Question 1

Do I lose ownership of my home with a reverse mortgage?

Accepted Answer

No. You remain on title. The lender places a lien, but you own the home as long as you live there and meet loan obligations.

Question 2

What happens when I move out or pass away?

Accepted Answer

The loan becomes due. Heirs can sell the home, repay the loan, or refinance. They keep any remaining equity after the loan is paid.

Question 3

Can I get a reverse mortgage on an SF condo?

Accepted Answer

Yes, but the condo must be FHA-approved for a HECM. Some SF buildings don't qualify — jumbo reverse products have more flexibility.

Question 4

Is reverse mortgage income taxable?

Accepted Answer

No. Proceeds are loan advances, not income. They generally don't affect Social Security, though they may affect Medi-Cal eligibility.

Question 5

What credit score do I need for a reverse mortgage?

Accepted Answer

HECMs don't have a hard credit score minimum. Lenders do a financial assessment to check tax and insurance payment history.

Question 6

What is mandatory HUD counseling?

Accepted Answer

It's a required session with a HUD-approved counselor before you apply. It covers costs, risks, and alternatives — usually done by phone.

Reverse Mortgages in San Francisco: Turn Equity Into Income