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Reverse Mortgage Counseling
What is a Reverse Mortgage?
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the current equity in his or her home into a lump sum cash payout, monthly payments, or a credit line. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Also, repayment is not required until the borrower(s) no longer use the home as their permanent residence. HUD and FHA teamed to build a Reverse Mortgage call the HECM, which stands for the Home Equity Conversion Mortgage. This reverse mortgage provides many benefits, and it is federally insured as well. One major benefit and requirement of the HECM is to utilize a Reverse Mortgage Counselor.
Am I required to receive counseling before I get a reverse mortgage?
Yes. Counseling, one of the safeguards of reverse mortgages and is required for all three current reverse mortgage products before you can obtain a loan. A Reverse Mortgage Counseling is a third party educational counseling session that requires no cost and either can be completed over the phone or at their location. A Reverse Mortgage
such as ReverseMortgageNation.com would be able to provide a list of HUD Counselors in your area. The counselor will make sure you understand the complete process and is used for your protection. Reverse Mortgage Counseling is a benefit for the borrower but is also a requirement. A normal counseling session will last anywhere from 25 minutes to 2 hours depending on the questions you might have. Also it is important that once you schedule your appointment, make sure you bring the necessary documentation that the counselor requests. This will reduce time and help speed up the reverse mortgage loan process.
Remember your Reverse Mortgage Lender or Loan Officer will also assist with helping you setup your counseling session.
Two important Reverse Mortgage Counseling Numbers are: Fannie Mae's Homepath Server (1-800-732-6643) HUD's Housing Clearinghouse (1-888-466-3487)
About the author:
Troy Shellhammer is Reverse Mortgage Specialist with ReverseMortgageNation.com, a national Reverse Mortgage Lender. He can assist you with any reverse mortgage questions and can also provide a free educational video, book, and brochures. He can be reached toll free at 1-888-973-8377. Written By: Troy Shellhammer
