Home equity conversion mortgage enables you to withdraw some of the equity that you have accrued over the years of owning a home. As the homeowner you choose whether you want a fixed lump sum, line of credit, or a tenure payment. The latest and greatest is the HECM purchase. This allows you to purchase a home with a partial cash down payment with no further mortgage payments required. With that being said, there are several online articles, websites, and content available to help guide you in the direction that you need to head, but FHA mandates the completion of counseling. HECM counselors are required simply because the FHA wants to make sure this program is suitable for you.
You may not receive a HECM loan unless you can provide us as your lender a certificate of completion with a FHA counselor. They are valuable learning sessions and will answer any questions regarding the program. Some counseling agencies do charge up to $125.00. HECM counselors will discuss the financial implications and alternatives to obtaining a reverse mortgage. This informative counseling session will help you with the confidence you need in making your own decision on rather to proceed with the HECM program.