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FREQUENTLY
ASKED QUESTIONS
 Reverse Mortgages are becoming increasingly popular
for Senior Homeowners in America.
Long before the current economic crisis it was obvious that
Reverse Mortgages would play a major role for Senior Homeowners
reaching retirement age.
What is a Reverse Mortgage?
Allows a homeowner
convert a portion of the value in his or her home into cash. The
value built up over years can be paid back to you. But unlike a traditional home equity loan or second
mortgage, no repayment is required until the borrower(s) no
longer use the home as their principal residence.
How much money can
I get from my home?
Loan Limit: $625,500
HUD Reverse Mortgage Calculator
The amount you can borrow depends on your age, the current
interest rate, and the appraised value of your home.
Can I qualify for a HUD Reverse
Mortgage?
To be eligible for a HUD Reverse Mortgage, you must be a
homeowners aged 62 or older, occupy the home as your primary
residence, pay off any existing liens at the time of
settlement and speak with a HUD-approved housing counselor.
Do I have to pay income
tax on the proceeds?
NO. The proceeds received from a Reverse
Mortgage are loan
advances and not taxable income. For your specific situation, we
recommend that you consult your tax advisor.
Will this income affect my
Social Security or Medicare benefits?
The Answer is NO.
Money from a Reverse Mortgage is not considered income, nor does it
affect Social Security or Medicare.
What types of homes are
eligible?
Your home must
be a single family dwelling or a two-to-four unit property that you own
and occupy. Townhouses, detached homes, units in condominiums and some
manufactured homes are eligible.
Condominiums must be FHA-approved under the Spot Loan program.
Can the lender take my home away if I outlive the
loan?
No! Nor
is the loan due. You do not need to repay the loan as long as you or one
of the borrowers continues to live in the house and keep the taxes and
insurance current. You can never owe more than your home's value.
Guaranteed by the Federal
Government.
Can I still leave my home to my heirs?
When you no longer live in your home as
your primary residence, you or your estate will repay the money you
borrowed, plus interest and other fees. The money left over after you
have repaid the Reverse Mortgage will belong to you or your estate.
None of your other assets will be affected by HUD’s Reverse Mortgage.
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