Question 1

Can I lose my home with a reverse mortgage?

Accepted Answer

Yes, if you fail to pay property taxes, insurance, or let the home fall into disrepair. Stay current on those obligations and you keep the home.

Question 2

Does my Calistoga home qualify if it's high-value?

Accepted Answer

FHA HECM limits may cap what you can borrow. A jumbo reverse mortgage product could access more of your equity.

Question 3

What happens when I move out or pass away?

Accepted Answer

The loan becomes due. Heirs can sell the home or refinance to pay it off. They keep any remaining equity after the balance is settled.

Question 4

Is reverse mortgage income taxable?

Accepted Answer

Reverse mortgage proceeds are loan advances, not income. They are generally not taxable — but consult your tax advisor.

Question 5

What does the required HUD counseling cover?

Accepted Answer

A HUD-approved counselor walks you through costs, risks, and alternatives. It takes about 90 minutes and must happen before you apply.

Question 6

Can my spouse stay if I pass away first?

Accepted Answer

Eligible non-borrowing spouses have deferral protections under HECM rules. They can remain in the home after the borrower's death.

Reverse Mortgages in Calistoga, CA