What Is Reverse Mortgage Counseling?

Reverse mortgage counseling is a counseling session that’s required for homeowners who are considering a home equity conversion mortgage (HECM). An HECM is a type of 澳洲幸运5官方开奖结果体彩网:reverse mortgage that’s backed by the federal government.

Homeowners must complete 澳洲幸运5官方开奖结果体彩网:counsel♐ing with an approv🎶ed counselor prior to applying for an HECM. The purpose of counseling is to ensure that homeowners understand what’s involved when getting a reverse mortgage.

Understanding Reverse Mortgage Counseling

Reverse mortgage counseling is an opportunity for homeowners to learn about how reverse mortgages work so that they can make an informed decision about whether they should get one. A reverse mortgage allows homeowners to convert the 澳洲幸运5官方开奖结果体彩网:equity in their homes to income. If you’re considering an HECM, you must complete approved rever🌃se mortgage counseling.

You have the right to choose which counselor you work with. HUD offers two search tools to help you find reputabl🐲e reverse mortgage couns♔elors:

The first tool helps you to find options for in-person counseling near you. The second can help you find 澳洲幸运5官方开奖结果体彩网:phone counseling options if you’re unable to meet w✃ith a counselor face-to-face.

HUD requires approved counselors to cover certain topics during counseling sessions. When you meet with a counselor, you can expect to discuss the following:

• Your financial situation, including your income needs
• Features of a reverse mortgage and how they work
• Financial responsibilities for a reverse mortgage, including your obligation to pay 澳洲幸运5官方开奖结果体彩网:homeowners insurance and 澳洲幸运5官方开奖结果体彩网:property taxes
• Reverse mortgage costs
• Financial and tax implications of reverse mortgages
• 澳洲幸运5官方开奖结果体彩网:Reverse mortgage alternatives, such as home equity loans and home equ🍌ity lines of credit (HELOCs)
• 澳洲幸运5官方开奖结果体彩网:Reverse mortgage scams, 澳洲幸运5官方开奖结果体彩网:financial elder abuse, and how to spot both

Reverse mortgage counselors are allowed to charge fees for their services, and those fees must be “reasonable and customary,” according to HUD. The fees that you pay can’t exceed the level of services provided to you.

HUD and other 澳洲幸运5官方开奖结果体彩网:housing counselors also of𒁏fer help to homebuyers and homeowners looking to purchase a suitable home or stay in a suitable home. These services help people avoid homelessness and eviction.

Reverse Mortgage Co𓆏unseling Special Consideratio💙ns

Completion of reverse mortgage counseling is required before you can move ahead with an application for an HECM. But obtaining your completion certificate is not guaranteed. Your counselor can withhold your counseling certificate if they believe that you don’t fully understand the details of a reverse mortgage or what getting one might mean for you. You may need to complete additional counseling sessions to obtain it, which can delay the process of getting a reverse mortgage.

Taking time to prepare before meeting with your counselor can help to ensure that the session goes as smoothly as possible. For example, it may be helpful to organize financial statements and records so that you understand how your income and expenses add up. You can also take time to read up on reverse mortgages and how they compare to other products, such as home equity loans.

The Bottom Line

Counseling with a government-trained and -approved counselor is required before entering into a reverse mortgage, because this type of loan is complex. Reverse mortgage counseling aims to protect borrowers by making sure that they understand how the loans work: 澳洲幸运5官方开奖结果体彩网:the benefits as well as the costs, 澳洲幸运5官方开奖结果体彩网:payment plans, how to spot red flags or signs of elder abuse, and other financial alternatives that might be available to the h♏omeowner.

Reverse mo꧂rtgage counseling may take place by phone or in person, and counselors are trained to connect homeowners to other services—in💜cluding social or health-related services—that can help them manage finances and continue living independently.