You find yourself seated across from a lovely couple in their early 70s. They love their home, but they worry about money. The husband leans forward and asks for reverse mortgage advice, “What do you think about reverse mortgages? Should we get one?”

Your stomach drops a little. You want to help. You know a little something about reverse mortgages. But you also know you’re not a financial advisor or a reverse mortgage lender, and this feels like dangerous territory.

What advise, if any, can a REALTOR give to a potential reverse mortgage borrower when they ask for it?

A REALTOR can provide general factual information about reverse mortgages and explain how they might impact real estate transactions. However, REALTORS cannot recommend whether someone should obtain a reverse mortgage or evaluate if it suits their financial situation, as this constitutes unlicensed financial advice.

If you’ve been in real estate for more than a minute, you’ve probably faced a very similar situation. Senior clients trust you. They see you as their real estate expert. And naturally, they assume you can guide them through any decision involving their home.

The problem? Reverse mortgages sit right at the intersection of real estate and financial planning. One wrong word, and you could be giving financial advice without a license. But saying nothing feels like you’re abandoning a client who needs help.

The good news is that you can be incredibly helpful without crossing that line. You just need to know what to say, what not to say, and where to point people for the guidance they really need.

Why REALTORS Get Asked About Reverse Mortgages

Seniors make up one of the fastest-growing segments in real estate. According to the National Association of REALTORS, buyers and sellers over 65 make up a significant portion of the market. These clients often have complex needs that go beyond just buying or selling.

When seniors think about their housing options, they’re thinking about money. Can they afford to stay in their home? Should they downsize? What about their retirement savings? A reverse mortgage feels like it fits naturally into these conversations because it directly affects their home equity and their ability to purchase a home.

You’re already their trusted advisor for everything related to their property. You help them understand market conditions. You’ve guided them through inspections and negotiations. So when they start wondering about tapping into their home equity, they call you first.

Here’s the tricky part. Discussing whether someone should get a reverse mortgage isn’t real estate advice. It’s financial advice. And that’s not what your license covers.

The Legal and Ethical Boundaries

Let’s be crystal clear about what counts as financial advice. If you’re recommending that someone take a specific financial action, evaluating whether a financial product is right for their situation, or projecting financial outcomes based on their personal circumstances, you’re giving financial advice. This is perfectly fine if you’re a licensed financial planner, a CPA, or even a mortgage broker or loan officer.

However, your real estate license allows you to advise clients on property values, market conditions, transaction processes, and similar real estate matters. It does not allow you to tell someone whether they should get a reverse mortgage, whether they can afford to stay in their home based on their finances, or what will happen to their retirement savings. Of course, you already know that, but your trusting clients may not.

The risks of crossing this line are serious. You could face:

• Liability if your “advice” leads to financial harm
• Complaints to your state real estate commission
• License suspension or revocation
• Lawsuits from clients or their families

Even if you mean well, and even if you’re right, giving unlicensed financial advice puts your career at risk.

But here’s what you CAN do. You can educate yourself about how reverse mortgages work in general terms. You can explain factual and share educational information. You can discuss how a reverse mortgage might affect a real estate transaction. And you can connect clients with qualified professionals who are licensed to give the advice they need.

What You CAN Say About Reverse Mortgages

What all those warnings, you have more room to be helpful than you might think. The key is sticking to general information and facts, not personal recommendations.

Start with the basics. You can explain what a reverse mortgage is in simple terms. “A reverse mortgage is a loan available to homeowners 62 and older that lets them convert part of their home equity into cash. Instead of making monthly payments to a lender, the lender makes payments to them. The loan gets repaid when they sell the home, move out permanently, or pass away.”

Share factual requirements. You can mention age requirements, that they must live in the home as their primary residence, and that they need to keep up with property taxes, insurance, and maintenance. These are facts, not advice.

Discuss transaction impacts. This is squarely in your wheelhouse. “If you’re thinking about selling in the next few years, we’d need to factor in paying off the reverse mortgage from your proceeds. Let me connect you with a lender who can tell you exactly what your current balance would be.”

Safe Scripts Instead of Reverse Mortgage Advice

• “I’m not qualified to tell you whether a reverse mortgage is right for your financial situation, but I can share what I know about how they work generally.”
• “That’s a great question for a HUD-approved reverse mortgage counselor. They can look at your specific situation and help you understand your options.”
• “From a real estate perspective, here’s how having a reverse mortgage might affect selling your home down the road…”
• “I’ve worked with several clients who have reverse mortgages. What I’ve learned is that everyone’s situation is different. Let me give you some resources to explore.”

The magic words are “generally,” “typically,” and “from what I understand.” These phrases signal that you’re sharing information, not giving advice.

What You Should NOT Say When Asked for Reverse Mortgage Advice

Some phrases should never leave your mouth, no matter how confident you feel or how much you want to help.

