HomeBridge · Counseling & Process · 11 min read · Updated June 2026
HECM Counseling: Requirements, Cost & How It Works (2026 Guide)
HUD requires every borrower considering a Home Equity Conversion Mortgage (HECM) to complete an independent counseling session before they can apply. This isn't optional and it isn't a sales meeting — it's a federally mandated educational session designed to make sure you fully understand what you're signing up for. Without a signed counseling certificate, no FHA-approved lender can move your application forward.
This guide explains what HECM counseling covers, how long it takes, what it costs in 2026, how to find an approved counselor, and what to bring to your session. Use it to prepare so you walk in informed and walk out confident in your decision — whether that's moving forward with a reverse mortgage, exploring alternatives, or deciding it isn't right for you.
What is HECM counseling and why is it required?
HECM counseling is a one-on-one session with a HUD-approved third-party counselor who is not employed by or compensated by your lender. The session is required under 24 CFR § 206.41(a) and Section 255(f) of the National Housing Act. Its purpose is to protect older homeowners from predatory lending and to make sure every borrower gives informed consent before signing a reverse mortgage.
Counseling must be completed by every borrower on the loan, every non-borrowing spouse, and every non-borrowing owner listed on the deed. Your counselor is forbidden from recommending whether you should take the loan — their job is to educate, not sell. They walk you through how the product works, the alternatives, and the real long-term costs so you can make the decision yourself.
The full counselor curriculum and standards are set by HUD in HUD Handbook 7610.1.
What does a HECM counseling session cover?
HUD requires every session to walk through a standard curriculum. Your counselor must cover:
- How a reverse mortgage works — loan structure, how interest accrues, and the fact that there are no monthly principal and interest payments.
- Costs and fees — origination fees, the upfront and annual FHA mortgage insurance premium (MIP), servicing fees, third-party closing costs, and how interest rates affect your principal limit.
- Borrower responsibilities — property taxes, homeowners insurance, HOA dues, home maintenance, and the requirement to keep the home as your primary residence.
- Alternatives — HELOC, home equity loan, downsizing, selling outright, family loans, and government assistance programs you may qualify for.
- Tax implications — loan proceeds are not taxable income, but a large lump sum can have planning implications.
- Impact on government benefits — Medicaid and Supplemental Security Income (SSI) can be affected by large lump-sum distributions held in a bank account.
- Estate and heir impact — your heirs' options when the loan becomes due, and how the FHA non-recourse protection shields them.
- Maturity events — death of the last borrower, sale of the home, moving out for 12+ months, or default on property taxes or insurance.
- Total Annual Loan Cost (TALC) disclosure — the standardized comparison number HUD requires so you can compare offers.
- Your specific financial situation — the counselor must tailor the session to your circumstances, not give a generic overview.
Heads up: The counselor must ask probing questions about your financial situation and goals. Be ready to discuss your income, your monthly expenses, and what you'd actually do with the loan proceeds. The more honest you are, the more useful the session.
How much does HECM counseling cost in 2026?
Most HUD-approved agencies charge a flat fee in the $125 to $229 range. Here's how it typically breaks down:
| Counseling agency type | Typical fee | Notes |
|---|---|---|
| National HUD intermediary (MMI, GreenPath, NFCC) | $125 – $199 | Most common; phone or in person |
| Local HUD-approved agency | $125 – $200 | In-person available; varies by region |
| Proprietary reverse mortgage counseling | $229 | For non-HECM jumbo reverse mortgages |
| Fee-waived sessions | $0 | Available if you're below 200% of the federal poverty line — ask the agency |
The fee is collected up front by most agencies. Some agencies allow the fee to be rolled into the closing costs of your reverse mortgage. If your household income is below 200% of the federal poverty line, the fee can often be waived entirely — it's worth asking before you schedule. See Money Management International's counseling FAQ for one national agency's current fee policy.
How long does HECM counseling take?
