FAQs

Reverse Mortgages in today’s marketplace are insured by the US Government (HUD/FHA) and are known as “Home Equity Conversion Mortgage (HECM). The FAQ below address rules and guidelines under the HECM program.

1	Can I get a Reverse Mortgage if there is already a mortgage on my home?
2	What types of homes qualify for a reverse mortgage?
3	What if my home is in a trust?
4	Is my credit score part of the qualification process?
5	Is the condition of my home part of the qualification process?
6	If I know that I want a reverse mortgage, why do I have to receive counseling?
7	How are loan proceeds calculated?
8	What is the difference between the interest rate and the expected interest rate?
9	How can I receive my money?
10	Can I prepay my loan?
11	What is the difference between open-end and closed-end credit?
12	Will a reverse mortgage affect my SSI or Medicaid?
13	Will I have any tax liability for the reverse mortgage proceeds?
14	Can the interest charged on my loan principal be deducted for tax purposes?
15	What up front costs are associated with a reverse mortgage?
16	What it the typical process to obtain a Reverse Mortgage?
17	If there are no payments, what are my obligations?
18	What do you mean by “maintain” the home?
19	Can I have an impound account so that I don’t have to worry about payments for property taxes and insurance?
20	When does the loan become due and payable?
21	What is due when the loan is repaid?
22	Will I ever owe ore than my home is worth?
23	Can the lender take my home if I outlive the loan?
24	Can my heirs still inherit the property?
25	Do I or my heirs have to sell the property to repay the loan?
26	Will the lender own my house?