Reverse mortgages in North Carolina

North Carolina has its own Reverse Mortgage Act

North Carolina is one of the few states we serve that regulates reverse mortgages on top of the federal rules. The federal set still applies — 62 or older, principal residence, independent counseling, financial assessment — and the North Carolina Reverse Mortgage Act adds four things that change how your file runs:

• The lender must be authorised for reverse mortgages by the North Carolina Commissioner of Banks, separately from its ordinary mortgage licence. Ask any originator to show you that authorisation.
• Your counselor must be on the state's list. North Carolina certifies reverse mortgage counselors through its Housing Finance Agency, and a lender may not close without a certificate from a state-certified counselor. A counselor who is only HUD-approved may not count, so ask for the Commissioner's list before you book.
• You get the state's disclosures early. Within ten business days of your application, and at least twenty business days before closing, the lender must give you the state's written disclosures and the names of the certified counselors. A North Carolina file cannot be rushed from application to closing in two weeks.
• Ninety days' notice before any foreclosure. If the loan is ever called due, the lender must give at least ninety days' written notice before starting foreclosure.

Two programmes that look alike and are not

North Carolina offers two senior property tax programmes, and the difference between them matters a great deal if you are also taking a reverse mortgage.

• The Homestead Exclusion — for homeowners 65 and older, or permanently disabled, within an income limit. It excludes a portion of your home's value from taxation. The benefit is permanent and creates no obligation.
• The Circuit Breaker Tax Deferment — caps your tax at a percentage of income, but defers the remainder rather than forgiving it. Deferred taxes accumulate and become a lien on the property, generally payable on sale, death, or if the home stops being your permanent residence. When that happens, the most recent three years of deferred taxes come due with interest.

Most borrowers are better served by the Homestead Exclusion where they qualify for both. Confirm which you are actually in — people are frequently unsure.

What "enough equity" looks like in North Carolina

North Carolina values sit near the national middle outside the Charlotte and Raleigh-Durham metros, where they run higher. The $1,249,125 FHA lending limit rarely binds, so a standard HECM is usually the right product.

Manufactured homes are more common here than in the northeastern states, and they can qualify — but only if built after June 1976, permanently affixed to a foundation, titled as real property rather than as a vehicle, and on land you own. Homes in leased-land parks do not qualify. The full property rules are here.

Counseling in North Carolina

Counseling is required, and in North Carolina the counselor must be certified by the state and listed with the Commissioner of Banks. Ask the lender for that list before you book, because a counselor who is only HUD-approved may not count. We do not choose your counselor and receive no part of the fee. HUD's directory is at hud.gov/findacounselor or by calling 1-800-569-4287.

What the session actually covers, and how to get your money's worth from it.

The rest is the same everywhere

Beyond the above, a North Carolina reverse mortgage works the way it works nationally. You keep the title. There is no monthly mortgage payment for as long as you live there and meet your obligations. The loan is non-recourse, so neither you nor your heirs can ever owe more than the home sells for. Any existing mortgage is paid off at closing unless you use a second-lien product.

• How a reverse mortgage actually works
• Whether you qualify
• What it costs
• Every option compared, including the ones we do not sell

Licensed in North Carolina

Robert Erath, NMLS #297076, is licensed to originate in North Carolina through United Mortgage Corp, NMLS #1330. Verify either licence independently at nmlsconsumeraccess.org — you should do that with every originator you speak to, not just this one.