Services for Older Adults
Be
aufort, Bertie, Hertford, Martin, Pitt

 

Reverse Mortgage

Reverse Mortgage is a loan against your home that you do not have to pay back as long as you live in the house. The HUD- Home Equity Conversion Mortgage (HECM) and Fannie Mae's Homekeeper are the products currently offered in NC. Most loans made in our state are through the HECM program so the information below reflects specifics to that program.

 

     
To be eligible for a HECM, the:
  • owner must be 62 years of age or older;
  • at least one owner must live in the home as a primary residence;
  • home must be a single family residence in a 1-4 unit dwelling, or meet HUD approved requirements;
  • home must meet minimum property standards; and
  • borrower must meet with a HUD-approved counseling agency.

The amount of money you can get depends on the age of the youngest borrower, current interest rates, and the home's value or maximum mortgage limits for the area. Consumers can receive their money in a variety of ways:

  • single lump sum
  • creditline
  • monthly cash advances for a specific period of time or for as long as the last borrower lives in the home
  • tenure
  • combination

Reverse Mortgages are generally due and payable when the last surviving borrower dies, sells, or moves although other triggers can call the loan such as not paying taxes/insurances, allowing the home to become in a state of disrepair, etc. A safeguard with Reverse Mortgages are that they are non-recourse loans so the borrower never owes more than the value of the home.

North Carolina has separate legislation regulating Reverse Mortgages in our state. According to North Carolina law, if you apply for a reverse mortgage loan you must receive counseling from a housing counselor certified by the North Carolina Housing Finance Agency. The counseling session is designed to help older consumers make an informed decision about a Reverse Mortgage. For a list of organizations that are HUD-approved for Home Equity Conversion Mortgage Counseling, whose staff meet the North Carolina Housing Finance Agency’s current requirements for Certified Reverse Mortgage Counselors, visit www.nchfa.com. Lenders must be listed through the Commissioner of Banks in our state. For a list of approved lenders in NC, visit their website at http://www.nccob.org/NCCOB/Mortgage/ReverseMortgage/.

AARP has excellent information in their publication, "Reverse Mortgage: A Guide for Consumers" and on their website. Visit their website at www.aarp.org.

If you live in Beaufort, Bertie, Hertford, Martin, or Pitt counties and are interested in a finding out more about a Reverse Mortgage, please contact Beth Harrell at 252-974-1836 or bharrell@mideastcom.org. We offer counseling services by appointment only. Our office is open Monday through Thursday from 7:00 am - 6:00 pm.

 

 
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