Question 1

Can I lose my La Habra home with a reverse mortgage?

Accepted Answer

Yes, if you stop paying taxes, insurance, or move out. Staying current on those obligations keeps the loan in good standing.

Question 2

Does my La Habra home need to be paid off?

Accepted Answer

No. You can have an existing mortgage. The reverse mortgage proceeds must first pay it off, though.

Question 3

How do I receive the money from a reverse mortgage?

Accepted Answer

You choose: lump sum, monthly payments, a line of credit, or a combination. The line of credit option is often the most flexible.

Question 4

What happens when I pass away or move out?

Accepted Answer

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

Question 5

Is reverse mortgage income taxable?

Accepted Answer

Loan proceeds are not considered income by the IRS. Consult a tax advisor for your specific situation.

Question 6

What credit score do I need for a reverse mortgage?

Accepted Answer

There is no minimum credit score for HECMs. Lenders do review credit history to assess financial obligations.

Reverse Mortgages in La Habra, CA