About Reverse Mortgage Counseling
Reverse Mortgage Counseling or HECM counseling is required by HUD in order to obtain a Reverse Mortgage. You can attend your counseling in person at a local HUD-approved counseling office or you can receive Reverse Mortgage Counseling by phone. Reverse mortgage counselors are not loan officers nor do they represent any particular lender. They are an independent HUD-approved counselor who has been trained in counseling to walk you through the tenets of a Reverse Mortgage.
What to Expect When You Attend Reverse Mortgage Counseling
The purpose of Reverse Mortgage counseling is to help you make an informed decision. Your counseling will last about one hour, and, depending on your questions, may take longer. Your Reverse Mortgage counselor will discuss the Reverse Mortgage program and review your alternatives. Your counselor will go over your budget to see if a Reverse Mortgage is the right vehicle to suit your needs.
After your HECM counseling is completed, your Reverse Mortgage counselor will issue a HECM Counseling Certificate which your counselor will sign. You will also sign and date the certificate, You will then provide this certificate to your Reverse Mortgage Ssecialist, and you will retain a copy. Once your Reverse Mortgage Specialist receives your HECM counseling certificate, the Reverse Mortgage process can begin and an appraisal of your home can be ordered.
NOTE: There is a fee for Reverse Mortgage counseling, typically $125-150. This fee may be waived if you can document that you have a financial hardship.
Who Can Attend Reverse Mortgage Counseling?
All interested parties to the transaction may attend. Family members may be present at Reverse Mortgage counseling. In cases where there is a Durable Power of Attorney and the borrower is incapacitated, the person holding the Power of Attorney will attend the counseling in their place. To find a HECM counselor in your area, click here for HUD.gov.
Attending HECM counseling will give you an extra layer of protection so when you make your decision, you are sure of the step you are taking.
Questions? Call Advisors Mortgage: 888-843-9797 or 631-804-9044
What to Expect When You Attend
Reverse Mortgage Counseling
The counselor must know that you understand the HECM program. HECM counselors are required to ask the borrower ten questions disbursed throughout the session in order to ascertain if the borrower understands the reverse mortgage program. If you are uncertain about any aspect of the program, speak with your loan officer prior to counseling and clarify your concerns.
ALTERNATIVES TO A REVERSE MORTGAGE
• Low-Cost Public Loans (used for home repairs for low to moderate incomes)
• More Costly Private Loans or refinance mortgages
• Public Benefits: Government programs such as Medicaid
• Selling the home and moving in with children
* Community loans for low cost repairs sand renovations on the home
Click here to find a HUD-approved Reverse Mortgage Counselor from the HUD.gov website. You can do counseling in person or by phone
Consider counseling with an advisor or attorney or financial planner. Family members can also help. Perhaps have all parties meet your reverse mortgage specialist so the program can be adequately explained and reviewed. What are the reverse mortgage steps?
ADVISORS MORTGAGE GROUP, LLC., WE TAILOR LOANS TO MEET YOUR NEEDS -Branch NMLS 1833015, 3265 Merrick Road, Wantagh, NY 11793 - Phone: 888-843-9797 or direct: 631-804-9044 - Licensing: CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; FL; GA Residential Mortgage Licensee; NJ: Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker –OH; PA; TX. www.nmlsconsumeraccess.org