Reverse Mortgage Process
- Step 1 Counseling and Application – The first thing we do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. Then you will have a counseling session with a HUD approved counselor who will talk about the pros and cons of the program, how it works, how much money you might receive and anything else you’d like to know about. Some may even ask you about monthly bills to help you see you financial picture before and after the reverse mortgage. The HUD-approved counselor is to make sure that you have had all your questions answered and that there’s been no confusion. (List below).
- Step 2 Appraisal – We will arrange for an appraisal to determine the objective market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines.
- Step 3 Underwriting – After the appraisal and inspection reports are completed we go through all the normal processing procedures that you might find in any mortgage.
- Step 4 Closing – The final step of the program is the closing where you receive the money, or proceeds, from your reverse mortgage. You can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit. Then it’s up to you: pay bills, fix up the house, help a family member, or use the money to enjoy your life.
To get started I will need a $450 application – appraisal fee (refunded at closing) * counseling certificate * copy of your deed * driver license * social security card, homeowners insurance policy *survey (if needed) *death certificate (if applies) * power of attorney (if applies) Listing of Counseling Agencies. HUD requires each borrower applying for a reverse mortgage loan to receive counseling prior to completing a reverse mortgage transaction. Below is a brief list of approved counseling agencies who offer this counseling by telephone or in person. We will provide you more approved agencies upon request or you may obtain a complete list of HUD HECM counselors by visiting their website.
Download Booklet by National Council on aging – Use your home to stay at home
Reverse Mortgage Counseling Instructions:
- Call the Counseling Agency of your choice.
- Please say to them: “I/we would like to schedule reverse mortgage counseling.” Please have available the fax number or email address for the loan originator that is working for you.
“These materials are not from HUD or FHA and were not approved by HUD or a government agency.”