HECM Counseling Texas

Before any Texas homeowner can receive a reverse mortgage, the law requires one non-negotiable step: a session with an independent, HUD-approved housing counselor. This isn’t red tape — it’s one of the most valuable hours you’ll spend in the entire process. Here’s exactly what to expect and how to navigate it.

Why HECM Counseling Is Required in Texas

The federal government introduced mandatory HECM counseling as a consumer protection measure. A reverse mortgage is a complex financial instrument that affects your home, your estate, and your heirs. The counseling requirement ensures that no one proceeds without a full, unbiased understanding of what they’re agreeing to.

In Texas, this requirement is enforced at both the federal and state level. No lender — including me — can accept your application or begin processing without your counseling certificate in hand. The counselor is completely independent; they have no financial relationship with your lender and no incentive to push you toward any particular product.

How to Find a HUD-Approved Counselor in Texas

What Happens During the Counseling Session

A typical session runs 60 to 90 minutes and can be conducted by phone or in person. The counselor will walk through:

• How a reverse mortgage works — loan mechanics, interest accrual, and repayment triggers
• All costs associated with the loan (origination fees, mortgage insurance premiums, closing costs)
• The three ways to receive funds: lump sum, line of credit, or monthly payments
• Your ongoing obligations: property taxes, homeowner’s insurance, and maintenance
• What happens to the loan when you pass away, sell the home, or move out
• Implications for your heirs and estate
• Alternatives to a reverse mortgage (home equity loans, downsizing, government assistance programs)

Questions to Ask Your Counselor

This session is your opportunity to ask anything without sales pressure. Consider asking:

• How would my loan balance grow over 10 and 20 years at current rates?
• What happens to my non-borrowing spouse if I pass away first?
• What are the tax implications of receiving reverse mortgage proceeds?
• Would a HECM line of credit be more appropriate than a lump sum for my situation?
• What alternatives should I seriously consider given my financial picture?

What You’ll Receive After Counseling

After completing the session, your counselor will issue a HECM counseling certificate. This document is required by your lender before the loan process can begin. Keep copies — you’ll submit one to your lender and retain one for your records.

How Much Does HECM Counseling Cost?

Most HUD-approved agencies charge between $125 and $200 for a HECM counseling session. Federal regulations prohibit agencies from refusing service based on an inability to pay, so reduced-fee or no-cost sessions are available for qualifying borrowers.

Some lenders will credit the counseling fee toward your closing costs. Ask your loan officer about this before scheduling — it’s a legitimate practice and worth a quick conversation.

The Step-by-Step Process After Counseling

1. Schedule and complete counseling — Call HUD at 800-569-4287 or visit the CFPB locator. Sessions can be by phone or in person. Allow 60–90 minutes.
2. Receive your counseling certificate — You’ll receive a signed certificate confirming completion. This is your ticket to begin the formal application process.
3. Submit application to your lender — Your loan officer submits the application and orders the home appraisal. The 180-day clock on your certificate starts now.
4. Home appraisal — An FHA-approved appraiser determines your home’s current market value, which sets the baseline for your loan amount.
5. Underwriting and approval — The lender reviews all documentation and issues a loan approval, subject to final conditions.
6. Closing in Texas — Texas requires reverse mortgage closings at a title company or attorney’s office. You’ll have a 3-day right of rescission after closing before funds are disbursed.

Frequently Asked Questions

How do I find a HUD-approved HECM counselor in Texas?

Call HUD at 800-569-4287, use the CFPB’s locator at consumerfinance.gov/find-a-housing-counselor, or contact Money Management International directly. Always verify the agency appears on HUD’s official approved list before scheduling.

How much does HECM counseling cost in Texas?

Sessions typically cost $125–$200. Agencies cannot deny service based on inability to pay, and some lenders may credit the fee toward closing costs. Ask your loan officer before scheduling.

How long does the HECM counseling session take?

Expect 60 to 90 minutes. The counselor reviews your financial situation, explains reverse mortgage mechanics and costs, covers alternatives, and answers all your questions. Phone sessions are available if you prefer not to travel.

Can HECM counseling be done over the phone in Texas?

Yes. HUD permits telephone counseling, making it convenient for borrowers across all Texas markets. Have your financial documents available during the call.

How long is the HECM counseling certificate valid in Texas?

180 days. Your loan must close within that window — if it doesn’t, you’ll need a new session. The Preliminary Title Report runs only 90 days under Texas law, so coordinate both timelines carefully with your loan officer.

This content is for informational purposes only and does not constitute financial, legal, or tax advice. Reverse mortgage products are subject to change. All borrowers should consult with a HUD-approved housing counselor and their own financial and legal advisors before proceeding. Wayne Wallace is a licensed Mortgage Loan Originator (NMLS #745186). Homewood Mortgage LLC, NMLS #294974. Equal Housing Lender.