Question 1

Do I make monthly payments on a reverse mortgage?

Accepted Answer

No. No monthly mortgage payment is required. The loan balance grows over time and is repaid when you sell the home or it's no longer your primary residence.

Question 2

Can my spouse stay if I pass away first?

Accepted Answer

Yes, if they're listed as a non-borrowing spouse with proper protections in place. Ask your broker about eligible non-borrowing spouse rules before closing.

Question 3

What happens if I outlive the loan?

Accepted Answer

You can't be forced out as long as you meet loan obligations — insurance, taxes, and maintenance. The HECM is designed to last as long as you live in the home.

Question 4

Does Petaluma's property value affect how much I get?

Accepted Answer

Yes. Your payout depends on your age, current rates, and appraised value. Higher Sonoma County home values can support larger loan amounts.

Question 5

Is the money I receive taxable?

Accepted Answer

Reverse mortgage proceeds are generally not taxable income. Consult a tax advisor — your specific situation may differ.

Question 6

What's the difference between a HECM and a proprietary reverse mortgage?

Accepted Answer

HECMs are FHA-insured with federal loan limits. Proprietary products are private loans for higher-value homes that exceed those limits.

Reverse Mortgages in Petaluma, CA