Reverse mortgage counseling cost in 1970: how much HUD counseling costs and what's covered
Last updated: · Reviewed by Simply Approved Mortgages (NMLS #2620881)
HUD-approved counseling is the federally required first step before a HECM lender can take a formal application. The fee is typically $0–$200, depending on the agency and the borrower's income. This guide explains what's covered, how to choose a counselor, and how the fee-waiver process works for low-income borrowers.
Reviewed for accuracy by the Reverse Mortgage Division of Simply Approved Mortgages
Simply Approved Mortgages NMLS #2620881 · Independent reverse mortgage brokerage licensed to originate HECM loans
Last reviewed: January 1, 1970
What is a HUD reverse mortgage counseling fee?
Every HECM borrower must complete an independent counseling session with a HUD-approved agency before the lender can take a formal application. The counseling fee is set by each agency (not HUD), is disclosed to the borrower up front, and typically falls in the $0–$200 range. The fee can be paid in cash before the session or financed into the HECM at closing.
HUD permits agencies to waive or reduce the fee for borrowers with income below HUD-defined thresholds. If cost is a concern, ask the agency directly about its fee-waiver policy — agencies cannot deny counseling for inability to pay.
What's covered in the counseling session
- How a HECM works — loan structure, rate types, payout options.
- Costs and fees — upfront MIP, origination fee, third-party closing costs, servicing fees.
- Financial implications — Social Security, Medicare, Medicaid/SSI, taxes, estate impact.
- Alternatives — HELOC, cash-out refinance, downsizing, state/local senior programs.
- Consequences of default — property tax, insurance, HOA, and occupancy obligations.
- Non-borrowing spouse rules — Eligible vs Ineligible NBS protections.
- What happens to the home for heirs — non-recourse guarantee and payoff options.
Expert insight from Simply Approved Mortgages
The counseling session is the single most under-valued part of a HECM. It's the only conversation in the entire process with someone who has no financial stake in whether you close — and the counselor's HUD-mandated checklist forces every important question onto the table.
We recommend treating counseling as a real decision tool, not a checkbox. Bring a list of questions, invite a non-borrowing spouse or adult child if it helps, and don't schedule it until you have a draft proposal in hand so the counselor can walk through your actual numbers.
Simply Approved Mortgages NMLS #2620881. Reverse mortgage loans funded by third-party HUD-approved HECM lenders.
Need help scheduling HUD counseling?
We'll point you to HUD's official counselor list, walk through the fee-waiver process if relevant, and prep you with the right questions to ask.
- • Personalized HECM estimate based on your actual age and home value
- • Complimentary home value estimate when you provide your address
- • Side-by-side comparison of HECM vs. HELOC vs. cash-out refinance vs. downsizing
- • Help scheduling independent HUD-approved counseling
Reverse mortgage counseling cost — FAQ
- How much does HUD reverse mortgage counseling cost?
- Typically $0–$200 per counseling certificate, with most agencies charging in the $125–$200 range. Many HUD-approved agencies waive or reduce the fee for low-income borrowers using HUD's adjusted-fee guidance. The agency must disclose its fee before the session.
- Can the counseling fee be waived?
- Yes — HUD permits counseling agencies to waive or reduce fees for borrowers whose income is below HUD-defined thresholds. Ask the agency about its fee-waiver policy before scheduling. Agencies cannot deny counseling based on inability to pay.
- Can the counseling fee be paid out of HECM proceeds?
- Yes — the counseling fee can be paid in cash before the session, or financed into the HECM at closing (added to the loan balance). Most borrowers prefer to pay up front so it doesn't capitalize into the loan.
- How long is the counseling session?
- Typically 60–90 minutes. It can be done in person at a HUD-approved agency office or by phone — both methods produce the same certificate.
- What does the counselor cover?
- HUD requires the counselor to walk through: how a HECM works, the costs and fees, the loan structure and rate types, the financial implications for the borrower's situation, alternatives to a HECM (HELOC, downsizing, etc.), and the consequences of default. The counselor is independent and cannot recommend a specific lender.
