FREQUENTLY ASKED QUESTIONS
Answers to Frequently Asked Questions about Reverse Mortgages.
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YES. You can use the proceeds for whatever you want.
NO. The title on a reverse mortgage is no different than any other mortgage——only the homeowners are on the title.
NO. The money you receive from a reverse mortgage is tax-free. Please consult a tax advisor for more specific information about your tax situation.
NO. There are no payments required as long as you live in your home.
The amount of home equity required depends upon the age of the youngest borrower. The older you are the less equity you need to qualify.
NO. It will not affect your Social Security or Medicare Benefits.
NO. Reverse mortgages are “non-recourse” loans, which means that the borrower can never owe more than the value of the home regardless of the loan balance.
Recent FHA changes have made Reverse Mortgages safer for the surviving spouse. Generally, the loan does not have to be repaid until the last surviving homeowner passes away or leaves the home. At that time, the estate may repay the balance of the reverse mortgage within a specified period, or sell the home to pay off the balance.