Question 1

Do I have to sell my home to get a reverse mortgage?

Accepted Answer

No. You stay in the home as long as it's your primary residence. The loan only comes due when you move out, sell, or pass away.

Question 2

What happens to my home when I die?

Accepted Answer

Your heirs can sell the home to repay the loan or refinance it. If the home sells for more than the balance, heirs keep the difference.

Question 3

Can I get a reverse mortgage if I still have a balance on my current loan?

Accepted Answer

Yes, but the reverse mortgage must first pay off the existing balance. You receive access to the remaining equity after that payoff.

Question 4

What counts as failing the financial assessment?

Accepted Answer

Serious delinquencies or inability to show you can cover taxes and insurance are red flags. Lenders may require a set-aside from your proceeds to cover future costs.

Question 5

Is reverse mortgage income taxable?

Accepted Answer

Loan proceeds are generally not considered taxable income. Consult a tax advisor — your specific situation may differ.

Question 6

How is the loan amount determined?

Accepted Answer

It depends on your age, the appraised home value, and current interest rates. Rates vary by borrower profile and market conditions.

Reverse Mortgages in Ukiah, CA — Turn Equity Into Income