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Reverse Mortgage Counseling Explained

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Understanding Reverse Mortgage Counseling

For many homeowners 62 and older, their home is their biggest asset—but tapping into that value can feel overwhelming. I’ve spoken with seniors who worry about outliving their savings, covering medical costs, or simply wanting more flexibility in retirement. A reverse mortgage can be a powerful financial tool, but only if you fully understand how it works.

That’s why reverse mortgage counseling is required by the U.S. Department of Housing and Urban Development (HUD). It ensures that homeowners fully understand the details before moving forward.

At Money Fit, we provide HUD-approved reverse mortgage counseling, helping homeowners explore their options and make informed choices. Whether you’re looking to increase retirement income, reduce monthly expenses, or eliminate mortgage payments, this article will walk you through everything you need to know before scheduling your counseling session.

Why Reverse Mortgage Counseling Matters

Making financial decisions about your home’s equity is a big step, and understanding all your options is essential. A reverse mortgage can offer financial relief for some homeowners, but it’s not the right choice for everyone. That’s why HUD requires counseling—to ensure you fully understand:

  • How reverse mortgage loans work and their impact on home equity.
  • The long-term financial effects for you and your heirs.
  • Alternative options that may better fit your needs.
  • The risks and benefits before making a final decision.

Before choosing a reverse mortgage, some homeowners explore:

  • Downsizing to a smaller home to reduce expenses
  • Refinancing to a lower-interest mortgage
  • Seeking local grants or financial aid for seniors
  • Home equity loans or lines of credit

Money Fit’s counselors will help you evaluate whether a reverse mortgage is the best option—or if another path makes more sense for your situation.

Take the Next Step Toward Financial Confidence

A reverse mortgage is a major financial decision, and having the right information makes all the difference. Whether you’re looking to eliminate mortgage payments, supplement your retirement income, or explore alternatives, we’re here to help.

At Money Fit, we don’t sell financial products—we empower you with knowledge so you can make informed choices that support your future.

Schedule your required counseling session today and take control of your financial future with confidence.

Book Your Counseling Session Now

Why Choose Money Fit for Reverse Mortgage Counseling?

Gentlemen sitting on couch, on a cell phone, receiving counseling from Money Fit about his reverse mortgage options.

Making decisions about a reverse mortgage is a significant financial step, and having the right guidance is essential. At Money Fit, our HUD-approved counselors provide unbiased, personalized support to ensure you fully understand your options.

When it comes to reverse mortgage counseling, having the right advisor makes all the difference. At Money Fit, we take a unique approach:

  • Expert Guidance – Our experienced counselors stay up-to-date on industry changes, ensuring you receive accurate, reliable information tailored to your situation.
  • Clear, Unbiased Advice – We don’t sell financial products. Our goal is to educate, not persuade, so you can make the best decision for your future.
  • Nationwide Access – No matter where you are in the U.S., our counseling services are available to help you navigate the reverse mortgage process.
  • Comprehensive Education – We go beyond the basics, explaining how a reverse mortgage impacts your finances, home equity, and long-term financial goals.
  • Ongoing Support – Your relationship with us doesn’t end after the session. If you have questions or concerns, we’re here to help you every step of the way.

When you choose Money Fit, you’re not just checking off a requirement—you’re empowering yourself with the knowledge to make the best financial decision for your future.

Real Stories: How Reverse Mortgage Counseling Made a Difference

Understanding a reverse mortgage is about more than numbers—it’s about real people making informed decisions for their future. Here are a few examples of how Money Fit’s counseling has helped homeowners navigate their options with confidence.

Gerry’s Story: Finding Financial Stability
At 71, Gerry, who is legally blind, was struggling to manage his limited income. Through counseling, he discovered that a reverse mortgage could eliminate his monthly mortgage payments, reducing financial stress and improving his quality of life. Additionally, he secured a line of credit for future home repairs, ensuring long-term stability.

Robert’s Story: Choosing an Alternative Path
Robert, a 66-year-old veteran and residential painter, needed $10,000 in home repairs but was hesitant to take on debt. After exploring his options with a Money Fit counselor, he decided against a reverse mortgage and instead secured additional painting contracts and a small personal loan—a choice that aligned better with his values.

