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Lender Alerts

Lender Alerts

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Clarification on HECM-to-HECM Refinance

Dear Licensed Partner,

As an additional clarification to existing Sun West guidelines regarding HECM-to-HECM Refinances, Sun West will accept a HECM-to-HECM Refinance only if it meets the seasoning requirement. There must be an 18 month waiting period after the closing of the prior HECM loan before it can be refinanced to a new HECM loan.

If the HECM-to-HECM refinance does not meet the seasoning requirement, Sun West will only accept the loan if there is no increase in the appraised value and the new loan passes both Closing Cost1 and Loan Proceeds2 tests.

1 The amount of increase in the Principal Limit between the original HECM and the new HECM Refinance must be at least five times the amount of total closing costs of the new HECM Refinance.

2 The amount of Principal Limit from the HECM Refinance that is available to the borrower after deducting both the payoff amount of the original HECM and total closing costs of the HECM Refinance must be at least 5% of the Principal Limit of the HECM Refinance.

If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.


Sun West Mortgage Company, Inc.
18000 Studebaker Road, Suite 200
Cerritos, CA 90703
Phone: (800) 453-7884
SW-1: Our New No Overlays Program


Equal Housing Opportunity This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.