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Reverse Mortages Questions & Answers:

1. What is Reverse Mortgage?
   
   A reverse mortgage is a special type of home loan that lets the homeowner use the equity of his or her home and covert it into cash. No repayment is required until the borrower no longer uses the home as their principal residence. Th emost popular reverse mortgage on the market today is the FHA HECM(Home Equity Coversion Mortgage) which is federally insured by the goverment.
   
   
2. Are there any age restrictions?
   
   All parties on title must be al least 62 years old. The older you are the more money you get.
   
   
3. Are the payments taxable?
   
   No, The payments are not subject to income tax because you are just borrowing on your home.
   
   
4. Do I still pay property taxes and insurance?
   
   Yes, you are on title, you must pay the taxes, insurance and upkeep as you do now! This is just a loan against the property.
   
   
   
5. Does the lender take my home when I die?
   
   Absolutely NOT. When the last surviving spouse passes away, the loan becomes due. The heirs or estate can refinance or sell the house, pay off the existing mortgage(as you would have with any mortgage on the property) and keep whatever is left.
   
   
6. Will my children or estate owe any more on my home?
   
   No. The house stands for the debt. No debt will ever be passed along to the heirs.
   
   
7. When is the loan due?
   
   When none of the borrowers are remaining in the home, the loan is due. The family or estate can refinance or sell the house and pay off the debgt as with any other loan on the property.
   
   
8. Are only single family homes eligible?
   
   No, Single family homes, condominiums, townhomes, PUDs and 1-4 unit owner occupied homes are eligible.
   
   
9. what happens if my spouse passes away?
   
   As long as one of your remains in your home, no repayment is required.