Counseling

No matter which reverse mortgage you choose, there is a counseling requirement. This counseling is very helpful.

To be eligible for a federally insured Reverse Mortgage, you must discuss the loan with an independent third party counselor 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.

HUD regulations require that the home owner(s) receive counseling/information about the implications of a reverse mortgage prior to application for a Reverse Mortgage. 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 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).