Reverse Mortgage Counseling
A Reverse Mortgage can assist in providing a tax free cash flow to eligible homeowners, 62 years of age or older. It is a unique type of loan used by older Americans enabling them to convert the equity in their homes into cash. Without the obligation of a monthly payment while in the home, a reverse mortgage is designed to enable a senior’s financial independence, by making funds available to the homeowner.
A Reverse Mortgage allows homeowners access to money that they have built up as equity in their homes. The biggest advantages are that there are no credit-worthiness or income requirements and instead of making a payment on your loan, you receive monthly payments, a lump sum payout, or a line of credit.
Money from a reverse mortgage can provide seniors with the financial security they need, and it can enable them to enjoy their retirement years, while allowing them to remain in their home. Candidates for reverse mortgages generally have low or no outstanding mortgage debt on their property. A reverse mortgage borrower can only obtain a reverse mortgage on their primary residence. ACCC’s Certified Housing Counselors will provide you information and education necessary to make an informed decision as to whether a reverse mortgage is the right option for your situation.
Your counselor will provide basic information on reverse mortgages in general, review of implications of this financial tool, and will provide explanation or resources for remaining questions that you may have. Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.
