How the process works.

Like any other financial transaction, getting a reverse mortgage involves a number of steps designed to protect both you and the lender.

Here are the steps you can expect to go through when you apply for your reverse mortgage:

Initial Discussion
The first thing we like to do is talk to you, either over the phone or in person, about whether a reverse mortgage is right for you. We talk about the pros and cons, how it works, how much money you might receive and anything else you’d like to know about. Then you decide whether you want to take the next step.

Counseling
If you decide that a reverse mortgage is the right choice, you receive free independent counseling from a certified, HUD-approved counselor to make sure that you have had all your questions answered and that there's been no confusion. It’s a protection device that the government has built into the process of obtaining a reverse mortgage.

Appraisal/Inspection
We arrange for an appraisal to determine the objective market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines. In many cases an inspection is required to make sure that the home is structurally sound and that there’s no extensive termite or dry rot damage.

Closing
The final step is the closing where you receive the money, or proceeds, from your reverse mortgage. You can choose to receive the payment in one of three ways: as a lump sum, as a monthly payment or as a line of credit.

Repayment
You do not have to make any payments during the life of the loan. It becomes due when the last borrower moves, sells or passes away. If heirs want to keep the house and not sell, they may pay off the loan balance through refinance or their own funds. FHA guarantees the amount to be paid will never exceed the value of the home.