Question 1

Can I get a reverse mortgage on a $6M Atherton home?

Accepted Answer

Yes, through jumbo reverse programs that lend up to $4M or more. FHA HECM loans cap at $1.2M, so high-value properties require private jumbo lenders.

Question 2

What happens if my home value exceeds the loan balance when I pass?

Accepted Answer

Your heirs inherit the equity. They can pay off the reverse mortgage and keep the home, or sell it and pocket the difference after repaying the loan.

Question 3

Do I lose my home with a reverse mortgage?

Accepted Answer

No. You retain title and ownership. The loan becomes due only when you permanently move out, sell, or pass away.

Question 4

How much can I borrow on a reverse mortgage in Atherton?

Accepted Answer

It depends on age, home value, and interest rates. Older borrowers on higher-value homes can access more equity—often 50-60% of appraised value on jumbo programs.

Question 5

Are reverse mortgage proceeds taxable income?

Accepted Answer

No. The IRS treats reverse mortgage disbursements as loan advances, not income. Consult a tax advisor for your specific situation.

Reverse Mortgages in Atherton: Unlock High-Value Home Equity After 62