Reverse Mortgage FAQs


A reverse mortgage is a government insured FHA/HUD approved loan that allows you to access some of the equity that is tied-up in your home. You will not have mortgage payments, though you will need to maintain the home and pay property taxes and insurance.
When the last borrower leaves the home, the heirs decide what the heirs always decide…will they keep the home or sell it? If they keep the home, they refinance the home into their own names at 95% of the appraised value at that time, or the amount of the loan balance, whichever is less. It they want to sell the home, they receive all the loan proceeds after the mortgage has been satisfied.
The heirs and/or your estate is not responsible for that debt. The heirs can refinance into their names for 95% of the appraised value of the home at that time, or they can simply sell the home. An FHA Reverse Mortgage is a non-recourse loan, no one ever owes more than the home is worth.
With an FHA/HUD insured reverse mortgage, the mortgage insurance kicks in and repays the amount of the reverse mortgage that is higher than the value of the property. Your heirs and your estate are not responsible.
Your heirs get any-and-all additional equity when they sell the home and satisfy the reverse mortgage.
  • You will never have a mortgage payment as long as at least one borrower lives in the home for at least 6 months and one day each year. However, you will need to pay property taxes and insurance and maintain the home.
  •  You will never owe more that the home is worth.
  •  The loan proceeds are not taxable, and will not affect your social security or Medicare benefits.
  • You will have a more comfortable financial situation in retirement.
You may use the loan proceeds in any way you choose.
At least one borrower must be 62 years or older. You must own your own home, and it must be your primary residence. Call us and we will help you with your particular situation.
No, the loan proceeds are not income. However, Medicaid and SSI may possibly be affected. Call us to discuss your situation.
Yes, you may do another reverse mortgage and get additional money out. Call us to see about your options.
You must pay your property taxes, homeowners insurance and maintain your home. You may elect to have a LESA (Life Expectancy Set Aside) and the lender will pay your property taxes and insurance.
No, not necessarily. In most cases there is a remedy for past credit problems. Call us to evaluate your situation.

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