Question 1

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. The borrower keeps title to the home. The lender records a lien, exactly as with a traditional mortgage, and does not take ownership.

Question 2

Do I have to make a monthly mortgage payment?

Accepted Answer

No monthly mortgage payment is required while you live in the home as your primary residence and keep property taxes, homeowners insurance, HOA dues, and maintenance current. Those obligations continue for the life of the loan.

Question 3

What happens to my heirs?

Accepted Answer

Heirs can keep the home by repaying the loan balance, often by refinancing, or they can sell it and keep any remaining equity. HECMs are non-recourse, so neither the borrower nor the heirs owe more than the home's value at repayment.

Question 4

When does a reverse mortgage become due?

Accepted Answer

The loan becomes due and payable when the last borrower permanently leaves the home through sale, a permanent move, or death, or if loan obligations such as property taxes, insurance, and primary residency are not met.

Question 5

Is a reverse mortgage a government loan or benefit?

Accepted Answer

No. It is a loan that must be repaid. HECMs are insured by the FHA, a government agency, but the loan is made by a lender and is not a government grant or benefit.

Question 6

Is HUD-approved counseling required?

Accepted Answer

Yes, for a HECM. An independent HUD-approved counselor reviews the program, its costs, and alternatives with you before an application can proceed. Counseling is available by phone or in person.

Question 7

What will my rate and costs be?

Accepted Answer

Rates, fees, and available proceeds depend on your age, home value, program, and current market rates, so they are not published. Call Living62 at (916) 624-0767 for figures specific to your situation.

Question 8

Which areas does Living62 serve?

Accepted Answer

Living62 works with homeowners in California, Idaho, Texas, Tennessee, Georgia, Oklahoma, and Colorado. In Texas, both spouses generally must be 62 or older.