Question 1

Can I lose my San Luis Obispo home with a reverse mortgage?

Accepted Answer

You retain ownership and cannot be forced out as long as you live in the home, pay property taxes and insurance, and maintain the property. The loan becomes due when you permanently move or pass away.

Question 2

What happens if I owe more than my home is worth?

Accepted Answer

HECM reverse mortgages are non-recourse loans, meaning you or your heirs never owe more than the home's value. FHA insurance covers any shortage, protecting you and your family from owing additional money.

Question 3

How much can I borrow with a reverse mortgage in San Luis Obispo?

Accepted Answer

Borrowing limits depend on your age, home value, and current rates. As of 2024, HECM loans cap at $1,149,825, while proprietary jumbo reverse mortgages serve higher-value properties common in coastal California.

Question 4

Will a reverse mortgage affect my Social Security or Medicare?

Accepted Answer

Reverse mortgage proceeds generally do not affect Social Security or Medicare benefits. However, they may impact need-based programs like Medicaid or SSI if you retain funds beyond the month received.

Question 5

Can my spouse stay in the home if something happens to me?

Accepted Answer

Non-borrowing spouses can remain in the home even if the borrowing spouse passes away, provided they meet specific requirements. Both spouses should be on the loan if both are 62 or older for maximum protection.

Reverse Mortgages in San Luis Obispo: Access Your Home Equity Without Monthly Payments