Reverse Mortgage Process Timeline: Application to Closing
Typical timeline (30-45 days)
| Week | Milestone |
|---|---|
| 1 | Research, talk to counselor, choose lender |
| 1-2 | Counseling session and certificate |
| 2-3 | Application, disclosures, financial assessment docs |
| 3-4 | Appraisal, title work, underwriting |
| 4-6 | Closing, right of rescission (3 business days after signing) |
Right of rescission
For HECM, you have 3 business days after closing to cancel without penalty.
Delays to expect
- Condo FHA approval status
- Title issues or liens
- Repairs required from appraisal
- LESA setup if financial assessment is tight
When this is NOT a good fit
- You cannot reliably pay property taxes, homeowners insurance, and maintenance
- You plan to move within a few years
- You need every dollar of home equity preserved for heirs
- Medicaid or SSI eligibility depends on keeping assets below program limits (consult an elder law attorney)
- You were pressured by a salesperson without time to research alternatives