We’re happy to discuss your goals and loan options with you to determine if a reverse mortage is right for you, and which one.
The U.S. Dept. of Housing and Urban Development (HUD) and other agencies have prepared materials for homeowners looking for reverse mortgage counseling. We’ll provide you with a list of certified counselors who can help you decide if a reverse mortgage is right for you or your family. The session usually takes a little over an hour.
What to expect from a HUD Counseling Session
To qualify for a FHA-insured Home Equity Conversion Mortgages (HECM), you’ll have to attend a session with a licensed reverse mortgage counselor. They’ll give you information and advice based on your budget and reasons for wanting a reverse mortgage. The counselor will review income, any debts or existing mortgages, monthly expenses including medical, home improvement plans, cash flow, and other relevant factors with the borrower(s). The session can be held over the phone or in person.
Info for family members
For family members acting as power of attorney or legal guardian for the homeowner, the counselor will require proof of guardianship or power of attorney before the session.
If one spouse is not on title to the property, they must also join the counseling session. This non-borrowing spouse should understand that if the borrowing spouse predeceases the owner or no longer uses the home as their primary residence, the reverse mortgage will become due. In these cases, repayment is typically made through the proceeds of the sale of the property, or through a refinance into a new mortgage.
It's a good idea for the family to sit down together and discuss their wants and needs prior to this session. Family members are welcome to join the counseling session.
After the session, the homeowner will receive the required 'Certificate of HECM Counseling', which verifies that the prospective borrower has met with a licensed counselor.
With this certificate in hand, prospective borrowers are then directed to submit a reverse mortgage application.
The appraiser will make an appointment with you to come look at your home, take measurements and pictures. Two to three days after the inspection, we’ll receive a copy of the appraisal and forward it to you for your records.
Why do I need an appraisal?
An appraisal is required by the Federal Housing Administration (FHA) to report your home’s value and to make sure your home is safe and structurally sound.
What is the inspection process?
The inspection is a very simple walk-through inside and outside of your home. The appraiser may test the lights, run water in the sink, or flush a toilet. They’ll take notes and draw a diagram of your home. Outside, they’ll take pictures and measure the exterior walls.
How long does it take?
Only about 15 to 45 minutes.
The appraiser also compares your home to others in your area, to determine the value of your home.