What
does it mean to
seek counseling?
Government
approved counseling is a mandatory part of the loan process. Meeting
with this independent third party ensures the senior understands
the reverse mortgage process, and also provides an opportunity
to discover what other options are available to them.
The
counselor must be from a HUD-approved counseling agency or AARP-trained
telephone counselor. These professionals will provide you supplemental
information, help determine your eligibility, and help you with
loan alernatives if those options are available and a better solution
to your financial situation. After counseling, you will be given
a certificate to give to the lender to prove you have completed
this step in the loan process.
Are
Reverse Mortgages Safe?
Reverse
Mortgages are very safe. The counseling requirements (with an
independant, government approved counselor) ensure this decision
makes sense for you. FHA and Fannie Mae guarantee the payments
to you, allowing you to stay in your home as long as you like.
Most Reverse
Mortgages are FHA insured, providing the benefits of lower interest
rates and loan guarantees.
