Reverse Mortgage Counseling
HECM borrowers must complete counseling with a HUD-approved reverse mortgage counselor before the loan can close.
Before you decide
- Counseling is separate from the lender sales process.
- The session is designed to review costs, obligations, alternatives, and consequences.
- Counseling completion is not the same as loan approval.
What Counseling Does
Counseling helps the homeowner understand the reverse mortgage before closing. It should cover obligations, alternatives, costs, repayment events, and practical risks.
What To Prepare
Borrowers should prepare questions about the existing mortgage, property charges, heirs, non-borrowing spouses, future moves, repairs, and what happens if the household plan changes.
What Counseling Does Not Do
Counseling does not determine final loan approval. The lender still reviews eligibility, property, appraisal, title, equity, and financial assessment.
Common Questions
Can a reverse mortgage pay off my existing mortgage?
A reverse mortgage may pay off an existing mortgage at closing if the homeowner qualifies and available proceeds are sufficient after program calculations, liens, and costs.
Do I still own my home with a reverse mortgage?
The homeowner keeps title to the home, but the reverse mortgage is a loan secured by the property and the borrower must keep meeting loan obligations.
When should a homeowner avoid a reverse mortgage?
A reverse mortgage may not fit if the homeowner expects to move soon, cannot keep taxes and insurance current, cannot maintain the home, or has better alternatives after reviewing the full household plan.
Keep reading
A HECM is the FHA-insured reverse mortgage program for eligible homeowners and requires HUD-approved reverse mortgage counseling before closing.
Reverse Mortgage RequirementsReverse mortgage approval depends on age, living in the home, property type, equity, counseling, financial review, and the homeowner's ability to keep loan obligations current.
Reverse Mortgage CostsReverse mortgage costs can include origination, mortgage insurance for HECM loans, third-party closing costs, servicing-related costs, and interest according to the loan terms.
Where this information comes from
U.S. Department of Housing and Urban Development - official
https://www.hud.gov/program_offices/housing/sfh/hecmConsumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/answers/key-terms/Consumer Financial Protection Bureau - regulator
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/Reviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.