How to Apply for a Reverse Mortgage: Step by Step

Step 1: Free consultation

Start with a conversation about your goals, your home and your timeline. Kenny will estimate how much you may be able to access and explain which payout options fit what you're trying to accomplish.

Step 2: HUD-approved counseling

For a HECM, you'll complete a session with an independent HUD-approved counselor before your application moves forward. You'll receive a counseling certificate when you're done.

Step 3: Application and documents

Common documents include:

• Photo ID and Social Security number
• Your most recent mortgage statement (if you have a mortgage)
• Homeowners insurance declarations page and property tax information
• Income documentation such as Social Security or pension statements
• Your counseling certificate

Step 4: Appraisal

An FHA-approved appraiser determines your home's value and confirms it meets FHA property standards. If repairs are needed, some can often be completed after closing.

Step 5: Underwriting and financial assessment

The lender reviews your credit history and income to confirm you can keep up with taxes, insurance and maintenance. In some cases, part of the loan is set aside to cover these costs.

Step 6: Closing and funding

You'll sign your documents, and after a three-day right of rescission for refinances, your existing mortgage is paid off and your funds become available as a lump sum, monthly payments, line of credit or a combination.

Ready to start?

Kenny will guide you through each step and keep you — and your family, if you'd like — updated along the way.

Reverse mortgage borrowers must live in the home as their primary residence, continue to pay property taxes, homeowners insurance and HOA dues, and maintain the home. The loan becomes due when the last borrower no longer lives in the home. These materials are not from, nor approved by, HUD, FHA or any government agency. This article is general information, not financial, tax or legal advice.