GreenPath Debt Solutions announced it’s providing free reverse mortgage counseling for seniors interested in HECM loans.
“Reverse mortgages are not for everyone, but for some, it’s a viable option that should be considered,” said Setina Briggs-Kelly, housing manager for GreenPath Debt Solutions.
Reverse mortgages enable homeowners age 62 or older to convert their home’s equity into cash. The cash can be used as the homeowner sees fit, but is typically used for home improvements, medical expenses, and other living expenses.
“A reverse mortgage is a loan where the lender advances money to the homeowner based upon the equity in the home,” said Briggs-Kelly. “The amount of the loan a homeowner is eligible for depends upon the amount of equity in the home and the age of the borrower.” She went on to explain that the homeowner is not required to repay the loan as long as they live in the home. The loan is repaid when the last surviving borrower dies or decides to sell the home.
According to the Department of Housing and Urban Development, the agency received a $500,000 grant to provide HECM counseling.