Reverse Mortgage Questions & Answers

Q: How much money can I get from my home?

A: The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. We would be glad to offer you a free analysis, simply click here.

Q: How do I receive my money?

A: You have three options: Lump Sum, Monthly Payments (your choice of loan advances for a specific period, or for as long as you live in your home), Line of Credit (unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted). Any combination you would like of the above three choices

Q: How long does the process take?

A: The time from application to closing depends on how long it takes to get the borrower documentation, outside reports, and the underwriting approval. The file needs to be 100% complete with all documentation needed and have any underwriting conditions cleared. Generally, this takes 30 - 60 days. However, expedited approval can be arranged if an emergency situation exists.

Q: Do I have to pay income tax on the proceeds?

A: 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.

Q: Will this income affect my Social Security or Medicare benefits?

A: NO. Money from a reverse mortgage is not considered income, nor does it affect Social Security or Medicare. Homeowners on SSI or Medicaid should observe pertinent rules.

Q: How can I look at my specific situation?

A: You can evaluate the different reverse mortgages with a no-cost, no-obligation computerized comparison of the available plans. Just fill out the free analysis form and we will contact you shortly. We also can be reached immediately at 1-800-743-9233.

Q: Can the lender take my home away if I outlive the loan?

A: No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers (ex. spouse) continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.

Q: Will I still have an estate that I can leave to my heirs?

A: When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs.

Q: What are the "Out of Pocket Costs"?

A: Virtually all costs, fees, and interest are financed within the reverse mortgage. This means you can get access to this cash without any out of pocket costs ever.