What is a reverse mortgage?
A reverse mortgage allows homeowners aged 62 and older to convert a portion of their home equity into cash while they continue to live at home–provided certain loan obligations are met. If you or an older adult you know is considering a reverse mortgage, you must receive counseling from a government-approved agency.
What do reverse mortgage counselors do?
- Reverse mortgage counselors are professionals approved by the U.S. Department of Housing & Urban Development (HUD).
- Reverse mortgage counselors
- perform a financial assessment to assure a robust discussion of needs and considerations
- explain how reverse mortgages work, including payment options and costs
- discuss benefits and drawbacks
- After completing the mortgage counseling session, a certificate is given that is required as part of the loan application. The goal is for the consumer to understand their options and make an informed decision on whether a reverse mortgage is right.