HUD-approved counseling is a mandatory, protective step before any HECM. Here is what it involves and why it matters.
What does reverse mortgage counseling cover?
Reverse mortgage counseling is a required session with an independent, HUD-approved counselor who reviews how the loan works, its costs and fees, your payout options, your ongoing obligations to pay taxes and insurance, the impact on heirs, and alternatives such as downsizing or other home equity products. The counselor confirms you understand the loan and are not being pressured. Sessions can be completed by phone or in person and typically take 60 to 90 minutes. You receive a certificate required to proceed. This is a borrower safeguard, not a sales pitch. Call 1-800-MEDIGAP with questions about the process.
How much does counseling cost and how do you schedule it?
HUD-approved reverse mortgage counseling often costs around $125 to $200, though fees can be waived or reduced for lower-income borrowers, and some agencies offer it free. You can schedule it directly with any HUD-approved agency; lenders must provide a list and cannot steer you to a specific counselor. The session is independent of the lender to keep it unbiased. Completing it is required before your application can move forward, so it is wise to schedule early. Call 1-800-MEDIGAP and we will help you understand the step and connect you to the right resources.