author: Tim Mansell

Modern Methods of Counselor Education in the Area of Reverse Loan Activities Have Made This Specialization an Attractive Career Option!

It would not be an understatement to say that among different types of financial loans the reverse loan has gained immense popularity recently. The reason for this is obvious: according to the current legislation this kind of loan is always taken against your house as it is, that is, the house is considered as the necessary and sufficient equity to be granted the loan against. Consequently, there is no necessity to provide the information on income level or the credit. Such information is not required in case of a reverse loan. And, as the result, the professional specialization of a reverse loan counselling has become a hot spot at the employment and recruitment market. But to become a proficient and successful loan counselor an aspiring candidate is in need of corresponding professional education, that is obvious. The traditional and online educational establishments have reacted to the growing demand by offering miscellaneous programs for proper education in financial and loan counselling. Let us have a closer look at what issues you will be dealing with as a loan counselor.

As it was mentioned above, in case of making a reverse loan the borrower needs one guarantee to produce - the house itself. It is the only guarantee, which is perfectly necessary and sufficient. The rumors about attractive loan conditions have spread around and resulted in explosive growth of the reverse loan popularity. At the same time the issue is not as simple as it looks to be. Still, there are some issues and restrictions to be taken into consideration. As a rule, the individuals interested in getting the reverse loan are concerned with the following issues, which we have compiled into a short, but comprehensive check-list for your convenience:

- Who Can Be Considered Fully Eligible for a Reverse Loan? What are the Necessary Qualifications?

The eligibility criterion of a reverse loan is the ownership of a house by a senior citizen or citizens. The candidates should own a house, live in it permanently and have equity left. You see, as simple, as that. The whole idea behind a reverse loan, when it was developed by the Government, was to make the financing available to the maximum number of senior citizens on the maximally simple and understandable conditions. In this way this loan was meant to become affordable to the maximum number of persons who are in position to use this attractive possibility. The requirements and necessary qualifications were intentionally made as simple as possible to facilitate the decision-making.

Any loan should be provided with a guarantee for a loan-giver. In case of a reverse loan the home equity, not entirely, but partly, is turned into the reverse loan. Consequently, that part of home equity becomes the guarantee for the loan-giver. That explains the fact that loan-giver does not require any information concerning the credit history or the level of income of the borrower; in this case it is not relevant information. In order to cut the long story short, let us wind it up: you should be at least 62 and you should permanently live in a house in which you still have equity left. This makes you eligible for the reverse loan

- Are There Any Restrictions as to the Number of Borrowers?

Since the whole idea of the reverse loan terms was making the loan maximally affordable and available to the maximum number of citizens, the terms are very liberal in the respect of number of borrowers too. As many as three borrowers would be acceptable to get the loan, but on one condition only - all the borrowers should be eligible for the loan. In other words, all three borrowers should be the owners of the house under the question, should reside in the house and should make use of it as a permanent place of habitation for minimum of six months a year. If these conditions are fulfilled then as many as three borrows are perfectly qualified for getting the reverse loan.

- What Types of Homes and Houses Are Acceptable for a Reverse Loan?

Practically all types of habitation can be used as equity for the reverse loan. The exception has been made for some types of mobile homes. As a rule, a typical acceptable house should include from 1 to 4 units. The borrower should be owner of at least one unit. Other acceptable types of habitation include houses for single families, FHA manufactured homes and condominiums approved by HUD. In case of doubts all the necessary additional information should be obtained from your lender or from the reverse loan counselor.

- Does the Reverse Loan Provide for the Possibility to Use the Advantages of The Traditional Mortgage at the Same Time with the Reverse Loan?

These two types of loans are completely different and you cannot use both at the same time as loans. That means, if you have not finished paying out your traditional mortgage and have some of it still left, and, at the same time, you decide to use the equity of the home (that is, to get a reverse loan), the remaining part of the traditional mortgage will have to be paid out with the funds of your reverse loan. So, it is up to you to decide. Try to make the wise and balanced decision.

Well, to wind it up, as you see, the counselor education will provide you with rather hefty volume of corresponding knowledge to be used as a professional federal counselor. Through getting this kind of education you will be able to take up a career as an independent reverse mortgage counselor, not in the service of any lender. You will be able to give assistance and guidance to the senior citizens, who are whishing to get a reverse loan. This is a socially significant, self-fulfilling job, which, at the same time, can be very attractive in the sense of financial incentives!