Is HECM borrower counseling required for a HECM purchase loan?

Yes, HUD-approved housing counseling agencies that have been approved to provide reverse mortgage counseling must counsel those who anticipate using the HECM for Purchase option on all topics covered in Mortgagee Letter 09-11 and other HUD requirements and issuances.

HECM Mortgagee Letters are available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02224