Question 1

Do I lose ownership of my home with a reverse mortgage?

Accepted Answer

No. You keep title to the home. The lender places a lien, just like a regular mortgage.

Question 2

What happens when I pass away or move out?

Accepted Answer

The loan becomes due. Heirs can repay it or sell the home. FHA insurance protects against owing more than the home's value.

Question 3

Can my spouse stay if I'm not on the loan?

Accepted Answer

Possibly. Non-borrowing spouse protections exist — but the rules are strict. Get this reviewed before closing.

Question 4

Is the money I receive taxable?

Accepted Answer

Generally no. Reverse mortgage proceeds are loan advances, not income. Consult a tax advisor to confirm your situation.

Question 5

Does Pacific Grove property type affect eligibility?

Accepted Answer

Single-family homes and FHA-approved condos qualify. Condos need FHA project approval — some Pacific Grove buildings may not qualify.

Question 6

What is HUD counseling and is it required?

Accepted Answer

It's a mandatory session with an approved housing counselor. HUD requires it before any HECM application can proceed.

Reverse Mortgages in Pacific Grove, CA