Reverse Mortgages & HUD Counseling

5/16/2007

posted by N. Sioris

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Before senior homeowners are eligible to apply for a Reverse Mortgage, they must first discuss the loan with a counselor employed by a non-profit or public agency approved by the U.S. Department of Housing and Urban Development (HUD). Before an application can be processed the applicant must complete either face-to-face or telephone counseling.

Both HUD and AARP oversee a network of counselors whose job it is to review the Reverse Mortgage process with the borrowers, discuss alternatives, and answer any questions the seniors may have about how the loan works. These counselors are required to use loan analysis and comparison software that meets AARP's model specifications, as outlined by the AARP Foundation's Reverse Mortgage Education Project.

Counseling usually takes at least one hour, but can take longer especially when done by telephone. Counseling is funded by HUD and is free to the senior applicants.

HUD counselors can be located Nationwide by calling toll-free: 866-889-9347