Reverse mortgage FAQs

No. You remain the owner of your home as long as you continue to meet the loan obligations, which typically include paying property taxes, homeowners insurance, and maintaining the home.

HECM borrowers generally do not make required monthly principal-and-interest mortgage payments, but they remain responsible for taxes, insurance, maintenance and other loan obligations.

If you have an existing mortgage, reverse mortgage proceeds can generally be used to pay it off. Remaining funds may be available based on your loan amount and payout option.

The amount depends on factors such as age, appraised home value, current interest rates, existing liens, financial assessment and program limits.

The loan typically becomes due and payable when the last borrower permanently leaves the home, sells it, or passes away, subject to program requirements.

Heirs generally have options to repay the balance and keep the home or sell it, subject to the loan terms and applicable timelines.

FHA-insured HECMs are non-recourse loans; repayment is generally limited by the value of the home, subject to program rules.

Yes. HUD-approved counseling is required before an FHA-insured HECM can close.

Loan proceeds may affect needs-based benefits in some circumstances. Discuss your situation with appropriate advisors.

It can sometimes be refinanced when eligibility and program requirements are met and the new loan provides a bona fide benefit.