For those homeowners who qualify, a Home Equity Conversion Mortgages (HECM), better known as a reverse mortgage can be a useful money management tool, especially in retirement.
However, one of the requirements for receiving this type of mortgage is one-on-one reverse mortgage counseling. NFCC Certified Housing Specialists provide these sessions so you have all the information you need, from an objective third-party, to make an informed decision. They’ll provide all the information necessary to determining if this type of mortgage suits your needs, while educating you regarding predatory lending practices, so you can make your decision with greater confidence.
Reverse Mortgage Rules
Borrower Requirements
62 years of age or older
Own the property outright or have a small mortgage balance
Occupy the property as your principal residence
Not be delinquent on any federal debt
Participate in a consumer information session given by an approved reverse mortgage counselor
Financial Requirements
No income or credit qualifications are required of the borrower
No restrictions based on disability or social security status
No repayment is required while the property is your principal residence
Closing costs may be financed in the mortgage
Property Requirements
Single family home or 1-4 unit home with one unit occupied by the borrower
HUD-approved condominium
Manufactured home that meets FHA requirements
Reverse Mortgage Amount Based On
Age of the youngest borrower
Current interest rate
Lesser of appraised value or the HECM FHA mortgage limit