Before anyone can apply for a Home Equity Conversion Mortgage (HECM), HUD requires a session with an independent, HUD-approved counselor. It's one of the strongest consumer protections in the program, and it's nothing to dread. Think of it as a one-on-one review with someone who has no stake in whether you move forward.
The short version
| Question | Answer |
| Who has to attend? | Everyone who will be a borrower on the loan |
| When? | Before you apply, and before the lender orders an appraisal |
| How? | By phone, by video or in person |
| How long? | Usually 60 to 90 minutes |
| What does it cost? | Typically $125 to $200, set by the counseling agency |
| What do you get? | A certificate, generally good for six months |
Why it's required
A reverse mortgage is a big decision, and HUD wants every borrower to understand it before signing anything. The counselor works for a HUD-approved agency, not for the lender. Their job is to explain the loan, answer your questions, and make sure you've considered other options.
What the counselor covers
Expect a plain conversation about:
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How a HECM works and how interest adds to the balance over time
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The costs, including mortgage insurance and closing costs
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Your ongoing duties: living in the home, paying property taxes and insurance, and keeping it in good repair
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How you can receive the money, from a line of credit to monthly payments
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What happens for your spouse and your heirs
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How the loan could affect need-based benefits such as Medicaid or SSI
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Alternatives worth weighing, such as downsizing or other types of loans
The counselor may also look at your budget with you. That's not a test; it's to make sure the loan fits the life you want.
How to prepare
A little preparation makes the session more useful:
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Have your latest property tax bill, homeowners insurance details and any mortgage statement handy
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Jot down your monthly income and major expenses
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Write down your questions ahead of time
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Invite the people you'd want involved. Adult children and other family are welcome to join
After the session
You'll receive a counseling certificate. Your lender needs it to move forward, and it's generally valid for six months. There's no obligation to apply, even after you've completed counseling.
Your lender will give you a list of HUD-approved counseling agencies, and HUD lists them on its website too. You choose the one you're most comfortable with.
Frequently asked questions
Is reverse mortgage counseling mandatory?
Yes. Every HECM borrower must complete it with a HUD-approved counselor before applying.
Can I do it over the phone?
Yes. Most agencies offer phone or video sessions, and many also meet in person.
Does counseling commit me to anything?
No. It's there so you can decide with the full picture, and you can stop at any point.
Can my children come?
Yes. Many families find it helps everyone understand the plan together.
How do I choose a lender after counseling?
Our guide to vetting reverse mortgage lenders covers what to ask.
Have questions before counseling?
Our advisors are happy to walk you through the basics first. Call 385-340-3880 or check your eligibility online.
This article is for educational purposes and is not financial advice. A reverse mortgage is a loan that must be repaid. Consult a licensed advisor and complete HUD-required counseling before proceeding.