The decision to take out a Home Equity Conversion Mortgage (HECM), commonly known as a reverse mortgage, is not an easy or uncommon one. Senior homeowners have various options when it comes to achieving their financial goals in retirement. Many consider reverse mortgages because they can be used to eliminate monthly mortgage payments1, gain access to cash in the form of loan proceeds, consolidate debt2, and even make home improvements.
With the abundance of information on the internet, we’ve compiled a list of reverse mortgage resources from several trusted organizations to help understand how the product can be leveraged in retirement.
Reverse Mortgage Resources
The United States Department of Housing and Urban Development (HUD) seeks to increase homeownership, support community development and increase access to affordable housing free from discrimination. Completion of HUD counseling3 is required to obtain a HECM loan; but, completing the counseling session does not obligate homeowners to proceed with the loan. Furthermore, lender fees cannot be incurred until HUD counseling is completed.
National Council on Aging (NCOA) is a respected national organization that helps people aged 60+ meet the challenges of aging.
Consumer Financial Protection Bureau (CFPB) is responsible for rule-making, supervision, and enforcement of Federal consumer financial protection laws and restricting unfair, deceptive, or abusive acts or practices against consumers.
Fannie Mae is a government-sponsored enterprise that makes mortgages available to low/moderate-income borrowers.
Whatever the need may be, a reverse mortgage can offer flexible options for seniors to gain access to equity in their home. If you or a loved one is interested in learning more, call (800) 976-6211 to speak with a licensed reverse mortgage specialist and get a free same-day and no obligation loan assessment.
1 Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
2 Your HECM loan will accrue interest that together with principal will have to be repaid when the loan becomes due.
3 The U.S. Department of Housing and Urban Development (HUD) provides a list of approved reverse mortgage counseling agencies for you to choose from. The purpose of this requirement is so you are aware of all of your options, and can evenly weigh the pros and cons of each.