Reverse Mortgage Safeguards: Protecting Senior Borrowers
Huge financial decisions require careful planning and evaluation. Reverse mortgages are a popular, federally insured borrowing option offered through private lenders like Corban Financial Group. Reverse mortgages, also known as home equity conversion mortgages (HECMs), were designed to help seniors who would benefit from extra cash flow and who have substantial equity built in their homes. This type of loan is not right for everyone. To help protect senior borrowers who are considering HECM, the government has set in place some reverse mortgage safeguards. If you are a resident of Redondo Beach, Torrance, Hermosa Beach, Rancho Palos Verdes, Palos Verdes Peninsula, San Pedro, or surrounding California, and considering a reverse mortgage, contact us today. We can discuss your eligibility for reverse mortgage and determine if this type of loan makes sense for you.
Meeting HECM Qualifications
There are certain requirements set forth through the FHA that ensure that the right type of borrowers receive these loans. Only approved private lenders, like Corban Financial Group, are legally allowed to offer this type of loan. We help educate clients on eligibility requirements as they begin to explain their financing options. Certain baseline requirements exist, including that borrowers must:
- Be age 62 or older
- Live in their HECM mortgaged homes as their primary residences
- Have substantial built into their homes
- Have no outstanding federal debts
- Own a single-family, 2-4-unit residence or pre-approved condominium or manufactured home
The HECM Consumer Information Session
Before the HECM will insure a reverse mortgage, borrowers must participate in a consumer information session given by an HUD-approved HECM counselor. This counseling session serves as a senior safeguard to help ensure that the right clients are approved for this type of loan. During the session, which can be done in person or on the phone, the counselor will:
- Explain the pros and cons of reverse mortgage
- Gain an understanding of the reasons a senior is seeking a reverse mortgage
- Explain the terms of reverse mortgage and what happens if the senior chooses to move out of their home or when they die
- Ensure that no one is pressuring the senior into a reverse mortgage or providing misinformation
While Corban Financial Group is here to answer your questions about reverse mortgage, we encourage you to take full advantage of your counseling session with an HECM-approved counselor. He or she can provide objective advice and information on this type of loan so you can have peace of mind.
Explore Your HECM Options Today
Reverse mortgage senior safeguards are here to help ensure the right people are connected with the right loans. If you are considering an HECM, contact Corban Financial Group today. We serve clients in Redondo Beach, Torrance, Hermosa Beach, Rancho Palos Verdes, Palos Verdes Peninsula, San Pedro, and surrounding communities. We pride ourselves on connecting clients with great loan options for long-term success.