In order to be eligible to apply for a reverse mortgage, one of the requirements to fulfill is to attend a counseling session with a counseling agency that is approved by the U.S. Department of Housing and Urban Development (HUD).
To find reverse mortgage advisors that are HUD-approved, please click on this link:
Counseling allows you to speak with an unbiased reverse mortgage advisor whose entire purpose is to help you determine if the reverse mortgage option is the best one for you.
WHAT HAPPENS IN A COUNSELING SESSION?
The HUD-approved counselor will speak with you about many aspects of a reverse mortgage. This takes about an hour and may be done in person or, in some states, over the telephone. Here are a few of the topics you can expect to be covered.
• You may learn about the Federal Housing Administration and their role in the reverse mortgage program.
• The counselor may use loan comparison and analysis software to help figure out the best financial decision for you.
• The counselor will go over reverse mortgage loan terms that may be used in the reverse mortgage literature, websites, and info kits, given to you by the lender of your choice. The counselor aims to have you understand the definitions of these terms.
• The counselor may explain interest rates and how they are calculated in a reverse mortgage program.
• The counselor will review home repairs that may be required for your home in order for you to get a reverse mortgage, if this is applicable to you.
• The counselor may be able to review your income and expenses and advise which of the many disbursement options would be best for your particular situation.
• The counselor will review if any other financial options may be better suited for you than a reverse mortgage. They will recommend the best financial decision and may give you reverse mortgage advice.