Never make recommendations. Don’t say, “You should definitely get a reverse mortgage” or “I don’t think a reverse mortgage is a good idea for you.” Both cross the line into financial advice.

Don’t evaluate their finances. Avoid statements like, “Based on your retirement income, you could afford to stay here with a reverse mortgage” or “You’d be better off selling and downsizing.” You don’t have the full picture of their financial life, and you’re not licensed to analyze it.

Don’t calculate numbers. Resist the urge to project how much they might receive, what their loan balance might be in five years, or how much equity they’d have left. Leave the math to licensed lenders.

Don’t make promises. Never say things like, “You’ll never have to worry about money again” or “This will solve your financial problems.” You simply don’t know that.

Here are scripts to avoid:

• “If I were in your shoes, I would…”
• “You can’t afford to stay here without a reverse mortgage.”
• “This is the perfect solution for your situation.”
• “Let me run some numbers for you.”
• “You’re throwing money away by not getting one.”

Even if you’ve seen a hundred reverse mortgages work out beautifully, you can’t predict what will happen for this specific client. Their health could change. Their family situation might be different. Their long-term plans matter. All of these factors require professional financial guidance.

The Magic Phrase: “Let Me Connect You With…”

This is your superpower. Building a strong referral network doesn’t just protect you legally. It actually serves your clients better than anything you could say yourself.

A qualified professional can dive deep into your client’s finances, tax situation, estate planning goals, and long-term needs. They can run real numbers. They can explain complex scenarios. They can provide the personalized advice your client deserves.

Build relationships with:

• HUD-approved reverse mortgage counselors (this is actually required before getting a reverse mortgage. Most counselors work by phone or virtually, so they do not need to be in your same town… in fact, with only 200 certified counselors nationwide, you’re unlikely to find one close by)
• HUD-approved reverse mortgage lenders (HUD’s tool is a bit unwieldy, so if you want to connect with me, I’ll get you a list of 5-10 HUD-approved lenders in your area)
• Elder law attorneys
• Financial planners who specialize in retirement
• Estate planning attorneys

Make warm introductions, not cold handoffs. “I know a HUD-approved counselor who’s excellent at explaining all the options for seniors. Can I send you her contact information? I’d be happy to let her know you might reach out.”

Then follow up appropriately. You can check in to see if they connected with your referral. You can ask if they have any real estate questions that came up during their conversations. But don’t ask, “So what did they tell you to do?” That puts pressure on them and could pull you back into the advice-giving role.

Your referral network becomes one of your most valuable assets. Clients remember when you connected them with someone who truly helped them. Even if they don’t end up working with you on a transaction right away, they’ll recommend you to others because you showed you cared enough to find them the right resources.

Red Flags of Reverse Mortgage Advice and When to Speak Up

Sometimes you’ll encounter situations that feel wrong, even if you can’t give financial advice. You still have an ethical duty to raise concerns.

Watch for potential scams or predatory practices:

• Someone pressuring your client to get a loan they say is “like” a reverse mortgage (such as a home equity investment)
• Contractors who suggest a reverse mortgage to pay for unnecessary repairs
• Anyone offering to help in exchange for being added to the deed
• Promises that sound too good to be true

You can express concern without giving advice. “I’m not comfortable with how quickly this person is pushing you to make a decision. Before moving forward, I’d really encourage you to speak with a HUD-approved counselor and maybe an elder law attorney.”

If you suspect financial abuse or exploitation, you may have reporting obligations depending on your state. Connect your client with local elder services, adult protective services, or an elder law attorney who can help.

Trust your gut. If something feels off, speak up. You’re not diagnosing the problem or telling them what to do financially. You’re raising a concern and pointing them toward professionals who can help them evaluate the situation safely.

Staying in Your Lane Builds Trust

Here’s what might surprise you. Clients don’t actually want you to be everything. They want you to be excellent at what you do and honest about what you don’t do.

When you say, “That’s outside my area of expertise, but let me connect you with someone who specializes in this,” you’re showing wisdom, not weakness. You’re demonstrating that you care more about their wellbeing than about appearing knowledgeable.

This approach builds deeper trust than trying to answer every question yourself. Clients see that you have boundaries. They see that you’re thoughtful about staying in your lane. And they appreciate that you’ve built a network of professionals who can help them with all aspects of their housing decisions.

Plus, those referral relationships work both ways. When you send business to a great reverse mortgage counselor or elder law attorney, they remember you. They refer their clients back to you when real estate needs come up. Everyone wins.

Start building your referral network today. Research HUD-approved counselors in your area. Have coffee with a few reverse mortgage lenders and see who you trust. Connect with elder law attorneys. Create a simple resource sheet you can share with clients.

The next time a client asks about reverse mortgages, you’ll be ready. You’ll know exactly what to say, where to draw the line, and who to call. And your clients will get the expert guidance they deserve while you stay safely in your lane as their trusted real estate professional.