WHAT IS COUNSELING?

No matter which reverse mortgage you choose there is a counseling requirement and it can be very helpful.

To be eligible for a federally insured HECM Mortgage, you must discuss the loan with a counselor employed by a nonprofit or public agency approved by HUD (the U.S. Department of Housing and Urban Development or FHA). We will provide you with a list of FHA-approved counselors in your area.

We are proud of the fact that many of our reverse mortgage clients have told us they learned nothing they had not already gone over with us. The counseling, however, helped reinforce the fact that what we presented was true. We believe homeowners want the facts, not a sales pitch.

HUD regulations require that the home owner(s) receive counseling/information about the implications of a reverse mortgage prior to application for a HECM. The counseling sessions last about one hour and cover: options available other than a reverse mortgage; presentation of the full financial implications of entering into a HECM; disclosure of tax consequences and possible changes of eligibility under state and federal programs and determination whether or not the home home owner has entered into an estate planning contract (HUD regulations limit participation in these programs).

These sessions are structured to provide information only; all final decisions are the responsibility of the homeowner(s).