1. What are the advantages of a reverse mortgage?

• Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership.
• Stay in your home. It allows you to remain in your home and retain home ownership.
• No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.
• Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits.
• Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose.

2. Who can qualify for a reverse mortgage?

Seniors 62 years of age or older qualify. There are no income, health or credit qualifications.

3. I’ve heard that with a reverse mortgage the lender would own my home. Is this true?

It’s absolutely false. The borrower retains title to the property. The reverse mortgage lender is merely extending a loan to the borrower.

4. Can I refinance a reverse mortgage?

Yes. Refinancing can make sense if your home increases in value or interest rates drop.

5. Is it possible for my loan balance to become greater than the value of my home?

No. You can never owe more than what your home is worth. What’s more, since the reverse mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from your income, your other assets, or your estate. In other words, the house stands for the debt.

6. How much money can I get?

The amount you can borrow depends on several factors, including your age, the type of reverse mortgage you select, current interest rates, the location of your home, and the appraised value of your home and FHA's lending limits for your area. In most cases, the older you are, the more valuable your home, and the less you owe on it, the more money you can get.

7. How can I use the money I get from a reverse mortgage?

You can use the money for anything you choose, from daily living expenses, home improvements, healthcare expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.

8. Would a home that is in a "living trust" be eligible for a reverse mortgage?

Yes. In most cases a homeowner who has put his or her home in a living trust can usually take out a reverse mortgage. A review of the trust documents would be made by the reverse mortgage lender to determine if anything in the living trust would be unacceptable.

9.  What is owed when a reverse mortgage loan is repaid?

When the last surviving borrower permanently moves out of the home or dies, the reverse mortgage loan becomes due. The reverse mortgage principal, interest charges, and service fees (such as closing cost fees) are paid from sale of the house or other assets of the estate.


10. What are the tax consequences of a reverse mortgage? What about my Social Security and Medicare benefits?

Because reverse mortgages are considered loan advances and not income, the IRS considers them to be not taxable. Similarly, having a reverse mortgage should not affect your Social Security or Medicare benefits.

An Experienced and licensed Reverse Mortgage Specialist is ready to dicuss your unique siutation and help you decide if a Reverse Mortgage is right for you. Give us a call for a FREE NO OBLIGATION consultation.

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