Similar to all other types of home loans, with a reverse mortgage you retain title and control of your home. The reverse mortgage is only a lien. You can remain in your home for as long as you wish as long as you continue to pay your
As a protection to consumers, the U.S. Dept. of HUD has recently required borrowers to provide some limited income and credit information to insure that they are able to continue paying taxes, insurance, and other property expenses over the long term.
Not necessarily. If your credit history is not satisfactory, it doesn’t necessarily mean your loan will be denied, however you may be required to have a mandatory set-aside for the lender to pay your taxes and insurance. This set-aside would reduce the amount of funds available to
No. When you leave the home or sell it, the reverse mortgage balance is paid in full and the remaining equity either goes to you or your heirs.
No. Reverse mortgages have no effect on your Social Security or Medicare benefits, however if you are receiving Medicaid benefits, you may want to consult an elder law professional before proceeding.
Yes. As long as the living trust meets certain HUD requirement (nearly all of them do), your home qualifies for a reverse mortgage.
Yes. You are responsible for paying your home insurance, property taxes, and any association dues (if a condo) in a timely manner. You are also required to maintain the reasonable condition of your home.
Yes. Even though there are no required payments on a reverse mortgage, you can make full or partial payment any time you wish with no penalty.
The U.S. Dept. of HUD insures reverse mortgages and for that they charge a fee at closing. For this fee, they insure that you will always get your funds for the life of the loan, and that you will never have to pay back more than the
No. A reverse mortgage is a “non-recourse” loan which means that you never have to pay back more than the value of your home at the time the home is sold. This is true regardless of your loan balance when you or your heirs sell it. Because
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