How much income do I have to have and how good does my credit have to be to qualify?  There are no income or credit requirements to qualify.  It's as simple as that.

Does the bank own my house?  No, you do.  You keep title to your home and the equity remains yours.  The bank cannot "take" your house.  After death the house can be passed to your children or whomever you would like to have it.  If you, for example, leave it to a member of the family and that person wants to keep the house and live in it, then the house would have to be refinanced and the Reverse Mortgage would be paid off.  If the person who inherits the house wants to sell it and use the remaining equity then the house is sold and the loan is paid off.  The money left over after the loan is paid goes to the person who inherited the home. 

Can I lose my house after I get a Reverse Mortgage?  The FHA mortgage insurance that covers a Reverse Mortgage loan insures that even if your loan balance exceeds the value of your home you are still protected.  You are, however, responsible for paying your property insurance premiums and your property taxes. You can lose your home if you do not pay your property taxes, just as you can with a conventional loan. 

How will a Reverse Mortgage effect the equity in my home that I want to leave to my heirs?  The interest charged on your Reverse Mortgage will slowly erode the equity you have in your home.  That erosion will be offset, should the home appreciate in value.  There are no guarantees that your heirs will be left with any equity.  Don't let anyone promise you otherwise, your equity is subject to real estate market conditions.  No one knows for sure what those conditions will bring in the future. 

Will a Reverse Mortgage affect my social security or medicare benefits?  A Reverse Mortgage is a loan and not considered income.  Since it is not income, it does not effect your eligibility.  Some programs, though, consider cash in the bank as an asset.  So if you have bunch of cash in the bank that could prove to be an issue.  You should contact a medicare advisor regarding your benefits. 

What choices do I have in receiving the money I get from my Reverse Mortgage?  You can have your proceeds in a lump sum, or you can have them distributed over the rest of your life, or you can have them paid out to you for a set amount of years that you decide, or you can have a combination of those choices.  In addition, you can choose to have a credit line of the amount available to you.  Give us a call at (800) 698-6014 to discuss the options!

What costs and fees are involved with in a Reverse Mortgage?  We hold true to our promise to write your Reverse Mortgage for less than our competition.  Let us quote you with our discounted origination... you will be glad you did!

Christopher M Plante, California Dept of Real Estate Broker License 00902661