to withdraw 75-100% of their equity immediately for use.
They still enjoy the benefits of deferring repayment of the mortgage interest and principal for as long as they own their house.
The Cash Account is a product unique to the investor and as such is not covered under the guidelines (as set by HUD). It provides a greater loan amount on jumbo properties above $750,000
than either the Fannie Mae or HUD HECM products.
The main advantages of all options under Cash Accounts program are: -
Homeowner retains title to home and can live in it for as long as they are alive. -
The amount of the loan
repayment for the homeowner or heirs never exceeds the appraised value of the home -
No maximum home value or loan limit (There are limits under the HUD
and FNMA programs) -
No income requirements -
Loan proceeds are equity and therefore Tax-Free
There are three different programs Simply Zero Option | Zero Point Option | Standard Option | You draw 100% of all funds at closing | You will be required to draw 75% of net principal limit at closing The remaining funds can be withdraw with a minimum withdrawal of $500 | There is no minimum draw at closing All funds can be withdrawn with a minimum of $500 | Line of Credit is not available during the 5 years | Line of credit is available for any unused balance and grows at 5% per year. | Line of credit is available for any unused balance and grows at 5% per year. | There are no closing cost excluding local or state taxes, if any | Actual closing costs are limited to $3500 excluding local or state taxes, if any | Closing cost will vary according to the value of home | No prepayment penalty, Partial prepayment not permitted for the first 5 years | No prepayment penalty, Partial prepayment not permitted for the first 5 years | No prepayment penalty, Partial prepayment can be made at anytime | Full Prepayment permitted at any time | Full Prepayment permitted at any time | Full Prepayment permitted at any time | Lifetime rate cap of 6% over initial rate | Lifetime rate cap of 6% over initial rate | Lifetime rate cap of 6% over initial rate |
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