By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 30, 2026. Hyde Funding is a mortgage lender headquartered at 8996 Miramar Rd., Suite 250, San Diego, lending since 2015. For reverse mortgages I shop six lenders: Finance of America, Longbridge Financial, Fairway, Guild Mortgage, Mutual of Omaha and South River Mortgage.
Short answer: HECM closing costs come in three parts. The 2% FHA upfront mortgage insurance and the origination fee (capped at $6,000) follow HUD formulas. Third-party fees for the appraisal, title, escrow and recording vary. Most borrowers pay them from the loan rather than out of pocket. This page covers costs at closing. For costs over the life of the loan, see reverse mortgage costs.
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Hyde Funding · 8996 Miramar Rd., Suite 250, San Diego · NMLS #391380 · Lending since 2015
| Line item | How it’s set | Notes |
|---|---|---|
| Upfront mortgage insurance premium (MIP) | 2% of the maximum claim amount | Maximum claim amount = lesser of appraised value, sale price or $1,249,125 (2026). Paid to FHA. |
| Origination fee | Greater of $2,500 or 2% of the first $200,000 + 1% above that | $6,000 maximum. Lenders can charge less or give credits. |
| Appraisal | Appraiser | FHA appraisal, usually paid upfront. Larger or rural homes can cost more. |
| Counseling | HUD-approved agency | Many agencies charge a modest fee, and some waive it based on income. |
| Title insurance and settlement/escrow | Title and escrow companies | Varies by county and loan amount |
| Recording fees and transfer taxes | County | Recording the deed of trust. Varies by county. |
| Credit report, flood certification, document fees | Third parties | Usually small |
| Repairs or set-asides (if any) | Appraisal and financial assessment | Not a fee. Proceeds held back for required repairs or future taxes and insurance. |
Round numbers that show how the HUD formulas work. Not a quote. Third-party fees vary, so they’re left as a range to be filled in by real quotes.
| Appraised value | $650,000 |
| Upfront MIP: 2% x $650,000 | $13,000 |
| Origination formula: 2% x $200,000 + 1% x $450,000 | $8,500, capped at $6,000 |
| Third-party costs | Vary by provider and county |
| HUD-formula costs subtotal | $19,000 before third-party costs and any lender credit |
On a $1,600,000 home, the MIP is still based on the 2026 limit, so it’s $24,982.50, and the origination fee is still capped at $6,000. A jumbo reverse mortgage has no FHA MIP but sets its own fees, so compare the totals.
With a HECM for Purchase, the same MIP and origination formulas apply, using the lesser of the sale price or the appraised value. You also pay normal buyer costs like escrow, title, recording and any agreed seller credits, and you bring the required down payment from savings or the sale of your old home. Seller concessions are limited under FHA rules, so we plan the contract terms up front. San Diego buyers can see HECM for Purchase in San Diego.
Reverse mortgages are exempt from TRID, so you won’t get a Loan Estimate or Closing Disclosure. Instead you’ll receive a Good Faith Estimate early on, a Truth in Lending disclosure with the Total Annual Loan Cost (TALC) table, and a HUD-1 settlement statement at closing. In California, a lender can’t accept your final application or charge fees (other than the counseling fee) until seven days after counseling. On a refinance of your primary home you generally have three business days after signing to cancel.
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Hyde Funding · 8996 Miramar Rd., Suite 250, San Diego · NMLS #391380 · Lending since 2015
They depend on your home's value and location. The two largest items follow HUD formulas: upfront mortgage insurance of 2% of the maximum claim amount (at most $24,982.50 in 2026) and an origination fee capped at $6,000. Appraisal, title, escrow and recording fees vary. We show every line on your Good Faith Estimate before you commit.
Yes. Most borrowers finance closing costs from the loan proceeds, so little or no cash is due at closing. Financing them reduces the money available to you and adds to the balance that accrues interest.
The same HUD formulas apply: 2% upfront MIP on the lesser of the price, appraised value or the 2026 limit, plus an origination fee capped at $6,000. You also have normal purchase costs like escrow, title and recording, and you bring the required down payment.
On a refinance of your primary home you generally have a three-business-day right of rescission after signing. A HECM for Purchase does not have a rescission period.
Reverse mortgages are exempt from the TRID rules that created the Loan Estimate and Closing Disclosure. HECM borrowers get a Good Faith Estimate, a Truth in Lending disclosure with the Total Annual Loan Cost (TALC), and a HUD-1 settlement statement.
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. Lender names are for information only and are not endorsements; programs and availability vary by lender and change over time. Examples are illustrative only and are not quotes. This is general information, not a commitment to lend. Consult a financial or tax advisor.