FAQs
Frequently Asked Questions
Over the years, I’ve answered thousands of questions from homeowners, adult children, financial planners, and families considering a reverse mortgage. These are the questions that come up the most — with simple, straightforward answers you can trust.
At Long Beach Reverse Mortgage, transparency is the foundation of every conversation, and this FAQ section makes the entire reverse mortgage process feel easy and stress-free.
No.
You remain the full legal owner of your home.
You keep title. You stay on the deed. You remain completely in control.
A reverse mortgage is simply a loan, not a transfer of ownership.
Yes. Your heirs can:
- Keep the home by paying off the loan
- Sell the home and keep the remaining equity
- Walk away if the loan balance is higher than the value (non-recourse protection)
They choose what’s best for them.
Your heirs will have up to 12 months to:
- Sell the home
- Refinance it
- Or walk away
During that time, no payments are due and no one is forced out.
No.
You do not make monthly mortgage payments on a reverse mortgage.
You must still:
- Pay property taxes
- Maintain homeowner’s insurance
- Keep the home in good condition
But there are no required mortgage payments
No.
Reverse mortgages are non-recourse loans.
Neither you nor your heirs ever owe more than the home’s value at the time of repayment.
You can move at any time.
When you leave the home permanently:
- The loan becomes due
- You or your heirs sell the house or refinance
- Any remaining equity is yours
There is no penalty for selling or moving.
Yes.
Reverse mortgages use a light credit review, not strict score requirements.
Many seniors qualify easily even with:
- Low credit scores
- Old collections
- Past late payments
- Medical bills
- Limited income history
It is much easier than qualifying for a traditional mortgage.
Not a problem.
A reverse mortgage will pay off your existing mortgage completely, and you no longer have a monthly mortgage payment afterward.
This is one of the biggest benefits.
It depends on:
- Your age
- Your home’s value
- Current interest rates
- Loan type (HECM or jumbo)
At Long Beach Reverse Mortgage, I provide a personalized proposal that shows your exact numbers.
No.
Reverse mortgage proceeds are tax-free, because they are loan advances, not income.
Always consult your tax professional for your specific situation.
Only if you fail to meet basic obligations such as:
- Paying property taxes
- Maintaining homeowner’s insurance
- Living in the home as your primary residence
- Keeping the property in good condition
These are the same responsibilities of any homeowner.
As long as these are met, you cannot be forced to leave.
No.
Many reverse mortgage clients still owe money on their home.
The reverse mortgage simply:
- Pays off the remaining balance
- Eliminates the monthly payment
- Gives you access to additional funds (if available)
- Insured by FHA
- Maximum loan amount capped by FHA limits
- Offers the growing line of credit
- Most common loan for seniors
- Not FHA-insured
- Higher loan amounts
- Great for high-value homes in Long Beach
- More flexibility on condos
Typically 30–45 days.
Timelines depend on:
- Counseling availability
- Appraisal scheduling
- Title work
- Repairs, if needed
I handle the coordination for you.
Interest rates vary based on:
- Loan program
- Market conditions
- Adjustable vs. fixed rates
Most seniors choose adjustable-rate HECM loans because they offer:
- Lower upfront costs
- Access to the growing line of credit
More flexibility
Absolutely.
At Long Beach Reverse Mortgage, communication is a priority.
I provide updates at every step:
- Application
- Counseling
- Appraisal
- Underwriting
- Closing
- Funding
You and your family always know what’s happening.
FHA insurance provides:
- Non-recourse protection
- Guarantee that you can stay in your home for life
- Assurance that your line of credit will grow
- Protection for surviving spouses
This insurance is one of the most valuable features of a HECM loan.
Yes — anytime.
I regularly speak with:
- Children
- Heirs
- Trustees
- Financial planners
- Attorneys
Everyone involved can have full clarity and peace of mind.
Yes.
You can refinance into a new reverse mortgage if:
- Your home value increases
- Your age increases (which it will!)
- You want to access more equity
- You want better terms
This is called a HECM-to-HECM refinance.
- Eliminate mortgage payments
- Increase monthly cash flow
- Pay off debt
- Cover medical expenses
- Fund caregiving
- Stay in their home
- Improve retirement security
- Increase independence
- Avoid burdening their children
Every homeowner has their own story — but these are the most common themes.