Question 1

Do I still own my home?

Accepted Answer

Yes. Your name remains on the title. The lender records a lien against the property the same way any mortgage lender does.

Question 2

What happens to my children?

Accepted Answer

When the last borrower leaves the home permanently, heirs may sell the home and keep any equity above the loan balance, refinance to keep the home, or walk away. Because the loan is non-recourse, they never owe more than the home is worth.

Question 3

Do I have to make monthly payments?

Accepted Answer

No monthly mortgage payment is required. You must keep paying property taxes, homeowners insurance, any HOA dues, and maintain the home. You may make voluntary payments toward the balance at any time without penalty.

Question 4

What will it cost me?

Accepted Answer

Expect an FHA upfront mortgage insurance premium, an annual insurance premium added to the balance, a HUD-capped origination fee, standard third-party closing costs, and interest on funds drawn. Most costs can be financed into the loan.

Question 5

How old do I have to be?

Accepted Answer

At least one borrower on title must be 62 or older. A younger spouse can usually be protected as an eligible non-borrowing spouse, which lets them remain in the home if the borrowing spouse passes away first.

Question 6

How much money can I get?

Accepted Answer

It depends on the age of the youngest borrower, your home's appraised value up to the FHA lending limit, and current interest rates. Older borrowers and lower rates yield more. Any existing mortgage is paid off first from the proceeds.

Question 7

Is the money taxable?

Accepted Answer

Loan proceeds are generally not taxable income because they are borrowed funds, not earnings. Interest may be deductible when it is actually paid, typically at payoff. Confirm your specific situation with a tax professional.

Question 8

Will it affect my Social Security or Medicare?

Accepted Answer

No. Those programs are not needs-based. Medicaid and SSI can be affected if proceeds remain in your account past the end of a month, so coordinate with a benefits specialist if you rely on them.

Question 9

Does my credit score matter?

Accepted Answer

There is no minimum credit score in the traditional sense. Lenders perform a financial assessment reviewing your history of paying property charges and your residual income. Past credit problems don't automatically disqualify you.

Question 10

What is HUD counseling and do I have to do it?

Accepted Answer

Yes, it's required. You'll speak with an independent, HUD-approved counselor who works for you, not for us. Sessions run about an hour by phone or in person, and there is a modest fee that can sometimes be waived or financed.

Question 11

How long does the whole process take?

Accepted Answer

Typically 30 to 45 days from application to closing, including counseling and the appraisal.

Question 12

Can I get a reverse mortgage if I still owe on my house?

Accepted Answer

Yes, and it's very common. The reverse mortgage pays off your existing loan at closing. You need enough equity for the payoff to work, and anything left over is available to you.

Question 13

Can I use one to buy a different home?

Accepted Answer

Yes — a HECM for Purchase. You bring a down payment of roughly half the purchase price depending on your age, and the reverse mortgage covers the rest with no required monthly mortgage payment.

Question 14

What if I need to move to assisted living?

Accepted Answer

The loan becomes due when the home is no longer your principal residence for more than 12 consecutive months. At that point the home is typically sold and the loan repaid from the proceeds, with any remaining equity going to you or your estate.

Question 15

Can I change my mind after signing?

Accepted Answer

Federal law gives you three business days after closing to rescind a reverse mortgage on your primary residence, in writing, with no penalty.

Question 16

Which states do you work in?

Accepted Answer

We are licensed in Utah, Idaho, Colorado, and Iowa.

Reverse mortgage questions, answered

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