Question 1

Do I have to pay taxes on reverse mortgage proceeds?

Accepted Answer

Reverse mortgage payouts are loan advances, not income. The IRS does not treat them as taxable income.

Question 2

What happens when I pass away or move out?

Accepted Answer

The loan becomes due. Heirs can sell the home, pay it off, or refinance to keep it.

Question 3

Can I get a reverse mortgage on an Aliso Viejo condo?

Accepted Answer

Yes, but the condo project must be FHA-approved for a HECM. Proprietary reverse mortgages have looser condo rules.

Question 4

Can I lose my home with a reverse mortgage?

Accepted Answer

You can if you fail to pay property taxes or insurance. Staying current on those is required to keep the loan in good standing.

Question 5

How much can I borrow with a reverse mortgage?

Accepted Answer

It depends on your age, home value, and current interest rates. Older borrowers with more equity generally qualify for more. Rates vary by borrower profile and market conditions.

Question 6

Is HUD counseling mandatory in California?

Accepted Answer

Yes. All HECM borrowers must complete HUD-approved counseling before closing. It applies statewide, including Orange County.

Reverse Mortgages in Aliso Viejo, CA