Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You keep the title. The lender places a lien, but you own the home as long as you meet the loan terms.

Question 2

What happens if my home value drops?

Accepted Answer

FHA insurance on HECMs protects you. You'll never owe more than the home is worth at sale — that's the non-recourse guarantee.

Question 3

Can my spouse stay if I pass away first?

Accepted Answer

Eligible non-borrowing spouses can stay in the home. They must meet HUD's requirements and be listed at origination.

Question 4

How do I receive the funds?

Accepted Answer

You choose: lump sum, monthly payments, a credit line, or a combination. Each option fits a different financial need.

Question 5

Is reverse mortgage income taxable?

Accepted Answer

Generally no — it's loan proceeds, not income. Consult a tax advisor for your specific situation.

Question 6

What are the upfront costs in Watsonville?

Accepted Answer

Expect origination fees, FHA mortgage insurance, and closing costs. Costs vary by lender and loan size — get multiple quotes.

Reverse Mortgages in Watsonville, CA