Participants in Reverse Mortgage Loans
The U.S. Department of Housing and Urban Development (HUD) requires customers interested in securing a Reverse Mortgage loan to participate in a counseling session offered by a housing agency certified by them.
This program is designed exclusively for people who have reached the age of 62, own a home, have a primary residence, and have a low or no outstanding balance on their mortgage.
What to Expect During Counseling
During the guidance session, the counselor will explain what reverse mortgages are, the tax and heir implications, payment options, associated costs, and alternatives to the reverse mortgage. The counselors will not prequalify you for the loan: they are not creditors or financial advisors, so they will not give you recommendations on how to invest your money. The counselor's role is to help you understand what the Reverse Mortgage is and present the options so that you can make a well-informed decision.
Upon completion of this guidance session, the counselor will issue a certificate. If you decide to continue with the loan process, you must give the certificate to the mortgagee. This certificate does not obligate you to continue with the loan process and has a validity period of 180 days. If the certificate expires, you will need to attend the guidance session again.
To make an appointment for Reverse Mortgage counseling, call 888-692-2650.