Reverse Mortgage Counseling Cost: What the HUD Session Costs and Who Qualifies for a Waiver

A HUD-approved reverse mortgage counseling session typically costs $125, with a market range of roughly $100 to $200, and the fee can be waived entirely for borrowers below 200% of the federal poverty level. The fee goes to the counseling agency, never to the lender, and the agency must disclose it before the session begins (24 CFR §214). A borrower can pay it at the time of counseling, finance it into the loan at closing, or, if income-eligible, pay nothing. The session itself is mandatory before any HECM application (24 CFR §206.41), but the cost is small relative to the loan and the waiver removes it for the borrowers most likely to need a reverse mortgage. A reverse mortgage is a loan, not a government benefit, and this counseling fee is one of its smallest line items.

Last reviewed 2026-06-01

This guide covers only the cost of the counseling session: what it runs, why the fee exists, when it is waived, and the three ways to pay it. The session's content and how to find a counselor are covered in the reverse mortgage counseling guide; the full closing-cost picture is in the reverse mortgage closing costs guide.

How much does reverse mortgage counseling cost?

The typical fee is $125. The full market range runs about $100 to $200, with HUD permitting each approved agency to set its own fee within HUD guidance. The fee covers the 60-to-90-minute session, the counselor's review of the borrower's budget and benefits, any reasonable follow-up calls, and the HECM Counseling Certificate the borrower needs to apply. A second session, if one is needed, may carry a smaller follow-up fee.

The fee is fixed regardless of the loan size or home value. A borrower with a $250,000 home pays the same counseling fee as one with a $900,000 home, because the cost reflects the counselor's time, not the size of the transaction. That makes it a relatively larger share of a small loan and a negligible share of a large one.

Why is there a counseling fee at all?

The counseling requirement is a federal consumer protection: an independent, HUD-regulated counselor walks the borrower through the loan before any lender salesperson does. HUD-approved Housing Counseling Agencies are nonprofits or public agencies that must cover the cost of delivering certified counseling, and the borrower fee helps fund that work alongside HUD grants. HUD prohibits the agency from accepting lender payments for referrals, which is precisely why the borrower, not the lender, bears the fee. If lenders paid for counseling directly, the independence the requirement is meant to guarantee would erode.

When is the counseling fee waived?

HUD requires agencies to provide counseling regardless of ability to pay. In practice this means the fee is waived for borrowers whose household income is at or below 200% of the federal poverty level. Many agencies operate a sliding scale below that threshold rather than a hard cutoff, and some waive the fee more broadly when grant funding allows. The borrower asks about the waiver at the time of scheduling; agencies are required to inform borrowers of the fee and any available waiver before the session.

The waiver matters because it removes the cost for the borrowers most likely to be weighing a reverse mortgage out of financial need. A borrower who cannot comfortably absorb $125 is, by definition, in the income band the waiver is designed to cover. No borrower is turned away from required counseling for inability to pay.

What are the ways to pay for counseling?

There are three permitted ways the fee is handled, and the choice affects whether it can later be reimbursed:

• Paid at the time of counseling. The borrower pays the agency directly when the session is scheduled or completed. If paid this way, the fee cannot be reimbursed by the lender later, and it does not appear on the closing disclosure.
• Financed at closing. The fee is added to the loan and paid out of proceeds at closing, where it appears as a line item on the closing disclosure. This keeps the borrower's upfront out-of-pocket cost at zero but adds the fee to the day-one balance, where it accrues interest like any other financed cost.
• Waived. For income-eligible borrowers, the fee is zero and there is nothing to pay or finance.

A borrower who is confident the loan will close often finances the fee for convenience; a borrower who wants to keep the option of shopping lenders without a sunk cost on the closing disclosure may pay directly. Either way the fee is the same amount.

How does the counseling fee fit the total cost picture?

At $125, counseling is the smallest of the named HECM costs. The two largest are federal and far bigger: the 2% upfront FHA mortgage insurance premium and the origination fee, which HUD caps by formula at $6,000 (24 CFR §206.31). Against those, the counseling fee is a rounding figure. It is worth understanding not because it is expensive but because it is mandatory and non-negotiable, the one cost a borrower cannot avoid by choosing a different lender. The full breakdown of every cost, with the rule behind each, is in the reverse mortgage closing costs guide.

To see how the counseling fee and the larger costs net out against a specific home value, run the figure in the reverse mortgage calculator.

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