Reverse Mortgage Counseling

Reverse mortgage counseling is a free or low-cost meeting with a trained housing counselor. The counselor explains how a reverse mortgage works so you can decide if it's right for you.

Find out what a reverse mortgage is and what you can expect with reverse mortgage counseling.

What is a reverse mortgage, and can I get one?

A reverse mortgage is a loan for homeowners age 62 and older. It lets you use some of the value (equity) in your home to get cash.

Some things to know about a reverse mortgage:

• Unlike a regular home loan, you don't make monthly loan payments. Instead, you usually repay the loan when you sell your home, move out permanently, or pass away.

• To keep the loan, you must continue to pay your property taxes and homeowners insurance and keep your home in good condition.

• A reverse mortgage may be a good option if you plan to stay in your home for several years and need extra money.

But a reverse mortgage isn't the right choice for everyone. For example, the money from a reverse mortgage may affect your eligibility for some public benefits, such as Medicaid or Supplemental Security Income (SSI).

Before you can get a federally insured reverse mortgage, you must meet with a reverse mortgage counselor approved by the U.S. Department of Housing and Urban Development (HUD).

How does reverse mortgage counseling work?

The counseling session can take place by phone or in person. During the meeting, the counselor will:

• Explain how a reverse mortgage works.

• Review the costs and fees.

• Talk about the pros and cons.

• Explain how the loan could affect your home, your heirs, and your public benefits.

• Discuss other options that may meet your needs.

The counselor does not tell you what to do, and they won’t try to sell you anything. Their job is to review your situation and give you the information you need to make the best decision.

There is an upfront fee for this service that is usually paid at the time of counseling. You may not have to pay this fee if you are an older adult who is facing financial hardship.

How do I get reverse mortgage counseling?

If you're thinking about getting a reverse mortgage, you can get counseling through a partnership between the National Council on Aging (NCOA) and GreenPath Financial Wellness, a nonprofit approved by HUD.

These counseling sessions usually last 1 to 2 hours. A trained counselor will explain how reverse mortgages work, answer your questions, and help you understand your options. They can also help you find benefits and community services you may qualify for.

To schedule a counseling session with NCOA/GreenPath, call 1-800-550-1961 (toll-free). You can also work with another HUD-approved counselor in your area. Visit the HUD website to find agencies near you.