Question 1

Can I lose my home with a reverse mortgage?

Accepted Answer

Yes, if you stop paying taxes, insurance, or let the property fall into disrepair. Stay current on those obligations and you keep the home.

Question 2

What happens when I pass away?

Accepted Answer

Your heirs can sell the home to repay the loan or refinance it. They keep any remaining equity after the balance is paid.

Question 3

Does my credit score matter for approval?

Accepted Answer

Lenders do a financial assessment, but the bar is lower than conventional loans. Income and asset verification still happen.

Question 4

How much can I borrow in Butte County?

Accepted Answer

Your proceeds depend on age, home value, and current rates. Older borrowers with more equity generally qualify for more.

Question 5

Is HUD counseling really required?

Accepted Answer

Yes, it's federal law for HECM loans. You'll work with an approved counselor before any paperwork is finalized.

Question 6

Can my spouse stay if they're under 62?

Accepted Answer

Yes, under non-borrowing spouse rules — but they must be listed before closing. Adding them later is not allowed.

Reverse Mortgages in Chico, CA — Turn Equity Into Income