FAQs

A reverse mortgage is a loan on a portion of your home’s value, where the bank pays you, supplying you with a source of retirement income and allowing you to keep your home. The loan is repaid when you sell your property, move, or pass away.

With a reverse mortgage, you get to keep your home and get money for retirement with no monthly payments to the lender. There are no income or credit requirements to qualify, and you can receive your funds in a lump sum amount, as a monthly cash advance, as a credit line, or any combination of the three.

Unlike a home refinance or an equity credit line, there are no credit or income requirements with a reverse mortgage. You may even be eligible for a reverse mortgage if you still owe money on a first or second mortgage. All homeowners listed on the title must be at least 62 to be eligible. Talk to us if someone under 62 is on the title.

The amount you can receive is based upon the appraised property value, your age, and the type of loan you select. To explore how much cash could be available to you, try our reverse mortgage calculator.

No, the lender does not own your home when you have a reverse mortgage. You continue to own and hold title to your home with a reverse mortgage.

While you have a reverse mortgage you are responsible for basic home care. This includes:

• Living in the home as your primary residence
• Making necessary home repairs
• Maintaining your homeowners insurance
• Paying your property taxes

Yes, there are several different kinds of reverse mortgages that include features such as federal insurance and fixed or adjustable interest rates. For more information on how to compare your options, call us. We can help you customize a solution that is right for you.

Reverse mortgage fees are similar to a traditional mortgage, and they include origination fees, appraisal fees, closing costs, and other charges. They can be financed as part of your reverse mortgage.

Reverse mortgages are generally more expensive than regular mortgages because the interest rates can be higher. One of the primary factors for the higher interest rates is that the borrower makes no monthly payments until the loan is due. With a reverse mortgage, you will never owe the lender more than the value of your home, a protection guaranteed by the federal government.

You make no monthly payments while you are receiving income from the reverse mortgage. The loan can be repaid without penalty at any time, but becomes due and payable when you sell the home, move, or pass away. The reverse mortgage will also become due if you do not meet your responsibility to live in the home as your primary residence, make necessary home repairs, pay homeowner’s insurance, and property taxes.

Your heirs may choose to keep the home by converting the loan balance into a traditional mortgage or sell the home to repay the balance of the loan. Usually, at least six months are allowed before your heirs must make a decision about what they would like to do with the house.

Usually, a home in a living trust will qualify for a reverse mortgage. We can help review the certificate of trust with you to determine the eligibility.

Generally, money received from a reverse mortgage is categorized as a loan advance and not taxable income. Your circumstances could vary, and we suggest you speak with a trusted tax advisor for more information.

Reverse mortgages generally do not affect these benefits, however programs do vary from state to state, so you should consult your financial advisor or local senior agency for more information.

No, a reverse mortgage will not affect the future sale of your property.

Single family homes and many other properties may qualify for a reverse mortgage, including manufactured homes built after June 15, 1976, and FHA-approved multi-unit condos.

Instead of buying a new home and then taking out a reverse mortgage separately, you may purchase a new home and receive additional loan funds all in one transaction with a reverse mortgage for purchase. A reverse mortgage for purchase saves money on fees and closing costs.

Yes, a reverse mortgage can be refinanced.

Yes, with a federally insured Home Equity Conversion Mortgage (HECM) and some proprietary loans, meeting with a HUD-approved counselor is a requirement. The counseling meeting is designed for your protection and ensures that a reverse mortgage is right for you. Golden Gateway Financial provides you with a preparation session before and after the counseling session, so that you will know what to expect.

With a federally insured reverse mortgage (HECM), a mortgage insurance premium is collected, so that if your loan balance exceeds the current market value of your house, you will continue to receive your reverse mortgage funds and never owe more than the value of your home. This includes situations where you outlive the term of the loan, the home value depreciates, or the lender is no longer able to make payments to you.