Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You remain on title and own the home. The lender places a lien, but you keep ownership as long as you live there.

Question 2

What happens when I move out or pass away?

Accepted Answer

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

Question 3

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

Accepted Answer

Yes, but your existing mortgage must be paid off using the reverse mortgage proceeds at closing.

Question 4

Are reverse mortgage proceeds taxable?

Accepted Answer

Generally no. Loan proceeds are not considered income. Consult a tax advisor for your specific situation.

Question 5

What if my home value drops below what I owe?

Accepted Answer

FHA insurance covers the shortfall. You or your heirs are never liable for more than the home's sale price.

Question 6

How does the Fountain Valley market affect my HECM amount?

Accepted Answer

Higher appraised value increases your eligible draw, up to the FHA lending limit. A local appraisal determines your starting equity.

Reverse Mortgages in Fountain Valley, CA