Question 1

Can I get a reverse mortgage if I still owe on my current mortgage?

Accepted Answer

Yes, but the reverse mortgage proceeds must first pay off your existing loan. The remaining equity determines your available funds after payoff and closing costs.

Question 2

What happens if I need to move to assisted living?

Accepted Answer

The loan becomes due if you're absent from the home for 12 consecutive months. You or your heirs must repay the loan balance or sell the property to settle the debt.

Question 3

Do my heirs inherit debt if the loan exceeds home value?

Accepted Answer

No, reverse mortgages are non-recourse loans. Heirs can walk away or repay only the home's appraised value, whichever is less than the loan balance.

Question 4

How much can I borrow with a reverse mortgage in East Palo Alto?

Accepted Answer

HECM limits cap at $1,149,825 as of 2026. Your age, home value, and current rates determine the exact amount available through the principal limit calculation.

Question 5

Are reverse mortgage proceeds considered taxable income?

Accepted Answer

No, the IRS treats reverse mortgage funds as loan advances, not income. Consult a tax advisor about how the loan affects Social Security or Medicaid eligibility.

Reverse Mortgages in East Palo Alto: Tap Equity Without Monthly Payments