Frequently Asked Questions
Below are some of our most frequently asked questions about reverse mortgages. If you have questions that are not answered here, please get in contact with us so we can provide you with answers.
Getting a reverse mortgage is a big decision! We are dedicated to thoroughly informing you about the pros and cons of getting a reverse mortgage. You will also receive required HUD-approved counseling to further inform you about your decision.
If you have already paid a significant amount of your home mortgage, you can still qualify for a reverse mortgage. The money from the reverse mortgage will be used to pay off the rest of your existing mortgage.
Heirs have several options when the loan comes due. If they would like to keep the home, they must pay 95% of the property’s appraised worth. Heirs can also sell the home at 95% of its appraised value to pay off the loan. If the appraised value of the home is worth more than is owed by the borrower, the remaining balance must be paid off by either the home’s sale or by the heirs if they wish to keep the home. Extra proceeds are kept by the borrower’s beneficiaries. Additionally, because reverse mortgages are non-recourse loans, the heirs are never responsible for paying anything beyond the value of the property.