Please read below as some of these frequently asked questions may shed light on how the reverse mortgage process works
Most frequent questions and answers
Are Reverse Mortgages Costly?
The simple answer is no. The bulk of closing costs and fees can be financed into the reverse mortgage loan. As opposed to selling your home and moving, a reverse mortgage loan may be a more cost effective alternative by allowing the homeowner to acquire a portion of their home equity.
How do I qualify for a reverse mortgage loan?
In order to qualify, you are required to be age 62 or older and be the titleholder to your home. In addition, you must have enough equity in your home and you have to meet financial eligibility outlined by HUD.
When does the loan have to be paid back?
The loan is due when the homeowners have passed on or have moved out of the property for good. Also, given that taxes and insurance are satisfied and the home is preserved according to Federal Housing Administration (FHA) standards.
Does attaining a reverse mortgage mean the bank owns the home?
Why am I not paying monthly mortgage payments?
Monthly mortgage payments are omitted because any current mortgage is paid off at closing using the income from the reverse mortgage loan.
Will Social Security or Medicare be affected?
Entitlement programs like Social Security and Medicare are often unaffected. However, need-based programs like Medicaid can be affected. You should speak with a financial advisor and government agencies for any taxes or government benefits.