A real, anonymized closing
What a real reverse mortgage closing actually looked like
This is an itemized closing statement based on a California FHA HECM on a home valued at about $820,000, with the homeowner's identity removed and origination shown at the standard FHA maximum. Your figures will differ — but this shows you how the costs break down on a true-to-life file, not a rounded teaching example.
Sample home value: $820,000
The origination fee is negotiable
FHA allows up to $6,000 in origination on a loan this size, so that's the standard figure shown here. It's a ceiling, not a fixed price — Miguel can sometimes negotiate it lower, while many lenders simply charge the full cap.
What a real reverse mortgage closing actually looked like| Loan & lender feesPaid to paid to the broker / lender |
|---|
| Loan origination feeShown at the standard $6,000 FHA maximum for a loan this size — origination can sometimes be negotiated lower. | $6,000 |
| Document preparation | $206 |
| Credit report | $117.42 |
| Flood certification | $6 |
| MERS registration | $23.70 |
| Subtotal | $6,353.12 |
| FHA mortgage insurancePaid to paid to hud / fha |
|---|
| Upfront mortgage insurance premium (MIP)2% of the Maximum Claim Amount — this funds the FHA non-recourse guarantee. | $16,400 |
| Subtotal | $16,400 |
| AppraisalPaid to paid to the fha appraiser |
|---|
| Appraisal fee | $875 |
| Appraisal re-inspectionOnly when the appraiser must re-verify a completed repair. | $225 |
| Subtotal | $1,100 |
| Title & escrow (settlement)Paid to paid to the title & escrow companies |
|---|
| Settlement / closing fee | $750 |
| Lender's title insurance | $660 |
| Signing / notary fee | $275 |
| Escrow administrative feesDocument prep, wire, messenger, and archive fees combined. | $230 |
| Title servicesSub-escrow, recording service, endorsements, and wire combined. | $373 |
| Subtotal | $2,288 |
| Government recordingPaid to paid to the county recorder |
|---|
| County recording charges | $425 |
| Subtotal | $425 |
| HUD counselingPaid to paid to the hud-approved agency |
|---|
| HUD-approved counseling$0 on this file — counseling typically runs $0–$200 and is sometimes waived. | $0 |
| Subtotal | $0 |
| Total closing costs | $26,566.12 |
|---|
Nearly all of these costs are financed into the loan rather than paid in cash — for most borrowers the only out-of-pocket cost is the appraisal.
Download this sample (PDF) PDF · $26,566.12
Real but representative — a single anonymized closing on an ~$820,000 home. Not an offer, approval, or guarantee; your costs depend on your appraised value, age, and rates. "FHA-insured" and non-recourse apply to the HECM.