Question 1

Can I lose my home with a reverse mortgage?

Accepted Answer

Not from the loan itself. You stay in your home as long as you live there and keep taxes, insurance, and HOA dues current.

Question 2

What happens when I pass away?

Accepted Answer

Your heirs can sell the home to repay the loan or refinance it to keep it. They are never personally liable for the balance.

Question 3

Does my credit score affect approval?

Accepted Answer

Credit score is less critical here than for conventional loans. Lenders focus more on equity, age, and your ability to cover ongoing costs.

Question 4

Is HUD counseling required?

Accepted Answer

Yes, it's mandatory before you can close a HECM. A HUD-approved counselor explains your options and costs — it protects you.

Question 5

How do I receive the money?

Accepted Answer

You can take it as a lump sum, monthly payments, a credit line, or a combination. Your needs drive which structure works best.

Question 6

Do RSM's HOA rules affect my reverse mortgage?

Accepted Answer

Yes. You must keep HOA dues current. Unpaid dues can put you in default on the loan, even if you're making no mortgage payments.

Reverse Mortgages in Rancho Santa Margarita, CA