Who Needs To Go To HECM Counseling?

A reverse mortgage requires HECM counseling for all borrowers and nonborrower spouses on a transaction.  It is also requires hecm counseling if you are currenty on title with someone but will not be on title for the reverse mortgage.  These new change go into effect September 2017.

Can I Obtain A Reverse Mortgage If I Had A Cash Out Loan Within The Last 12 Months?

Unfortunately, a reverse mortgage works just like a regular FHA loan.  If you have had a cashout loan of any kind within the last 12 months, you will not be able to obtain a Reverse Mortgage until after one year and one day.  That means you can’t even start the paperwork on a cash out reverse mortgage until one year and one day after you obtain your current loan.

Loan Documentation:

Loan documenation on a reverse mortgage is the same as a regular FHA loan.  We will need to verify your income, assets, and credit.  That means we will need a copy of your W-2’s, and paystubs for the last 30 days if you are still working.  If you are retired and receive social security, we will need a copy of your SSA awards letter.  If you receive a pension, we will need a lifetime benefit letter.  The letter must state that your pension benefits will continue for the next three years or say they are lifetime benefits.  In addition, we will also need a copy of your last two months bank statements.  Unfortunately, we even need a copy of the last page of your banks statement which is probably blank.  However,  the lender wants to see the blank page anyway.  The point is if your bank statement says you have 6 pages then make sure you print off all six pages.  The lender requires a colored scanned copy of your driver’s license.

Additional Documentation:

If you currently own your home free and clear we need a letter from you stating that you have owned your home free.  The letter must also state how long you have owned your home free and clear.  You will also need to obtain the phone number to your hoa.  We will then have to call the hoa.  We will ask them to fill out the form showing whether or not you have paid your hoa dues on time.

For more information on a Reverse Mortgage, call our office directly at 602-358-8717.

We make lending easy!  We can come to you.  Don’t have a copy machine to make copies of your loan documenation for us?  No problem.  Let us know and we can bring our scanner & computer with us to the appointment.

 

Need a reverse mortgage in California?  Check out http://www.Califlends.com

 

“This material is not from HUD or FHA and this document was not approved by the Department of Government Agency.”