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 the home is still yours as long as you live there.

Question 2

What happens when I move out or pass away?

Accepted Answer

The loan becomes due. Heirs can sell the home, repay the balance, or refinance. They keep any remaining equity.

Question 3

Is the cash I receive taxable income?

Accepted Answer

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

Question 4

Can my spouse stay if I pass away first?

Accepted Answer

If your spouse is on the loan, yes. Non-borrowing spouses have protections — but only if set up correctly at closing.

Question 5

What's the mandatory counseling requirement?

Accepted Answer

HUD requires a session with an approved housing counselor before you apply. It typically runs 60–90 minutes.

Question 6

Does my home in Tuolumne County qualify?

Accepted Answer

Most single-family homes do. Rural parcels, manufactured homes, and multi-units have additional eligibility rules.

Reverse Mortgages in Sonora, CA — Turn Equity Into Income