Question 1

Will the bank own my home?

Accepted Answer

No. You retain ownership and the title to your home for the life of the loan. The lender places a lien on the property, similar to a traditional mortgage, but you remain the owner as long as you live in the home and meet the loan requirements.

Question 2

What happens when I move out or pass away?

Accepted Answer

The loan becomes due when the last borrower permanently leaves the home. Heirs then have three choices: Repay the loan and keep the home. Sell the home and keep any remaining equity. Walk away if the loan balance exceeds the home value — the FHA insurance covers the shortfall.

Question 3

Will proceeds affect my Social Security or Medicare?

Accepted Answer

No. Reverse mortgage proceeds are loan advances, not income, so they do not affect Social Security or Medicare benefits.

Question 4

What are the upfront costs?

Accepted Answer

HECM reverse mortgages include these upfront costs: FHA mortgage insurance premium (2%). Origination fees (capped by HUD). Appraisal fee. Closing costs. Most can be financed into the loan so you pay nothing out of pocket.

Question 5

Can I use a reverse mortgage if I still have a regular mortgage?

Accepted Answer

Yes. In fact, paying off an existing mortgage is one of the most common uses. Your reverse mortgage proceeds first pay off any existing mortgage balance, and the remaining amount is yours to use freely.

Question 6

What happens if I live longer than expected?

Accepted Answer

You can stay in your home for life as long as you continue to meet the loan requirements — paying property taxes, maintaining homeowners insurance, and keeping the property in good condition. There is no term limit.

Question 7

Do you offer reverse mortgages in Spanish?

Accepted Answer

Yes. Miguel A. Vazquez (NMLS #401212) is a fully bilingual broker who can explain and handle your entire reverse mortgage in Spanish ('hipoteca inversa'). The HUD counseling required for FHA-insured HECM loans is also available in Spanish. Visit our Spanish site or call/text +1 562-881-9811.