Below is the most common process for getting a reverse mortgage loan. Our professionals are eager to help you understand the reverse mortgage loan process. Please contact us with any questions.
Step 1 - Research Reverse Mortgage Loans
Speak with a mortgage professional about reverse mortgage loan options. Familiarize yourself with the various types of reverse mortgage loans and pick the one that is right for you.
Step 2 - Meet with a HUD approved counselor
In order to receive a reverse mortgage loan you must meet with an HUD approved councilor who will help you understand what it means to have a reverse mortgage loan. Independent HUD counseling typically costs $125 a we would be happy to provide you with a list of HUD approved counselors in your area.
Step 3 - Application
Complete the rest of the application process and provide documentation for underwriting. A secure application link is available by clicking here, though speaking with the Loan Officer too, is highly recommended.
Step 4 - Your application is process and the appraisal is ordered.
While the loan is being processed you will receive regular updates and communication from the Loan Officer and/or Loan Processor about the status and timeline of the application. The real estate appraiser will come to the home to determine the estimated value performing an FHA appraisal. The home must be eligible for FHA financing, since the HECM is an FHA insured loan.
Step 5 - You complete loan file is reviewed by the Underwriter.
All the details are reviewed until approved, and the Underwriter would then issue a “clear to close”.
Step 6 - Your loan reaches closing
Once you are approved, final disclosures are sent to you and we can schedule closing a few days later where you will sign the final loan documents.
Step 7 - Receive your payments
After closing you’ll have three business days in which to cancel the loan. Once that grace period is up, you’ll start to receive the reverse mortgage loan proceeds according to the manner that you have elected: one-time lump sum payment, monthly installments, as a line of credit or as a combination of a line of credit and monthly installments.
Step 8 - Repaying your Reverse Mortgage Loan
The home owner is never required to make mortgage debt service payments on the reverse mortgage as long as the home remains the homeowner’s primary residence and does not trigger a “default”. You can make payments if you want to, but you are not required to. A default trigger could be one of the following circumstances where the balance of the reverse mortgage would become payable.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.