Understanding Smart Money Housing Reverse Mortgage Counseling In 2023


Are you a homeowner aged 62 years or older looking for ways to supplement your retirement income? If so, a smart money housing reverse mortgage counseling may be an option worth considering. This type of mortgage allows you to borrow money against the equity in your home, and the loan doesn’t have to be repaid until you move out, sell your home, or pass away. However, before you take out a reverse mortgage, it’s crucial to understand the process and requirements involved. That’s where smart money housing reverse mortgage counseling comes in.

What is Smart Money Housing Reverse Mortgage Counseling?

Smart money housing reverse mortgage counseling is a service provided by HUD-approved agencies to help seniors make informed decisions about reverse mortgages. The counseling is mandatory for anyone applying for a Home Equity Conversion Mortgage (HECM) reverse mortgage, which is the most common type of reverse mortgage. During the counseling, a counselor will discuss the benefits and drawbacks of a reverse mortgage, explain how the loan works, and evaluate your financial situation to determine if a reverse mortgage is suitable for your needs.

The Benefits of Smart Money Housing Reverse Mortgage Counseling

There are numerous benefits to receiving smart money housing reverse mortgage counseling, including:

1. Understanding the Loan Terms and Requirements

A reverse mortgage is a complex loan with specific terms and requirements. During counseling, a counselor will explain these terms and requirements, such as the interest rates, fees, and repayment options. Understanding these terms is crucial to making an informed decision about whether a reverse mortgage is right for you.

2. Identifying Other Financial Options

A counselor will evaluate your financial situation and help you identify other financial options that may be more suitable for your needs. For example, if you have significant equity in your home, but don’t need the money right away, a home equity loan or line of credit may be a better option.

3. Planning for the Future

A reverse mortgage can have an impact on your future financial situation, such as your ability to leave your home to your heirs. A counselor will help you understand these impacts and plan for the future accordingly.

4. Avoiding Scams and Fraud

Unfortunately, scams and fraud are prevalent in the reverse mortgage industry. A counselor will help you identify and avoid these scams, protecting you from financial exploitation.

The Process of Smart Money Housing Reverse Mortgage Counseling

The process of smart money housing reverse mortgage counseling typically involves the following steps:

1. Contacting a HUD-Approved Agency

To receive smart money housing reverse mortgage counseling, you’ll need to contact a HUD-approved agency. You can find a list of approved agencies on the HUD website. The agency will schedule a counseling session for you.

2. Attending the Counseling Session

During the counseling session, you’ll meet with a counselor who will explain the reverse mortgage process and evaluate your financial situation. The session can take place in person, over the phone, or online.

3. Receiving a Counseling Certificate

After completing the counseling session, you’ll receive a counseling certificate, which you’ll need to provide to your lender when you apply for a reverse mortgage.


If you’re considering a smart money housing reverse mortgage, counseling is a crucial step in the process. The counseling will help you understand the loan terms and requirements, identify other financial options, plan for the future, and avoid scams and fraud. Contact a HUD-approved agency today to schedule your counseling session and make an informed decision about your financial future.