A reverse mortgage or Home Equity Conversion Mortgage (HECM) is a special type of mortgage loan that enables a home owner(s), 62 years of age or older, to tap into the equity they have in their home to meet their financial needs.  Payment options include regular monthly payments, a lump sum payment, a line of credit, or a combination of monthly payments and line of credit.  Repayment is required only when the borrower(s) no longer occupy the home as their principal residence.

HUD regulations require that the home owner(s) receive counseling/information about the implications of a reverse mortgage prior to application for a reverse mortgage.  The counseling sessions, which last approximately one hour, cover:  options available other than a reverse mortgage; presentation of the full financial implications of entering into a HECM; disclosure of tax consequences and possible changes of eligibility under state and federal programs and determination whether or not the home owner has entered into an estate planning contract (HUD regulations limit participation in these programs).  These sessions are structured to provide information only; all final decisions are the responsibility of the home owner(s).

To schedule an appointment for reverse mortgage counseling contact one of these two agencies:

CATCH Neighborhood Housing
George Helwig, Director of Education and Counseling
79 South State Street
Concord, NH 03301-3521
Tel: (603) 225-8835 ext 125
Direct Line: (603) 369-6557
Web: www.catchhousing.org
e-mail: ghelwig@catchhousing.org

For more information about reverse mortgages you may also want to check out these websites:

US Dept. of Housing and Urban Development (HUD) - About reverse mortgages for seniors

AARP - Reverse mortgage information

National Center for Home Equity Conversion - Frequently asked questions about reverse mortgages