What are the all of the costs I need to pay?

The only out of pocket costs you need to pay are counseling and appraisal. The costs financed into the loan can add up, which are origination, mortgage insurance and interest.

Does the money I receive from a reverse mortgage get taxed?

Proceeds from the reverse mortgage are not considered income and are not taxable. The interest accrued on the loan is deductible when the loan is repaid.

Will my heirs still inherit the home?

The estate will inherit the home, with a lien on the title. The lien is the amount of the loan plus interest.

Am I selling my home to the lender?

The lenderdoes not purchase your home, they are just adding a liens to the title so they can collect on the loan amount plus interest. The title will remain in your name.

Does my social security or medicare get affected?

Entitlement programs like Social Security and Medicare are not affected, but needs based programs like Medicaid can be affected in if the borrower withdraws a large amount of money in few months timeframe.

Can homeowners get evicted or foreclosed on?

The FHA reverse mortgage was created to let the senior stay in their home for the rest of their lives. The homeowner cannot be foreclosed on or evicted for missing a payment. The senior must maintain the property and keep current on insurance and fees.

What if I outlive the reverse mortgage?

A reverse mortgage is due when all borrowers have passed away or have permanently moved out. Therefore you cannot outlive the loan.

What is the difference between this and a home equity loan?

• The only similarity to a home equity loan is that they both use the home as collateral.
• Anyone can apply for a home equity loan. For a reverse mortgage the homeowner must be 62.
• A home equity loan requires disposable income and stable credit history. In a reverse mortgage, income and credit are not a factor.
• A home equity loan must be repaid over 5 or 10 years. A reverse mortgage is not repaid until the homeowner passes away or permanently moves out.
• A home equity loan has few fees beyond interest. A reverse mortgage has closing costs and a slightly lower interest rate.