2: Counseling: Consumers are required to get counseling from a HUD certified Reverse Mortgage Counselor. There is no cost for this service. The counselor will explain different options available to you and make certain you are eligible for a Reverse Mortgage. You will be issued a housing counseling certificate if you qualify for a Reverse Mortgage.

3: Application/Disclosure: You will fill out an application for a Reverse Mortgage and select the payment options you prefer: fixed monthly life, 5 years, 10 years, lump sum payment or line of credit or a combination of the above. At this time a Truth in Lending statement will be given to you. We will collect certain documents, including the original housing counseling certificate and an applicable credit report fee.

4: Processing: We will process the loan, order the appraisal (to determine the value) title work, lien payoffs, credit reports and verification of deposit (if required). The appraiser prepares appraisal report. If structural problems are noted or suspected, a physical inspection of the home is ordered.

5: Underwriting: After receiving all pertinent information and data we will finalize loan parameters with you (i.e., payment options, annuity or not, frequency of loan interest rate adjustments). We will package the loan and submit to underwriting for final approval.

6: Closing: Following approval, closing of your loan is scheduled. Initial and expected rates are set. These affect the amount of funds available to you along with the age of all borrowers and the value of the home.

7: After closing: You are given three (3) business days to review you documents after you have signed in which you can cancel the loan (3 day right of recission). Upon expiration of this period the funds are disbursed and you get the selected benefits (i.e. lump sum, monthly check or line of credit).

8: Repayment: You do not make any monthly payments as long as you or the co-borrower live in the home. The Reverse Mortgage becomes payable upon: the death of the borrower or last co-borrower; the sell of the home by the borrower (s); a permanent move from the home by the borrower(s), (i.e. to a nursing home, or another event after which the home is no longer the borrower?s principal residence). The loan may be repaid by the borrower(s) estate, with or without a sale of the home. The repayment obligation generally can?t exceed the home?s value or sales price. If deferred annuity has been purchased as part of the transaction, this will usually provide continued monthly income to the borrower.

If the Reverse Mortgage balance exceeds the value of the home when the last co-owning applicant dies, sells or moves, the difference is covered by the Federal insurance.

The amount owed is limited to the net sale of the Home. Neither the senior, nor the heirs have any Personal liability beyond the sale.

In most cases a Reverse Mortgage does not affect social Security or medicare benefits. Check with your benefits Counselor for more information. The money is tax free.