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. Your Reverse Mortgage counselor is familiar with the basic Reverse Mortgage products. 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 basic 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. Be sure to write down your questions for the counselor prior to the counseling session. Your Reverse Mortgage counselor will discuss the Reverse Mortgage program with you 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. Counselors are not loan officers nor do they represent any particular lender; they are an independent HUD approved counselor. Your counselor will want to be sure you understand the parameters of the reverse mortgage and also the risks.
After your HECM counseling is finished, your Reverse Mortgage counselor will issue a HECM Counseling Certificate which your counselor will sign. You will also sign and date the certificate, (If you received HECM counseling by phone, your certificate will be mailed to you.) You will then provide this certificate to your Reverse Mortgage Specialist, 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. Check with each counseling agency regarding this fee as it may be waived if you can document that you have a financial hardship.
Attendees can include non-borrowing spouses and anyone on the title of the home.
Who Can Attend Reverse Mortgage Counseling? All interested parties to the transaction may attend. Family members may be present at Reverse Mortgage counseling. If you like, you may also invite a friend to come along. In cases where there is a Durable Power of Attorney and the borrower is unable to attend counseling, the person holding the Power of Attorney will attend the counseling. To find a HECM counselor in your area, click here for HUD.gov.
Having Reverse Mortgage Safeguards such as HECM counseling ensures that the program is viable, fair, and unbiased. Attending HECM counseling which is required by HUD 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! Advisors Mortgage: 888-843-9797 or 631-804-9044
What to Expect When You Attend
Reverse Mortgage Counseling
It's important to write down your questions prior to your HECM counseling session, but it's also important to study about the Reverse Mortgage process. 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 questions or concerns.
Just as with the HECM Reverse Mortgage, there are no monthly mortgage payments required on the HECM for Purchase. So if you've been thinking about moving closer to the kids and grand kids, consider a HECM for Purchase. You can use the proceeds from the sale of your current home or your accumulated funds for the purchase. Please request information on the HECM Purchase program.
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 that may be a better choice than reverse mortgages.
• Seriously Consider Selling or moving in with children
* Community loans for low cost repairs sand renovations on th 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 help but often do not know the ins and outs of the Reverse Mortgage program. Perhaps have all parties meet your reverse mortgage specialist so the program can be adequately explained and reviewed.
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