Question 1

Does the bank own my home with a reverse mortgage?

Accepted Answer

No. You keep the title. The lender places a lien on the property, just like a regular mortgage.

Question 2

What happens when I move out or pass away?

Accepted Answer

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

Question 3

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

Accepted Answer

Yes — but you must pay off the existing mortgage at closing. Reverse mortgage proceeds often cover that payoff.

Question 4

Is the money I receive taxable income?

Accepted Answer

Generally no. Reverse mortgage proceeds are loan advances, not income. Consult a tax advisor for your situation.

Question 5

How does the required counseling work in Sacramento County?

Accepted Answer

You complete a session with a HUD-approved counselor before applying. It can be done by phone and takes about 90 minutes.

Question 6

What if my home value drops below the loan balance?

Accepted Answer

HECM loans are non-recourse. You or your heirs never owe more than the home's sale value at the time of repayment.

Reverse Mortgages in Elk Grove, CA