Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. Title stays in your name. The lender places a lien, just like a traditional mortgage.

Question 2

What happens when I pass away or move out?

Accepted Answer

The loan becomes due. Your heirs can sell the home, repay the balance, or refinance into a conventional loan.

Question 3

Can my spouse stay if I'm the only borrower?

Accepted Answer

A non-borrowing spouse may qualify for deferral protections. This depends on when the loan was originated — confirm this with your lender before closing.

Question 4

Is a reverse mortgage taxable income?

Accepted Answer

Generally no — loan proceeds aren't taxed as income. But consult your CPA since it may affect benefit eligibility.

Question 5

What are my obligations after closing?

Accepted Answer

You must pay property taxes, homeowner's insurance, and maintain the home. Failing these can trigger loan default.

Question 6

Are Carmel's high home values an advantage here?

Accepted Answer

Yes. Higher appraised value means more available equity. HECM loan limits cap at the FHA maximum, but Carmel values often exceed average borrower scenarios.

Reverse Mortgages in Carmel By The Sea