A reverse mortgage allows qualified homeowners age 62 or older who have either paid off their mortgage or have paid down a considerable amount, and are currently living in the home, to apply for a reverse mortgage often refereed to as a Home Equity Conversion Mortgage (HECM). The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity as cash.
HECM funds may also be used to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
Reverse mortgage counseling:
A reverse mortgage has many factors to consider before deciding if a HECM mortgage is right for you. To help guide you through this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan.
Counselors will also discuss how to prepare for long term commitments when it comes to the mortgage becoming due and payable. After meeting with a HECM counselor, you should be able to make an informed decision of whether this program will fit your needs moving forward.
Your counselor will discuss the following topics to help further explain the pros and cos of a reverse mortgage:
- How a reverse mortgage works
- Explain the various reverse mortgage product options
- Explain the costs
- Help you determine if you can afford a reverse mortgage and meet your financial obligations, such as paying your taxes and insurance
- Identify alternative programs that you may be eligible for such as grant money, housing assistance, tax deferral programs, home repair grants or loans, food stamps, fuel assistance, social services or healthcare options
- Explain the consequences affecting possible eligibility under state or federal programs and the impact on the estate or your heirs
- Review loan comparisons provided to you by the lender as well as the Total Annual Loan Cost disclosure
- Our counselors will not recommend that you obtain a specific product from any particular lender. His or her role is to provide information and clarity but not to advise
- When you complete the session, both the counselor and you will sign a counseling certificate verifying you have fulfilled this requiremen
Reverse mortgage counseling fees:
The free for a reverse mortgage counseling session is $150.00.
How to get started?
To learn more about getting scheduled for a reverse mortgage counseling session, please call 503-655-8974