Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You keep the title throughout the loan. The lender is repaid when you sell, move out, or pass away.

Question 2

What happens if I outlive the loan?

Accepted Answer

Nothing bad. You stay in the home as long as it's your primary residence. The loan doesn't come due until you leave.

Question 3

Can my heirs keep the house after I pass?

Accepted Answer

Yes. They can pay off the reverse mortgage balance and keep the property. They typically have 12 months to do so.

Question 4

Is the cash I receive taxable?

Accepted Answer

Generally no. Reverse mortgage proceeds are loan advances, not income. Consult a tax advisor for your specific situation.

Question 5

Does my Sebastopol property type affect approval?

Accepted Answer

It can. Properties with acreage, outbuildings, or non-standard construction face closer appraisal review. Condition matters.

Question 6

What is the HUD counseling requirement?

Accepted Answer

It's a mandatory session with an approved housing counselor. You must complete it before the lender can process your application.

Reverse Mortgages in Sebastopol, CA