Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You keep title and ownership. The lender places a lien on the property, just like a regular mortgage.

Question 2

What happens if I outlive the loan?

Accepted Answer

The loan doesn't come due as long as you live in the home. You can stay as long as you meet the tax and insurance requirements.

Question 3

Can my heirs keep the home after I pass?

Accepted Answer

Yes. They can repay the loan balance and keep the property. Any equity above the payoff amount belongs to them.

Question 4

Is a reverse mortgage taxable income?

Accepted Answer

No. Reverse mortgage proceeds are loan advances, not 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 on HECMs. You or your heirs won't owe more than the home sells for.

Question 6

Can I get a reverse mortgage on a condo in Laguna Hills?

Accepted Answer

Condos are eligible if FHA-approved. Not all condo complexes qualify, so the project approval matters.

Reverse Mortgages in Laguna Hills, CA