Hello Sharon,

Please don’t think I am dodging your question, but several other factors will influence that answer.  Your age, interest rates when you apply, the program you choose, and the costs in your area will all affect the amount you receive. 

For example, a 62-year-old borrower gets a lot less under the program than an 85-year-old borrower because statistically speaking; a 62-year-old borrower can live in the home much longer over a lifetime and accrue a lot more interest than someone who is already 85 years of age. 

If you choose the fixed-rate, HUD will limit your initial draw to just 60% of the total benefit amount at closing, and because there are no further draws allowed on the fixed-rate program, you will never have access to the remaining 40% that other borrowers who choose the line of credit can use after 12 months. 

The fixed-rate loan requires you to take a total draw of all funds. At the same time, the adjustable-rate line of credit allows you to take any amount you wish up to the full amount available. Then it gives you another 40% of the benefit amount or Principal Limit on day 366 (after 12 months).

Interest rates will affect the amount you receive.  HUD uses a calculator that considers current rates at application “known as the Effective Rate,” The higher the Effective Rate, the lower the amount of money you will receive.  A half-point interest rate swing could raise or lower your proceeds by tens of thousands of dollars.  Borrowers who get quotes and then wait many months in rising interest rate markets are often disappointed when the following quote they receive is for far less than the previous dollar figure.

And then finally, costs to close a loan vary throughout the country.  Title and recording/tax stamp costs in California or Arizona could be $4,000 or $5,000 lower than in Florida or some other more expensive areas to close loans. 

The best thing you can do is to visit our calculator to run your numbers.  Our online, real-time calculator will determine your benefit amount from your actual birth month and year (you don’t even need your full birth date) and the true costs in your area. 

We never ask for a social security number, and you will see all options available to you instantly.  If you want someone to contact you after that, we are always available to you, but if it’s not for you or you would rather not be bothered at this time, you will not have pushy salespeople bothering you – it’s your call.  We are here to help!