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Housing Counseling FAQ
Q

For a homeowner receiving Home Equity Conversion Mortgage (HECM) counseling, must the agency address the decision to purchase a home and the selection and purchase of a home, and the sale or other disposition of a home?

Date Published: December 2016

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A

The agency must be prepared to address the entire process of homeownership (please see the FAQs for the definition of homeownership counseling). However, the agency need not address components that the housing counselor determines are not relevant to the client’s individual needs and circumstances, unless otherwise required under HECM program requirements, or if the client has requested it.

For all HECM clients, the purchase of a new home or selling of the home may be alternatives to obtaining a reverse mortgage on the client’s current home and therefore must be addressed. If the purchase of a new home or sale or other disposition of a home addresses the client’s housing need or problem, or if the client is interested in the HECM for purchase program, the agency must address the decision to purchase a home and the selection and purchase of a home and/or sale or other disposition of a home. However, if purchasing another home and/or sale or other disposition of a home does not address the client’s housing need or problem, it may not be necessary to address the decision to purchase a home, and/or sale or other disposition of a home unless otherwise required under HECM program requirements, since purchasing another home and/or sale or other disposition of a home is not an option that the clients want to pursue.

Please see the FAQs for information on how an agency may meet the requirement that they must address other components of the process of homeownership.


Tags: Housing Counseling Program Requirements on Other Specific HUD Programs - Home Equity Conversion Mortgages HECM Counseling Requirements

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FAQ ID:

3160