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By visiting this website, you have started the reverse
home mortgage learning process. Most of the time a
loan officer comes to the home to explain the benefits
of a reverse home mortgage to the homeowner and family
or friends. Any questions are answered at this time.
If the homeowner has already had HUD counseling OR
is ready to proceed with the process, an application
is completed. If you would like to visit some government
websites like HUD or AARP, you will find links at
the bottom of this page. The loan process from application
to funding will take 25-35 days.
Counseling by a HUD approved counselor is required.
This can be taken as a first step or after the application
has been completed. HUD counseling can be done via
the telephone or at a fixed location. HUD counseling
typically lasts from 45 minutes to one hour. The HUD
counselor will sign and date a HUD Counseling Certificate
at the conclusion of the meeting. The borrower(s)
then sign and date the HUD counseling certificate
and give it to their Loan Officer to start the loan
process.
The loan officer takes the application before or after
HUD counseling. The loan officer carefully explains
the Reverse home mortgage program features and benefits.
Some of the forms are:
- Good Faith Estimate
- Tax & Insurance Disclosure (the borrower
must continue to pay the taxes and insurance)
- Loan application, Fannie Mae form 1009
- Privacy Policy Disclosure
- Principal Limit Lock Disclosure – this
form locks in the loan amount at date of application
The loan officer will collect copies of:
- Drivers License or other form of Picture ID
- Social Security Card or Medicare Card
- Most recent Property tax statement
- Homeowners Fire Insurance Policy – Declarations
page.
- Most recent mortgage statement(s)
- Copy of your Trust, if you have one. The Trust
(in most cases) must be revocable
When both the application and HUD counseling have
been completed, you are ready to start processing
the loan. The next step is to order a HUD appraisal
and a termite inspection. If either report reveals
things that require fixing, according to HUD guidelines
the borrower can fix these within six months after
the close of escrow. If there are repairs required,
a separate “Repair Set Aside” account
is created.
Fire insurance is required. In some cases the current
policy may be less than the lender requires and therefore
it is necessary to increase the insurance policy to
the current value.
When the loan documents are ready to be signed, the
loan officer will schedule a convenient time to come
to your home (with the notary) to go over the documents
and sign and date the loan papers. There is a three
day right of rescission and the funds are disbursed
on the seventh business day after signing. Typically,
if you choose to have monthly payment, the funds are
wired to your account on the first day of every month.
If you choose a credit line, the funds are wired within
five business days of receiving the request in writing.
Partial or total lump sum payments will be received
seven business days after close of escrow.
You must continue to pay property taxes and insurance.
You must also maintain your home in good repair. Any
repairs that are required must be done within six
months of the close date. Proof of required repairs
must be sent to the Lender.
- The American Association of Retired Persons (AARP)
publishes a book titled:
Home Made Money A Consumers Guide to
Reverse home mortgages
- HUD – Housing and Urban Development.
www.hud.gov
- The Federal National Mortgage Association (Fannie
Mae) publishes a book titled:
Money From Home - A Guide to Understanding
Reverse home mortgages
- Reverse home mortgage Information in Spanish
Diez datos para saber si está
interesado en una hipoteca revertida
Dinero hecho en casa Guia sobre hipotecas
al reves para el consumidor
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