The process
How do you apply for a reverse mortgage?
Seven steps, 45 to 60 days. The mandatory counseling session is step two, and it is the one most people find genuinely useful.
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Education and research
Contact one of our reverse mortgage specialists and we will build a comparison of the programs that fit your specific situation, then walk through each option with you.
We also encourage you to consult independent sources: the National Reverse Mortgage Lenders Association, and the U.S. Department of Housing and Urban Development.
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Counseling
Once you have decided you want to proceed, you must attend reverse mortgage counseling. It is mandatory — we treat it as an educational checkpoint that confirms your own research.
Sessions average around $125 and typically run one to two hours. Depending on available state and federal funding, the cost may be waived by the counseling organization. Most sessions are done by phone, but you have the right to face-to-face counseling if you prefer.
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Application
After counseling, we schedule an appointment and walk you through the paperwork package. The application can be completed in person or by mail.
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Appraisal and escrow
Once we have your signed counseling certificate and completed application, we coordinate an appraiser to visit your home and determine its value. We also open escrow to order a title report and confirm there are no federal or state tax liens on the property. This usually takes one to two weeks.
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Underwriting
With the preliminary and inspection reports in hand, we review the loan package for completeness and compliance and submit it to the underwriter for approval. The underwriter may request further documentation.
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Closing
On final approval we set a signing appointment at the title company, or send a mobile notary to a location convenient for you. Signing takes about an hour. The executed documents are then returned to the lender for funding.
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Disbursement
By law, refinance loans carry a three-day right of rescission. After that waiting period the funds are disbursed and the loan is recorded with your county. Purchase loans are typically recorded and funded within two business days.
How long the whole thing takes
The application process itself generally runs 45 to 60 days from start to finish. The longer part is usually the decision that comes before it — the average applicant starts considering a reverse mortgage about six months before they apply, and spends several of those months reading and talking it over. That is normal, and it is time well spent.
The bottom line on qualifying
Two primary criteria: you must be at least 62 years old, and you must own a significant amount of equity in your home — typically at least 50 percent, though the exact figure varies by lender. There is no credit score or income requirement.