Reverse Mortgage Counseling

There are many factors to consider before deciding whether a HECM is right for you. To aid in this process, you must meet with a HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. The HECM counseling session should allow you to make an independent, informed decision of whether this product will meet your specific needs.

To be considered for a reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that you participate in a counseling session with an approved nonprofit housing counseling agency. At completion of the session, the counselor will issue you a certificate that must be provided to the lender you choose to work with. At NPHS, we have counselors certified by HUD who specialize in helping consumers, 62 years of age or older, explore and evaluate this financial tool.

During your reverse mortgage counseling session, your counselor will work with you to help explain how reverse mortgages work, the financial and tax implications of taking out a reverse mortgage, payment options, and costs associated with a reverse mortgage. Your counselor will also highlight available resources that you may find useful in meeting your financial needs.

Counselors are not lenders or financial advisors. Your counselor’s goal will be to help you understand your options so you can make an informed decision. Upon completion of the counseling session, you will be issued a certificate of participation. If you choose to proceed with the loan process, your lender will likely require this certificate. It is our desire to make this process as smooth and efficient as possible.