Question 1

What happens to my home when I die if I have a reverse mortgage?

Accepted Answer

Your heirs can pay off the loan balance and keep the home, or sell it and pocket any remaining equity. If the loan exceeds the home value, FHA insurance covers the difference.

Question 2

Can I lose my Buellton home with a reverse mortgage?

Accepted Answer

Yes, if you fail to pay property taxes, homeowners insurance, or let the property deteriorate. Staying current on these obligations keeps the loan in good standing.

Question 3

How much can I borrow against my Buellton home?

Accepted Answer

Loan amounts depend on your age, home value, and current interest rates. At 62, expect around 50% of home value. At 75, that rises to roughly 60%.

Question 4

Do reverse mortgages have adjustable or fixed rates?

Accepted Answer

Most use adjustable rates tied to indexes like SOFR. Fixed rates exist but only for lump-sum payouts, not lines of credit or monthly payments.

Question 5

Will a reverse mortgage affect my Social Security or Medicare?

Accepted Answer

No. Reverse mortgage proceeds don't count as income for Social Security or Medicare. Medicaid eligibility can be affected if you hold large cash balances from loan proceeds.

Reverse Mortgages in Buellton: Unlock Your Home Equity After 62