Make an informed decision before you apply.
If you are considering a reverse mortgage, HUD-approved counseling is required. Our counselors will walk you through how it works, what you’re responsible for, and what questions to ask so you can make a clear decision.
This service is for homeowners age 62+ who are exploring an FHA reverse mortgage (also called a Home Equity Conversion Mortgage or HECM).
Who is eligible?
- Those age 62 or older
- Own your home (or have a low mortgage balance)
- Live in the home as your primary residence
- Want to understand whether a reverse mortgage supports your goals
What you’ll get from counseling
- A clear explanation of reverse mortgages and how they work
- A review of your options for receiving funds (lump sum, monthly, line of credit, or a mix)
- A breakdown of costs and fees and how the balance can grow over time
- A review of your responsibilities like property taxes, insurance, and home upkeep
- Space to ask questions and talk through concerns without pressure
FAQs
A reverse mortgage lets eligible homeowners convert part of their home equity into cash. With an FHA reverse mortgage (HECM), there are no monthly mortgage payments required, but the borrower must keep up with taxes, insurance, and home maintenance.
HECM stands for Home Equity Conversion Mortgage. It is the FHA-insured type of reverse mortgage.
Yes. HUD-approved counseling is required before you can apply for an FHA reverse mortgage.
In general, borrowers must be 62 or older, own the home outright (or have a low mortgage balance), and live in the home as their primary residence. Eligible homes often include single-family homes, certain multi-unit homes (1 to 4 units), and FHA-approved condos.
Depending on the loan type and your situation, funds may be available as a lump sum, monthly payments, a line of credit, or a combination.
You keep the title to your home as long as you meet the loan requirements, including living in the home and staying current on taxes and insurance.
Repayment is usually due when the borrower sells the home, moves out, or passes away. It can also become due if required obligations like property taxes or insurance are not kept current.
People often use funds for home repairs, medical bills, living expenses, or other needs. Counseling helps you understand what is realistic and what to watch out for.
HECM proceeds are generally considered loan proceeds, not income. Many people refer to it as tax-free cash, but you should confirm your personal tax situation with a tax professional.
Timing can vary, but most sessions take about an hour. We’ll confirm details when you schedule.
We provide HECM counseling in-person at our Ghent location, over the phone, or through Zoom.
At The Up Center, we charge a $150 “upfront” fee to clients who receive Reverse Mortgage Counseling. The fee is due at the time of counseling. You may request “hardship” determination be made by the counselor who may request to see documentation of income and checking and savings statements. The counselor may wave the “upfront” fee if circumstances reveal a hardship exists. Regardless, the fee will be paid by your closing agent directly to us, if closing documentation indicates there are “funds available”.
