Question 1

Can I lose my Moraga home with a reverse mortgage?

Accepted Answer

You retain ownership and can stay in your home as long as you maintain it, pay property taxes and insurance, and use it as your primary residence. The loan becomes due if you move out permanently or sell.

Question 2

How much can I borrow with a Moraga reverse mortgage?

Accepted Answer

The amount depends on your age, home value, and current interest rates. Older borrowers with higher-value homes typically qualify for larger loan amounts. A lender can provide specific estimates.

Question 3

Will my heirs inherit debt from my reverse mortgage?

Accepted Answer

Your heirs can pay off the loan balance and keep the home, sell the home to repay the loan, or turn the property over to the lender. They never owe more than the home's value.

Question 4

What happens if I need to move to assisted living?

Accepted Answer

The reverse mortgage becomes due if you move out of your Moraga home for more than 12 consecutive months. Plan ahead for this possibility when considering a reverse mortgage.

Question 5

Are reverse mortgage proceeds taxable income in California?

Accepted Answer

Reverse mortgage proceeds are not considered taxable income. However, they may affect eligibility for some need-based government programs. Consult a tax advisor about your specific situation.

Reverse Mortgages in Moraga: Access Your Home Equity After 62