Funds for down payment. I have a client that owns a home out of state. He wants to purchase a primary residence in Texas where he currently lives in a rental unit for the past couple of years. He is taking a home equity loan out on the property out of state and wants to use that for his down payment and closing cost. Is that acceptable?
HECM prohibits borrowed funds for closing, this includes getting a bridge/HELOC etc. from an existing property to fund the HECM transaction.