According to HUD, a reverse mortgage is a special type of home loan that lets homeowners over the age of 62 convert a portion of the equity in their home into cash. The equity that has been built up over years of making mortgage payments can be paid to the homeowner. Reverse mortgage counseling is required by all lenders. Certified counselors will educate interested homeowners about a reverse mortgage, discussing the pros and cons of taking one as well as the costs involved and other alternatives.
- To get started, complete an online Intake by clicking here. Alternatively, you can download a form and complete an intake form by clicking here.
- You may download the reverse mortgage counseling packet by clicking here but do not complete or submit the counseling packet until you are contacted by an AHA staff person. We will contact you after receiving your online intake. Intakes may also be completed over the phone by calling 732-389-2958.
Frequently Asked Questions:
- Who is Eligible: Homeowners over the age of 62 who are willing to use their primary residence as collateral. Applicants should have no delinquencies on any federal debt. Property needs to appraise for more than the unpaid principle balance if there is an existing mortgage.
- How Much Can a Homeowner Receive: This varies by loan. Some of the contributing factors include the current interest rate, the age of the homeowners and the value of the property.
- Is There a Fee for Counseling Services: The Affordable Housing Alliance charges $125 for reverse mortgage counseling but this can be waived depending on the homeowner’s financial situation and available grant funding