Reverse Mortgage FAQs

Does the reverse mortgage lender take my house or am I selling my house?
No. Borrowers maintain title to their house. They still own and live in the home. You do not sell the house to the bank when you get a reverse mortgage. It is simply a loan that doesn’t require monthly payments.

What if I need to move out of my house for medical reasons?
Reverse mortgage borrowers are allowed to temporarily move out of their house for up to 12 consecutive months for medical reasons. After this period of time the borrower must return to the home and live in it as their primary residence.

Is my credit check or income verified?
No. Unlike “forward” mortgages, there is no credit check or income verification.

Will the bank get my house when I pass away?
No. Your heirs will inherit your house when the last person on title passes away. They will have up to 12 months (6 months plus two 3 month extensions) to determine what they would like to do with the property. They could pay off the mortgage balance with cash or through a refinance. If they don’t want to keep the house, they could sell and keep the equity that is left over after paying off the loan.

Do I still qualify if my children are on title?
Yes. You will still qualify for a reverse mortgage as long as your children are over 62 years old.

Can my heirs or I owe more than the value of the home?
No. FHA insured reverse mortgages are non-recourse loans. Borrowers can not owe more than the value of the home. FHA mortgage insurance covers the lender in the unlikely event that the mortgage balance exceeds the property value.

Can I still get a reverse mortgage if my spouse is permanently in a nursing home?
Yes. You are still eligible for a reverse mortgage as long as one borrower occupies the house as their primary residence.

Do I still qualify if the property is in a trust?
Yes. You would qualify as long as the property is not in an irrevocable trust.

Can I sell the sell the house or pay off my reverse mortgage?
Yes. You can sell the house at any time. There is no prepayment penalty. Simply pay off the mortgage balance and the remaining equity is yours.

Can I make payments to keep pay off my loan balance or keep it the same?
Yes. You can pay off as little or as much of the loan balance at any point in time.

I have a loan on my house, do I still qualify?
Yes. Proceeds from the reverse mortgage will be used to pay off any mortgages or liens on title.

Can I use a reverse mortgage to purchase a home?
Yes. The reverse mortgage for purchase allows people over 62 to purchase a primary residence with a reverse mortgage. Simply provide a down payment and the reverse mortgage covers the rest. Take advantage of this incredible buying opportunity and never have to make a mortgage payment again. Or downsize to a smaller house and pocket the difference (see example #3)

Do I still own my home?
Yes. Reverse mortgage borrowers retain title to their home.

Do my heirs have to pay off my loan out of their own pockets?
No. Your heirs can refinance the loan balance with a traditional loan with not out of pocket costs or sell the home and keep the equity. Your heirs would never have to come up with “out of pocket” money to pay the loan balance. If the balance exceeded the value of the home, the FHA mortgage insurance would “kick in” and pay the difference.

Do I still have to pay the property taxes and insurance?
Yes. Homeowners are required to pay the property taxes and maintain homeowners insurance.

Can I refinance to receive more money if home values go up?
Yes. People can often refinance their reverse mortgages to receive more money if home values or lending limits increase.

Am I restricted in how I use my reverse mortgage proceeds?
No. You can use your reverse mortgage proceeds for anything you want. Common uses include: In-home or long term care, medical expenses, vacations, new car, home improvements, assisting family members, paying bills, etc.

How do I get more information and who will help me get a reverse mortgage?
Our team of reverse mortgage experts can be reached at 866-707-4664. We are here to assist you through the process and provide confidential advice. We can assist you over the phone or set up a free in-home consultation.