Question 1

Can I lose my home with a reverse mortgage?

Accepted Answer

Yes — if you stop paying taxes or insurance, or stop living there. Staying current on those obligations keeps the loan in good standing.

Question 2

What happens when I pass away?

Accepted Answer

Your heirs can sell the home to repay the loan or refinance it. Any remaining equity after repayment belongs to your estate.

Question 3

Does my credit score affect approval?

Accepted Answer

Lenders do a financial assessment, but there's no minimum credit score like a traditional loan. Income and tax payment history matter more.

Question 4

How do I receive the money?

Accepted Answer

You can take a lump sum, monthly payments, a line of credit, or a combination. The right structure depends on your income needs.

Question 5

Is my spouse protected if they're under 62?

Accepted Answer

Non-borrowing spouses under 62 have specific protections — they can stay in the home after the borrowing spouse passes. Ask your broker about eligibility rules.

Question 6

Are reverse mortgage proceeds taxable?

Accepted Answer

Generally no — the IRS treats them as loan advances, not income. Always confirm with a tax advisor for your specific situation.

Reverse Mortgages in Avenal, CA — Turn Equity Into Income