3. NEXT STOP: Counseling

A reverse mortgage gave us a second lease on life.

Counseling is required for all HECMs. Reverse mortgages are the only financial product (perhaps the only product, period) that require this. Why? Caution. Because reverse mortgages are designed for an older audience who are often on fixed incomes and involves what is usually everyone’s most valuable asset—their home—government and the reverse mortgage industry want to make sure you have all the information you need to make the right decision. A counseling session can take place either face-to-face or by telephone. Counselors have been trained to deliver the required information either way. The session should generally last 90 minutes but can take longer as needed.




Prior to being counseled, you will receive an information packet from either the counseling agency, or the lender, depending on who you contact first.  This information packet will include the following materials:


No fees may be incurred by you or on your behalf, with the exception of a modest charge for a credit report, prior to completion of mandatory counseling.

A counselor will:

  • Explain a reverse mortgage to you;
  • Explain the various reverse mortgage product options;
  • Explain the costs;
  • See if you might be eligible for grant money or other financial assistance by utilizing BenefitsCheckup, a tool for identifying services, such as housing assistance, tax deferral programs, home repair grants or loans, food stamps, fuel assistance, social services or healthcare;
  • A counselor will not recommend that you obtain a specific product from any particular lender. His or her role is to provide information and clarity but not to advise;
  • Counseling generally costs in the vicinity of $125-250 per session. Some counseling agencies are awarded various grants that sometimes enable them to offer the service free of charge.