Borrower lives in Texas, currently renting for a couple of years. They are looking to purchase a home as a primary residence. They own a rental property in another state and taking a HELOC out on that property to purchase the new home in Texas. Is that acceptable for the HECM program?
HECM prohibits borrowed funds for closing. This includes obtaining a bridge loan, HELOC etc. from an existing property to fund the new HECM transaction.