Reverse Mortgage Counseling

Considering a reverse mortgage? Clearpoint Credit Counseling Solutions professionals are here to guide you.

A reverse mortgage, also called Home Equity Conversion Mortgages (HECM), is a loan against your home that you do not have to pay back for as long as you live there. It allows senior homeowners (age 62 or older) to turn their home’s equity into available cash.

Unlike traditional mortgages, in which the debt reduces as you make payments, reverse mortgages are “rising debt, falling equity” loans. This means the debt increases as you make withdrawals against the equity in your home. The cash you receive from a reverse mortgage can be paid to you in several ways:

• A single lump-sum payment
• A fixed monthly amount as arranged with your lender
• A credit line to use as needed
• A combination of the above

You are not required to repay the principal, interest or servicing fees as long as you live in your home and meet the basic requirements of the loan (see below).

Eligibility

To be considered for a reverse mortgage, the Department of Housing and Urban Development (HUD)’s Federal Housing Administration (FHA) requires that you must:

• Be 62 years of age or older (for the youngest borrower)
• Have sufficient equity in your home
• Be up-to-date on payments if you currently have a mortgage
• Have no liens on your property If you have property liens they must be paid at closing out of your home’s equity
• Participate in a counseling session with an approved non-profit housing counseling agency (required by law because the mortgage is federally insured) in order to receive required certificate

Get Started

Please call 800.467.0906 to schedule a Reverse Mortgage Counseling session with an experienced housing counselor by phone or in-person (in some locations).

Additional Resources

• Is a Reverse Mortgage Right for You?
• Reverse Mortgage Counseling FAQ