Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes, you keep title. The lender places a lien on the property, same as any mortgage.

Question 2

What happens when I pass away or move out?

Accepted Answer

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

Question 3

Can I get a reverse mortgage if I still have a regular mortgage?

Accepted Answer

Yes, but the existing mortgage must be paid off at closing. Many borrowers use reverse mortgage proceeds to do exactly that.

Question 4

Is the cash I receive taxable income?

Accepted Answer

Generally no — it's loan proceeds, not income. Talk to a CPA about your specific situation before closing.

Question 5

Does Monterey County home value affect how much I can borrow?

Accepted Answer

Yes. Higher home values mean more available equity. HECM loan limits are set federally, so a jumbo reverse may apply for higher-value Salinas properties.

Question 6

What is HUD counseling and is it really required?

Accepted Answer

It's a mandatory session with an approved housing counselor. No counseling certificate means no HECM loan — period.

Reverse Mortgages in Salinas, CA — Turn Equity Into Income