A typical session runs 60 to 90 minutes. You can complete it by phone, video, or in person — the choice is yours. Phone is the most common because it's the easiest to schedule.
HUD requires you to receive your pre-counseling document set from your lender before the session. That packet includes a loan comparison, a closing cost worksheet, an amortization schedule, and the TALC disclosure. You're also expected to have HUD's "Preparing for Your Counseling Session" (4-page PDF) and the National Council on Aging's "Use Your Home to Stay Home" booklet (26 pages) on hand. HUD requires sessions to be scheduled no more than one week in advance.
How to find a HUD-approved HECM counselor
There are two reliable ways to find an approved counselor:
- HUD's official HECM counselor search. entp.hud.gov/sfohlp/ lets you request a list of FHA-approved counselors by ZIP code.
- National intermediaries that serve all 50 states:
- National Foundation for Credit Counseling (NFCC)
- Money Management International (MMI)
- GreenPath Financial Wellness
- Cambridge Credit Counseling
- ClearPoint Credit Counseling Solutions
Your lender is required to give you a list of at least nine HUD-approved agencies — five local or state agencies plus four national intermediaries — and you choose. HUD's Mortgagee Letter 10-37 prohibits lenders from steering you to any specific counselor. If a loan officer pushes one name, that's a red flag.
What you need to bring to your counseling session
- Photo ID
- The pre-counseling document set your lender provided
- HUD's "Preparing for Your Counseling Session" booklet
- NCOA's "Use Your Home to Stay Home" booklet
- Income documentation (Social Security award letter, pension statements, etc.)
- Recent property tax and homeowners insurance bills
- Questions you've written down ahead of time
- Your non-borrowing spouse, if applicable — they must also be counseled
- A trusted family member or friend (optional — they may attend but cannot speak for you)
What happens after counseling? The certificate
Once you finish, the counselor issues three copies of HUD Form 92902 ("Certificate of HECM Counseling") by mail — one for you, one for your lender, and one for your records. If you want to move quickly, your counselor can fax or email a copy to your lender immediately. You can see the actual form here: HUD Form 92902.
The certificate is valid for 180 days from the issue date. In most states, the certificate just needs to be current at the time of FHA case number assignment. Texas is an exception: the certificate must be unexpired at closing, or you'll need to repeat counseling. If your loan process drags on, watch the expiration date.
Can you waive HECM counseling?
Generally no. There's one narrow exception: refinancing an existing HECM. Under HUD Handbook 7610.1, you can waive counseling on a HECM-to-HECM refinance if the new loan provides a "specific tangible economic benefit" (such as a meaningful rate reduction or higher principal limit), the waiver is requested in writing, and HUD's other refinance requirements are met.
For every new HECM borrower — including non-borrowing spouses and non-borrowing owners on the deed — counseling is always required.
Frequently asked questions
Is HECM counseling required for all reverse mortgages?
Yes for FHA-insured HECMs. Proprietary jumbo reverse mortgages may have their own counseling requirements; check with the lender.
Can I do HECM counseling online or by phone?
Yes. HUD allows phone, video, and in-person counseling. The choice is yours.
Who pays for HECM counseling?
You do, in most cases. The fee ($125–$229) is collected by the counseling agency, not your lender. Fee waivers are available if you're below 200% of the federal poverty line.
What happens if I fail HECM counseling?
You can't "fail" — counseling is educational, not a test. The counselor must confirm you understand the program. If they have concerns, they may recommend additional resources or a follow-up.
Can a family member attend my counseling session?
Yes, with your permission. They cannot speak on your behalf unless they have a documented power of attorney.
How long is the counseling certificate valid?
180 days from the date of issue. In Texas, it must be unexpired at closing.
Does my spouse have to be counseled too?
Yes — every borrower, every non-borrowing spouse, and every non-borrowing owner listed on the deed must complete counseling.
Can I get HECM counseling for free?
Sometimes. If your household income is below 200% of the federal poverty line, many agencies will waive the fee. Ask before scheduling.