Reverse Mortgage Process and Timeline
The reverse mortgage process generally includes education, an early review, counseling, application, appraisal, final loan review, closing, and ongoing homeowner obligations.
Before you decide
- Counseling and final loan review are separate steps.
- The appraisal and program calculations affect final proceeds.
- Closing does not end homeowner obligations.
Typical Stages
The homeowner starts with education and an early review, then completes counseling, application, property review, final loan review, closing, and post-closing setup.
Where Delays Happen
Delays can happen around counseling completion, title, payoff figures, appraisal, property conditions, paperwork, or questions discovered during final review.
What To Ask
Ask what documents are needed, which numbers are still estimates, when counseling must occur, and what could change final approval or proceeds.
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
HECM borrowers must complete counseling with a HUD-approved reverse mortgage counselor before the loan can close.
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/U.S. Department of Housing and Urban Development - official
https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1Reviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.