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Reverse mortgage counseling available free to Arkansans 2010-01-04 Thanks to a grant from the Department of Housing and Urban Development, Credit Counseling of Arkansas will provide no-cost reverse mortgage counseling to older residents of the state. Counseling sessions - which take place at CCOA's offices in Bentonville or Fayetteville or over the phone - typically cost $125. Sessions will be free until the $18,000 grant provided by HUD is exhausted, CCOA said recently. Homeowners who apply for a home equity conversion mortgage, the most popular type of reverse mortgage by far, must undergo Federal Housing Administration-approved counseling before moving ahead with the application process. FHA wants seniors to be well-informed about reverse mortgages, but the cost of counseling is just one expense that applicants must contend with. Others include closing costs and ongoing maintenance expenses on their property. And unlike a regular mortgage, reverse mortgages generally don't include an escrow account that will pay property tax bills. Older homeowners who take out a reverse mortgage to gain access to cash must set aside enough to pay their tax bill. Reverse mortgages are complicated instruments, and seniors must make sure they understand them before applying. Counseling sessions like CCOA's can be vital, even if a session isn't mandated.  |
