Quick Answer
During a reverse mortgage counseling session, a HUD-approved counselor walks you through how the loan works, your projected costs and proceeds, your ongoing obligations (taxes, insurance, upkeep), and alternatives to a reverse mortgage. It's an educational conversation — not a test you can fail — typically lasting about an hour, after which you receive the counseling certificate needed to move forward.
Before You Call: Scheduling Your Appointment
To schedule a HUD counseling session, contact a HUD-approved agency directly using the HUD locator at hud.gov or 1-800-569-4287. You will schedule a phone appointment at a convenient time — most sessions happen within a few days of calling. Before your appointment, gather your most recent mortgage statement, property tax bill, homeowners insurance page, and a rough estimate of your home's value. Having these in front of you helps the counselor personalize the conversation.
The Opening: Introductions and Purpose
The counselor will introduce themselves and explain that they work for an independent, non-profit housing counseling agency — not for any lender or broker. They will explain the purpose of the session: to make sure you have complete, unbiased information about reverse mortgages before making a decision. They will ask you a few basic questions about yourself and your home to personalize the conversation.
Core Topic 1: How Reverse Mortgages Work
The counselor will explain the mechanics of a HECM — how the loan is structured, how interest accrues, what payment options are available (lump sum, line of credit, monthly payment, or a combination), and how and when the loan becomes due. They will use your age and home value to illustrate realistic scenarios. This section typically takes 15–20 minutes.
Core Topic 2: Costs and Financial Impact
The counselor will walk through the costs of a reverse mortgage: the FHA mortgage insurance premium (MIP), origination fee, appraisal fee, title and closing costs, and ongoing interest. They will explain how the loan balance grows over time and what that means for your home equity. They will also provide a Total Annual Loan Cost (TALC) comparison so you can see the long-term financial picture.
Core Topic 3: Your Obligations and Rights
The counselor will explain your ongoing obligations as a borrower: continuing to live in the home as your primary residence, paying property taxes, maintaining homeowners insurance, and keeping the property in good repair. They will also explain your rights — including the three-day right of rescission (you can cancel within three business days of closing), protection against owing more than the home is worth, and the right to choose any HUD-approved counselor regardless of lender preference.
Core Topic 4: Alternatives to a Reverse Mortgage
A key part of the session is reviewing alternatives. The counselor will explain options such as: a HELOC or home equity loan, selling and downsizing, property tax deferral programs (available in California for seniors), government assistance programs (Medi-Cal, SSI supplements, utility assistance), and family financial support arrangements. The counselor is not trying to talk you out of a reverse mortgage — they are ensuring you have considered all options.
Your Questions and Personal Situation
The counselor will ask about your specific financial situation: your income, existing mortgage balance, property tax and insurance costs, and your goals for the loan proceeds. They will tailor their guidance to your specific scenario. This is also your opportunity to ask any questions you have. There are no bad questions — if you prepared a list in advance (Reverse Mortgage Plus advisors can help with this), bring it and work through it.
At the End: The Counseling Certificate
After completing the session — typically 60–90 minutes — the counselor issues a signed Counseling Certificate. This document certifies you completed the required education and is valid for 180 days. You will need this certificate to move forward with your loan application. Some agencies email it same-day; others mail a physical copy within a few days. Your Reverse Mortgage Plus advisor will need a copy to submit with your application.
