What is a Good Faith Estimate?

A Good Faith Estimate, or GFE, is the form a lender has to give you when you apply for a reverse mortgage. It lists basic information about the terms of the loan offer and the estimated costs, so you can see the real cost before you commit. For most other kinds of mortgages you get a Loan Estimate instead, so a GFE in your paperwork usually means a reverse mortgage or an older loan.

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Updated

Where you’ll see the word

  • A reverse mortgage application

    Due from the lender within three business days of receiving your application, or the information needed to complete one, unless an exception applies.

  • An older loan file

    A mortgage you applied for before the combined Loan Estimate and Closing Disclosure took effect used the GFE.

  • A home equity line application

    For a covered home equity plan, the Truth in Lending disclosures you get at application count as the GFE under Regulation X.

The form and its relative

  • GFE The short form, as the CFPB writes it. CFPB
  • Loan Estimate Not the same form; the questions below explain which loans get which. CFPB

What a Good Faith Estimate means for you

You can't be charged much before you see it. Under Regulation X, the lender may charge a fee limited to the cost of a credit report, and may not charge additional fees until you've received the GFE and indicated you intend to proceed with that loan. If the lender denies the application, or you withdraw it, before the three business days are up, no GFE is required.

A broker doesn't change the deadline. If a mortgage broker takes your application, either the broker or the lender must provide the GFE, and the lender is responsible for ascertaining that it was provided.

Its job is comparison. The CFPB says the GFE helps you understand the terms and the real cost of the loan and make an informed decision about choosing a reverse mortgage. The CFPB also says you should receive a HUD-1 Settlement Statement at closing.

Questions about the Good Faith Estimate

What's the difference between a Good Faith Estimate and a Loan Estimate?

The Loan Estimate replaced the GFE for most mortgages. Congress directed the CFPB to combine the federal mortgage disclosure forms, and the rule creating the Loan Estimate and Closing Disclosure took effect October 3, 2015. Regulation X now says its GFE sections don't apply to loans covered by Regulation Z's integrated disclosures, which is why the GFE survives mainly for reverse mortgages.

Does state law change the Good Faith Estimate?

The form is federal. Regulation X says state laws inconsistent with RESPA are preempted to the extent of the inconsistency, while other state laws on settlement practices still apply.

Free help with your mortgage

Housing counselors approved by the U.S. Department of Housing and Urban Development work at nonprofit agencies. The Consumer Financial Protection Bureau describes free foreclosure-avoidance counseling, including help with mortgage-company conversations and available options Source CFPB.

  • HUD-approved housing counselors

    Nationwide800-569-4287hud.gov

    Our help directory lists 1,010 agencies approved for foreclosure counseling, by state.

  • Legal aid

    Every statelsc.gov

    Nonprofit law offices give free civil legal help to people with low incomes. Our help directory lists the 120 offices the Legal Services Corporation funds.

Related terms

Sources and method

This page uses none of our own data. The form, its deadline and the fee limits come from the Consumer Financial Protection Bureau's answer page and Regulation X, opened on Oct 22, 2026.

We write with assistance from AI tools. Figures come from the data and sources named on this page.