Before you apply for a Home Equity Conversion Mortgage (HECM) you’ll need to get counseling. Reverse mortgage counselors approved by the Department of Housing and Urban Development (HUD) are available throughout the U.S. Here is a guide to getting reverse mortgage counseling.

Where Can I get a Reverse Mortgage?
HECM is the only reverse home loan that is insured by the federal government. HECMs tend to cost less overall than reverse mortgages that are privately insured. These loans are available in all states, as well as the District of Columbia and Puerto Rico.

Qualifications for Reverse Mortgage Counselors
Counselors authorized to provide HECM counseling have passed a HUD-approved exam with high scores. They may work for local housing agencies that have other counselors who are not approved to provide HECM counseling, so make sure you ask about the credentials of whoever you choose to work with. Reverse mortgage counselors can provide counseling by phone or in person. During consultations with potential borrowers they use software to analyze and compare reverse mortgages. Information discussed in a counseling session is confidential.

Reverse Mortgage Counseling Sessions
Counseling sessions usually last about and hour, but if you do it by phone it will take at least two phone calls. (Residents of North Carolina must receive reverse mortgage counseling in person.) Homeowners or their authorized legal representative—such as a guardian, conservator, or individual with durable power of attorney—can request a reverse mortgage counseling session. Other individuals, including mortgage lenders, are not authorized to request counseling for a homeowner.

Reverse Mortgage Checklist
It’s a good idea to equip yourself with as much information as possible about reverse mortgages before making an appointment with a housing counselor. AARP has a checklist of questions to ask yourself before considering a reverse mortgage. Among the things you should consider are why you think you need a reverse mortgage, as well as whether or not you can actually afford one.

This entry was posted on Tuesday, July 7th, 2009 at 8:02 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.