Why it exists
Reverse mortgages are complicated, permanent, and sold to people who are sometimes under pressure. Congress's answer was to put an independent party between the borrower and the lender, and to require that conversation before an application can be taken.
The counselor is employed by a HUD-approved agency, is not compensated by any lender, and has no interest in whether you proceed. We do not choose your counselor and we receive no part of the fee. If any loan officer offers to arrange a “preferred” counselor for you, that is a reason to change loan officers.
What the session covers
- How a reverse mortgage works, and what it will cost you over time
- Your financial position, and whether this actually addresses the problem you have
- Alternatives — including selling, a HELOC, or doing nothing
- The consequences for your heirs and your estate
- Your ongoing obligations: taxes, insurance, occupancy, upkeep
- Whether proceeds could affect Medicaid or SSI, if those apply to you
Sessions run 60 to 90 minutes, by phone or in person. Some agencies require a short financial questionnaire beforehand. You will receive a certificate at the end; the application cannot be submitted without it.
What it costs
Typically $125 to $200. Agencies must waive or reduce the fee for borrowers who cannot afford it, and many do so on request. The fee can sometimes be financed into the loan, but paying it directly is cleaner — and it keeps the counselor's independence obvious.
How to find a counselor yourself
Do not take the list from your lender. Get it from the source:
- HUD's counselor search: hud.gov/findacounselor
- By phone: 1-800-569-4287, HUD's counseling referral line
- The CFPB's directory: consumerfinance.gov/find-a-housing-counselor
Get your money's worth
Most people treat counseling as a box to tick and answer politely for an hour. It is the one conversation in this process with someone who does not care whether you sign. Come with questions. Ask what they have seen go wrong. Ask what they would want to know if it were their mother. Ask directly whether they think this fits your situation — they are allowed to say no, and sometimes they do.
Bring your adult children if they are involved. Counselors welcome it, and a family that has heard the same explanation at the same time argues about it far less later.
What to have ready
- A rough picture of income and monthly expenses
- Your current mortgage balance and payment, if you have one
- Annual property tax and homeowners insurance figures
- An estimate of the home's value
- Any estimate a lender has already given you — counselors will review it with you
Nothing needs to be exact. If you have run our calculator, print the result and take it in.
What this estimate is, and what it is not
These figures are an illustration for planning only — not a loan offer, not a commitment to lend, and not a guarantee of what you will receive. Your real numbers depend on a completed appraisal, the expected interest rate on the day your FHA case number is assigned, your existing mortgage payoff, and a HUD financial assessment. A reverse mortgage is a loan that must be repaid, not a government benefit. You remain responsible for property taxes, homeowners insurance and upkeep, and the loan can become due if you stop meeting those obligations.