REVERSE MORTGAGE PROCESS
Our licensed specialists do everything they can to ensure you have a great experience throughout the entire process of getting your loan. They are with you every step of the way to answer your questions and ease any concerns. Here’s how the process will go.
The first step you’ll take in the loan process is deciding whether or not the loan is right for you. During this step, you will:
- Learn more about the program and get your questions answered from your licensed specialist.
- Determine if you qualify.
- Attend a required educational counseling session with a HUD-approved counselor.
Application and Review
During this step, we will review your financial situation and get the appraised value of your home. During application and review, you will:
- Receive, review, and complete your application with guidance from your licensed specialist.
- Undergo a financial assessment to make sure you can uphold the financial obligations of your loan.
- Get your home appraised by an FHA-approved appraiser.
- Have your application documents reviewed and finalized.
Closing and Disbursement
This final step includes getting your proceeds. During this time, you will:
- Sign the final documents and close the loan in your home or anywhere you choose.
- Obtain your proceeds after the three-day rescission period.
- Receive the money in a lump sum, monthly disbursement or line of credit.
- Enjoy your retirement.
Required Counseling Session
Counseling sessions ensure clients are aware of their financial options and truly understand how the loan program works. Here are a few facts:
- Educational counseling is a requirement of the U.S. Department of Housing and Urban Development (HUD).
- A HUD-approved, third party counselor performs the session.
- Sessions usually last about an hour.
- In most states, counseling can be done over the phone.
There are a few HUD-approved national counselors. You can find these and others by visiting hud.gov
A financial assessment is required to ensure the borrower is in the best position to succeed with their new loan. Based on the review, we may set aside an estimated amount of funds that come from the loan proceeds to pay for property taxes and homeowners insurance. During this process, we will review:
- Credit history (credit scores are still not a requirement)
An appraisal determines the market value of your home, which is needed to determine how much money you qualify for. A licensed FHA appraiser will perform the inspection and compare similar homes in your area to determine your home’s value.
What Happens After Closing and Disbursement?
While you enjoy your new home equity conversion mortgage, you are still obligated to pay your property taxes, homeowners insurance, and home maintenance costs. If you fail to do so, the loan may come due. Aside from this, the loan only comes due when the last borrower vacates the home or passes away. Your heirs will never assume the debt, but have the option to keep the home by paying off the loan balance or 95% of the appraised value of the home, whichever is less.