AARP HUD Reverse Mortgage Counseling

Before you can initiate a HECM reverse mortgage loan application you must complete AARP-HUD approved reverse mortgage counseling. AARP was instrumental in assisting HUD to design the training program for HUD approved reverse mortgage counselors as well as the content for the counseling sessions.

Because reverse mortgages are so different from any other type of home equity loan, and because applicants are always senior citizens, the government along with AARP implemented mandatory reverse mortgage counseling as a safeguard to help protect seniors from being taken advantage of as well as to educate them on how these loans actually work.

During your counseling session you will be asked if you have considered alternative options other than getting this type of loan. Some of those alternatives might include, moving in with your children, selling your home, moving to an assisted living facility, etc. The counselor will review the costs involved, the impact on your heirs and cover the pros and cons of reverse mortgages.

Reverse Mortgage Costs

AARP-HUD reverse mortgage counseling is intended to insure that you completely understand how the loan works, its' impact on your estate, the total costs involved, and answer any questions that you, your financial advisors or your family may have. You are encouraged to have anyone you trust in helping you make financial decisions attend the HUD counseling session with you.

Reverse mortgage counseling can be done in person or over the telephone. The session can last from about an hour to more than two hours depending on how many questions you have. Scheduling your HUD reverse mortgage counseling is the first step in the loan application process once you have determined that this could be the right choice for you. The lender you choose to work with is not able to start processing your loan until you go through counseling and receive a certificate of completion. The certificate must be presented to the lender and submitted to FHA/HUD with your loan application.

You can receive your counseling from a number of non-profit credit counseling agencies, however, the AARP-HUD reverse mortgage counselors are considered to be among the best qualified providers of this service. You can contact the national network of HUD approved counselors through the AARP Reverse Mortgage Education Project by calling 1-800-209-8085.

You can also locate a HUD approved counselor through The National Foundation for Credit Counseling by calling 1-866-698-6322.