Take some time to browse answers to the most frequently asked questions surrounding a reverse mortgage. There are quite a few common myths and misconceptions that will be addressed right here – with facts. We’re here to answer your questions, so please feel free to contact us directly.

Does the Government or bank take my home?

No, your home is yours to keep! A reverse mortgage is simply a government insured loan secured by the equity in your home.

How do I receive my proceeds?

You can get a lump sum payment, save the money in a credit line with future growth, or choose a monthly distribution for life. The choice is yours!

Are there limits on how I can use the proceeds?

Your proceeds can be used however you wish. You can use the money for home improvements, to take a vacation and travel, to pay for prescription drugs or medical needs, or simply to enjoy a better quality of life.

When do I have to pay back my loan?

The loan is paid back when the last surviving spouse no longer resides in the home as a primary residence, usually though the sale of the home.

When do I have to pay back my loan?

The loan is paid back when the last surviving spouse no longer resides in the home as a primary residence, usually though the sale of the home.

How does a reverse mortgage affect the future sale of my home?

After the last surviving spouse is no longer in the house, your heirs can pay off the loan, refinance the mortgage, or sell the house.

What if I owe more than the house is worth when I leave the home?

This is an FHA insured non-recourse loan, so your estate and/or heirs would never owe more than what the home sells for.

Do I have to pay taxes on this money?

Since a reverse mortgage is a loan, the loan proceeds are tax-free and not considered income. But always consult with your tax advisor.

Will this loan affect my Social Security or Medicare?

Reverse mortgage loans do not normally affect your eligibility for traditional Social Security or Medicare. Please consult your financial advisor if you get supplemental Social Security benefits or state-funded medical benefits beyond Medicare coverage.

What if I own a condo or mobile home?

If your manufactured home is built after June 15th, 1976 and is FHA approved, you may have reverse mortgage options. FHA approved condominiums are typically eligible as well.

Do I have to undergo HUD approved counseling?

Yes, HUD approved counseling is mandatory for all reverse mortgages. For your protection and peace of mind, we want to make sure you thoroughly understand the terms of the loan via an independent third-party.

What is mortgage insurance premium (MIP)?

MIP is required for a US government-backed, FHA insured reverse mortgage loans to protect you, your heirs, and your estate — and it’s what makes a reverse mortgages possible!

Do my spouse and I both have to be 62 to qualify?

Only one person in the home needs to be 62 to qualify, but there are some risks associated with this type of transaction. Please consult with Payless Reverse Mortgage to thoroughly explore your options.