Reverse Mortgage Counseling

Reverse Mortgage Counseling

Use Your Home to Stay in Your Home

A reverse mortgage is available to homeowners 60 or 62 and older, depending on the type of reverse mortgage obtained.  This product allows homeowners to convert part of the equity in their homes into cash. NeighborWorks® Housing Solutions (NHS) has certified counselors ready to help you understand and determine whether pursuing a reverse mortgage with a lender is the right decision for your situation. (Please note: NHS does NOT fund reverse mortgages.)

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What IS a Reverse Mortgage?

The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower based on equity in the home either through a lump sum, monthly payments or an accessible credit line, depending on which reverse mortgage product is obtained by the homeowner.

The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home, he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowner’s insurance, and condominium fees or homeowner’s association dues (if applicable).

There are three types of reverse mortgages- The federally insured Home Equity Conversion Mortgage (HECM), and two proprietary reverse mortgages (not federally insured) called Home Safe® and Equity Elite®, respectively.

Why a Reverse Mortgage?

We all know that real estate is a highly valuable investment, especially in certain areas (metro Boston, for example.) It’s quite common for a retired homeowner to find themselves feeling stretched financially once they are on a fixed-income. If they are living in a high-value home with plenty of equity, a reverse mortgage provides a means for the homeowner to live more comfortably.

Visit the National Reverse Mortgage Lenders Association (NRMLA) or the Federal Trade Commission to learn more about reverse mortgages.

Want to see the funds for which you may be eligible? Use the NRMLA’s Reverse Mortgage Calculator.

Looking for other resources to help you continue living safely and comfortably in your home? Click here for the Home Modification Rehab Loan application and the Coverage Area map.

How a Certified Counselor Can Help

If you are interested in pursuing a reverse mortgage, contact us to reach a Certified Reverse Mortgage Counselor and set up an appointment.

At your personalized counseling session, you’ll learn what all of your options are and walk away with an understanding of how a reverse mortgage may work for your situation.

Once you successfully complete your counseling session, and have met the required program criteria, our counselor will provide you with a Reverse Mortgage Certificate, required by Reverse Mortgage lenders, which is good for 180 days from the counseling date.

Reverse Mortgage loans are heavily regulated. Anyone seeking a reverse mortgage must have a counseling session with a certified Reverse Mortgage Counselor. And in Massachusetts, that counseling session MUST be in person.

NHS charges a counseling fee of $175 to be paid at the time of the counseling session unless the homeowner’s income is less than 200% of the poverty level based on Area Median Income in which case the counseling fee would be invoiced and paid out of the Reverse Mortgage loan proceeds at closing.

Call us today at 617-770-2227, ext: 344.

Or email us to schedule your reverse mortgage counseling session.