Marilyn’s Story: Increasing Monthly Income
Marilyn, 70, lived on less than 50% of the area median income and struggled to keep up with expenses. After working with Money Fit, she opted for a reverse mortgage, boosting her income by 33% while eliminating her mortgage payment. Discussing this decision with her children helped ensure everyone was on the same page.

Sally’s Story: Eliminating Debt and Regaining Control
At 83, Sally relied on credit cards for emergency expenses, leading to growing debt. Through Money Fit, she learned how a reverse mortgage could pay off her credit cards and free up 20% of her income each month—giving her breathing room and financial relief in her later years.

Evelyn’s Story: Overcoming a Financial Setback
After her husband’s passing, 85-year-old Evelyn struggled with reduced monthly income and growing expenses. A reverse mortgage helped eliminate her house payment, increasing her discretionary income from $200 to over $1,500 per month—allowing her to continue her community involvement without financial stress.

Each of these stories highlights the power of making informed decisions. A reverse mortgage is not for everyone, but with the right information, you can confidently choose what’s best for your future.

What to Expect from Your Reverse Mortgage Counseling Session

At Money Fit, we understand that considering a reverse mortgage is a major financial decision. That’s why our HUD-approved counseling sessions are designed to provide clear, unbiased guidance at every step. Here’s what you can expect from the process:

Step 1: Scheduling Your Session

Your journey begins with scheduling an appointment with one of our certified counselors. Once booked, you’ll receive a pre-counseling packet by email or mail, which includes:

  • An overview of reverse mortgages and how they work
  • Key financial considerations
  • Sample schedules of potential payments and balances
  • What to expect during the session

HUD requires that clients review these materials for at least three days before attending their session to ensure they are well-prepared.

Step 2: Your Counseling Session

During your one-on-one session, our counselor will guide you through every aspect of a reverse mortgage, including:

  • How a reverse mortgage impacts home equity, heirs, and finances
  • The long-term financial obligations (property taxes, insurance, and maintenance)
  • Alternative options that may better fit your financial needs
  • What happens if you decide to move, sell, or pass away

This is an interactive conversation, not a lecture. You are encouraged to ask questions and discuss any concerns you have about your financial situation. Our goal is to ensure you feel fully informed and confident before making any decisions.

Step 3: Completing the Process

At the end of your session, you will receive your HUD-required counseling certificate, which confirms you have completed this essential step. If needed, we can also send the certificate directly to your lender.

HUD-Required Reverse Mortgage Counseling: What You Need to Know

Before proceeding with a reverse mortgage, HUD requires all borrowers to complete a counseling session with an approved agency. This session is designed to:

  • Ensure you understand loan terms, repayment obligations, and home equity impact
  • Help you explore alternative financial options
  • Provide an official counseling certificate, which your lender will need to move forward

But our support doesn’t stop there. If you have follow-up questions or need additional guidance, our counselors are here to help—even after your session is complete.

Take the Next Step Toward Financial Confidence

A reverse mortgage isn’t the right choice for everyone, but the right information can help you make a confident decision. HUD-approved counseling is a required step in the process—but more importantly, it’s an opportunity to explore whether a reverse mortgage aligns with your long-term financial goals.

At Money Fit, our experienced housing counselors provide unbiased guidance—no sales pitches, just facts. Whether you’re exploring alternative options, have questions about how a reverse mortgage impacts your home equity, or are ready to move forward, we’re here to help.

Get clear answers about how a reverse mortgage works
Understand the impact on your home, heirs, and finances
Make a fully informed decision before committing

Learn more about Money Fit HUD-approved counseling programs today.

About the Author

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Todd Christensen

As the education manager for Money Fit, author, speaker, and financial educator, Todd Christensen develops financial education programs and provides credit and debt counseling for individuals and groups around the country. In 2014, Todd published his first 5-star-rated book, Everyday Money for Everyday People based on stories and ideas he had heard in nearly 1,000 workshops he facilitated on budgeting, credit, debt reduction, saving, and identity protection.
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6213 N. Cloverdale Rd, Suite 130, Boise, ID 83713
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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)