Reverse Mortgage Counseling in Charlotte

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How a Reverse Mortgage Works

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Individual Counseling for You

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Learn Types of Cash Payout

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Develop a personalized action plan

Use the Equity in Your Home

Senior homeowners now have the opportunity to use the equity in their home without having to sell or take on another monthly payment obligation. Consider a Home Equity Conversion Mortgage ( HECM ) which is a reverse mortgage. It allows senior homeowners, age 62 or older, to turn their home’s equity into available cash. Unlike traditional mortgages, where debt reduces as you make payments, reverse mortgages are “rising debt, falling equity” loans. This means that debt increases as you withdraw funds against the equity in your home. In a reverse mortgage you take your loan proceeds in a lump sum payment, as a monthly payment or as a line of credit. As long as you live in your home and meet the basic requirements of living in the home, paying property taxes, paying hazard insurance, and maintaining your property to meet HUD standards you can live in your as long as you want. No payment is ever required.

HUD Requirements

  • Be 62 years of age or older
  • Have equity in your home.
  • Any existing liens will need to be paid at closing of the reverse mortgage.
  • Participate in a counseling session with an approved nonprofit counseling agency.

Reverse mortgage loans ( HECM ) are federally insured, and federal regulations require that you must complete a reverse mortgage counseling from an approved nonprofit counseling agency, such as Alliance.

Counseling Session

Our counselors are trained to help you understand a reverse mortgage and how it may affect you. We will assess your situation and identify your financing options. Also we will explain the financial and tax implications, payment options, interest rates and costs. This will allow you to decide if a reverse mortgage is the right financial tool for you. Once you have completed the reverse mortgage counseling session you will be issued the required counseling certificate that needs to be filed with your lender at closing.

If you are interested in a reverse mortgage please complete the enclosed application and contact Alliance Credit Counseling at (866)303-3328 or e-mail us at homeownership@knowdebt.org.

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