How Do I Qualify for an FHA insured Reverse Mortgage?
A personal, one-on-one consultation with “Alabama’s Reverse Guy”, Scott Underwood will analyze your needs to ensure that one of our many reverse mortgage options is a practical solution. We then share with them a detailed cost analysis and comparison breakdown.
We provide each candidate with a printed version of the Reverse Mortgage Comparison Breakdown. We review this breakdown with each senior candidate to ensure that the senior clearly understands the options and benefits of different Reverse Mortgage scenarios.
We strongly encourage all senior candidates to reach out and seek advice from loved ones: family and friends, as well as financial and/or legal advisers regarding their decision to move forward with a Reverse Mortgage.
Before a Reverse Mortgage application is written, we will provide you with the name of a professionally trained HUD approved counselor, and arrange for them to furnish you with an expert objective overview and discuss with you all the Reverse Mortgage options.
Upon your acceptance and approval, we will submit the Reverse Mortgage application to our processing team, who once again reviews the selected program to further ensure a proper and educated decision has been made.
Our processing team then submits the application to our underwriting department. Underwriting will perform a secondary review of the program and product choice.
Once the final review is conducted and closing is complete, a “Reverse Mortgage Loan Report Card” is mailed to each senior client to provide them with a thorough breakdown with objective opinions and comments.
Ultimately, our goal is to help our senior clients find the perfect solution for their needs. To do so, we firmly believe in educating our clients to the utmost, and allowing them access to straightforward, objective information and answers.
Scott Underwood – Alabama’s “Reverse Mortgage Guy” cell 205.908.2993
Here are the steps to a Reverse Mortgage.
1) Counseling and Application – The first thing I 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 of the program, how it works, how much money you might receive and anything else you’d like to know about. Then you need to make an appointment to receive 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. Some may even ask you about monthly bills to help you see your financial picture before and after the reverse mortgage. It’s a protection device that the government has built into the process of obtaining a reverse mortgage and required prior to the application being started or appraisal ordered.
List of Counseling Agencies–HUD requires each borrower applying for a reverse mortgage loan to receive counseling prior to completing a reverse mortgage transaction.
• Call the Counseling Agency of your choice and say, “I would like to schedule reverse mortgage counseling.”
I would call more than one on the list I can furnish you, some may have a 2 week wait and the next may have a 2 day wait! Also, depending on Government Funding, some may ask to be paid around $100 up front!
Can I apply if I didn’t buy my present house with FHA mortgage insurance?
Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.
What’s the out-of-pocket cost? The out-of-pocket cash cost to you is most often limited to an application fee that covers a property appraisal (to see how much your home is worth) and a minimal credit check (to see if you are delinquent on any federally-insured loans).
Most of the other costs can be “financed” with the loan. This means that you can use reverse mortgage funds advanced to you at closing to pay the costs due at that time, and later advances to pay any ongoing costs. The advances are added to your loan balance, and become part of what you owe – and pay interest on.
If a lender charges an origination fee that is greater than the amount that can be financed with the loan, you must pay the difference in cash at closing.