A reverse mortgage allows homeowners age 62+ to convert a portion of their home equity into cash while they continue to live at home, provided certain loan obligations are met. If you or an older adult you know is considering a reverse mortgage, you must first receive counseling from a government-approved agency.

Learn about reverse mortgage counseling, what to expe`ct from your counseling session, and what costs may be involved.

What is reverse mortgage counseling?

Reverse mortgage counseling is a required educational session with a HUD-approved counselor that you must complete before applying for a federally insured reverse mortgage. The counselor explains how the loan works, reviews alternatives, and helps you decide whether it's the right choice for your financial situation.

Reverse Mortgage Counseling at a Glance

• Required before applying for a federally insured reverse mortgage
• Conducted by a HUD-approved counselor
• Explains costs, risks, benefits, and alternatives
• Usually takes 1–2 hours
• Ends with a counseling certificate required by lenders

The goal of reverse mortgage counseling is to help you understand your options and make informed decisions about using a reverse mortgage. Quick note: Completing counseling does not obligate you to take out a reverse mortgage. The certificate simply confirms you've completed the required education.

What do reverse mortgage counselors do?

Reverse mortgage counselors are trained professionals who can:

• Help you evaluate the pros and cons of whether a reverse mortgage is right for your situation
• Explain alternatives that may better meet your financial needs
• Screen you for public and private benefits that can help you pay for needs like utilities, groceries, and medications
• Connect you to other services that can help you balance your budget and stay independent longer

Your counselor may use a questionnaire called the Financial Interview Tool to better understand your needs and financial situation.

“A reverse mortgage counselor will walk you through how a reverse mortgage works, including your payment options, costs, tax considerations, and the potential benefits and drawbacks,” says Jessica Johnston, NCOA Senior Strategist for Economic Well-Being. “What they won’t do is try to convince you to pursue a reverse mortgage or tell you to choose one reverse mortgage product over the other.”

Your counseling session may be done over the phone or in person and can take one to two hours to complete. Once you’re finished, you will receive a certificate that lenders require in order to move forward with the loan application (if you decide to). This certificate shows you’ve completed the mandatory counseling.

What is the difference between reverse mortgage counseling and lending?

Reverse mortgage counseling and reverse mortgage lending serve two very different purposes:

• Reverse mortgage counseling is a neutral, independent educational session with a HUD-approved counselor. The counselor explains how a reverse mortgage functions and answers your questions. The counselor does not work for a lender or sell reverse mortgage products.
• Reverse mortgage lending is the process of applying for and receiving the loan from a lender. The lender evaluates your eligibility, explains the loan terms, processes your application, and, if you're approved, issues the reverse mortgage.

In short, counseling helps you decide whether a reverse mortgage is a good choice for you, while lending is the process of getting the loan if you choose to move forward.

Who needs reverse mortgage counseling?

Anyone applying for a federally insured Home Equity Conversion Mortgage (HECM)—the most common type of reverse mortgage—must complete counseling with a HUD-approved agency before the lender can process the application.

Does reverse mortgage counseling cost me anything?

Yes. There is an upfront fee for this service, which is typically paid at the time of counseling. You may delay payment until the mortgage closing if your current income falls below 200% of the Federal Poverty Guidelines. If you're facing financial hardship—such as foreclosure, disability, bankruptcy, or receiving respite or hospice care—you may be able to delay paying the counseling fee until later.

How do I find a reverse mortgage counselor near me?

If you're thinking about a reverse mortgage, you can get counseling through a partnership between the National Council on Aging (NCOA) and GreenPath Financial Wellness. GreenPath is a HUD-approved nonprofit agency rated A+ by the Better Business Bureau (BBB). To schedule a counseling session with NCOA/GreenPath, call 1-800-550-1961 (toll-free).

You can also:

• Use the HUD.gov agency finder to locate an approved counseling agency in your area.
• Use the Consumer Financial Protection Bureau's housing counselor lookup tool (enter your ZIP code to get started).
• Call HUD at 1-800-569-4287 (202-708-1455 TTY).