- How do I find a HUD-approved counselor?
- Use HUD's official locator at hud.gov (search 'HECM counseling roster') or call HUD's HECM Counseling Network. Avoid any 'counselor' a lender pushes you toward exclusively — counselors must be independent under HUD rules.
- Is the certificate transferable between lenders?
- Yes. The HECM counseling certificate is valid for 180 days and can be used with any HUD-approved HECM lender. You don't need to re-counsel if you switch lenders within that window.
- Can a spouse or family member attend?
- Yes — and we recommend it for any non-borrowing spouse, especially an Eligible Non-Borrowing Spouse. Adult children involved in the decision are also welcome. The certificate is issued in the borrower's name.
Keep learning about reverse mortgages
Where we're licensed — local guides
- Florida reverse mortgage guide
Statewide HECM rules, OFR oversight, homestead notes.
- Colorado reverse mortgage guide
Statewide HECM rules and DORA mortgage-broker oversight.
- Naples, FL
Collier County HECM and jumbo scenarios.
- The Villages, FL
Active-adult HECM scenarios across Sumter, Lake, Marion.
- Miami, FL
Miami-Dade condo FHA approval and HECM.
- Denver, CO
Front Range HECM scenarios.
References & sources
Every statistic, program rule, and regulatory claim on this page is sourced from the primary U.S. government agencies and industry bodies listed below. We never source program facts from competing brokers, blogs, or unverified secondary sources.
- HUD ML 2010-25 — HECM Counseling Fee Policy
- HUD — Find a HECM Counselor
- HUD — HECM Program
- CFPB — Reverse Mortgages
Source links are maintained by Simply Approved Mortgages and verified periodically. Federal program rules can change — always confirm current-year specifics with HUD, the CFPB, or a HUD-approved counselor before acting on any information on this page.
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Documents required for a reverse mortgage
When you apply for a HECM reverse mortgage, your lender will request documents that verify your identity, property ownership, income, and assets. Gathering these in advance can speed up your estimate and application.
- Government-issued photo ID
Current driver’s license, passport, or state-issued ID.
- Social Security number verification
Social Security card or award letter showing your SSN.
- Current mortgage statement
Most recent statement if refinancing; purchase agreement if buying.
- Homeowner’s insurance declarations page
Shows current coverage, premium, and mortgagee clause.
- Property tax statement or receipt
Latest county tax bill showing taxes are current or payment history.
- Bank statements
Last 1-2 months to verify closing funds and residual reserves.
- Investment or retirement accounts
Recent statements for IRA, 401(k), brokerage, or other liquid assets.
- HOA or condo information
Homeowners association statement or condo questionnaire if applicable.
- Trust or title vesting documents
Required when the home is held in a living trust or entity.
- Flood insurance declaration
Current policy if the property is in a flood zone.
- HUD-approved counseling certificate
Required before loan application. Obtained from a HUD-approved reverse mortgage counselor.
Why we pull credit for your reverse mortgage pre-approval
HUD requires a Financial Assessment for every HECM reverse mortgage. That includes a tri-merge credit report so we can verify your identity, review your obligations, and confirm you can continue paying property taxes, homeowners insurance, and maintenance after closing.
Pay for your credit report — SmartPay
Simply Approved Mortgages uses MeridianLink SmartPay to securely collect the credit report fee for your reverse mortgage pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks your tri-merge report (Equifax, Experian, TransUnion) so your specialist can complete your HUD Financial Assessment.
- Secure, PCI-compliant checkout hosted by MeridianLink
- Required for a formal HECM pre-approval decision
- Soft-touch process — your loan officer will guide you through it
You'll be redirected to cic.meridianlink.com (SmartPay).
Check your credit first — $1 trial at MyITINCredit
Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.
- See all 3 bureau reports & scores before your lender does
- Ongoing monitoring alerts you to new accounts or score changes
- Fix errors early — cleaner credit can widen your reverse mortgage options
You'll be redirected to myitincredit.com. Third-party service — terms apply.
Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages (NMLS #2620881) does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.
Have Questions? Talk to a Reverse Mortgage Specialist
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