At 62 years old, mortgage borrowers become eligible to use a HECM Reverse Mortgage to Purchase or Refinance a primary residence through the FHA. To qualify for a reverse mortgage there a several factors;
The initial consultation is the first step in the process, this can be done in person or over the phone. During the initial consultation, a licensed loan originator will explain how the Reverse Mortgage loan works, answer any questions you may have and provide a personalized quote package. As the initial consultation proceeds and you begin to evaluate your options you will have a clearer picture if a Reverse Mortgage is right for you.
Required HUD Counseling
Once we feel that you understand the product and how it can work for you, we then provide a list of HUD approved HECM counseling agencies. The Department of Housing and Urban Development requires that all Reverse Mortgage borrowers receive a counseling certificate from an independent counseling agency. There is a fee involved, paid directly to the counseling agency. The session will last about 30-45 minutes and may be done in person or over the phone. The U.S. Department of Housing and Urban Development (HUD) has established this counseling requirement to ensure that all clients have been properly educated about the program.
After receiving your counseling certificate, the next step is to contact your loan originator to begin the application process, like most mortgage loans this process can take up to 30 days or more until closing.