Q: Will the lender own my home?
Q: Do I need to have good credit for a home equity conversion mortgage?
Q: What if my home sells for less than what I owe on the loan?
Q: Can I get a reverse mortgage if I already have a mortgage?
Q: Are there limits on how I can spend the money from my home equity conversion mortgage?
Q: Is this kind of loan used as a last resort for seniors?
Q: Who is eligible for a home equity conversion mortgage?
Q: Can my family be involved in my decision and the process?
Q: Can I lose my home because I live longer than expected?
Q: Why are you checking my credit history?
Q: What is a financial assessment?
This process helps borrowers understand their current financial situation and allows lenders to discern whether the borrower can manage their financial obligations. If the borrower does not meet U.S. Department of Housing and Urban Development (HUD) criteria set by the financial assessment guidelines, the lender is required to withhold a Life Expectancy Set-Aside (LESA) from the loan proceeds to pay property taxes and homeowners insurance.
*Homeowner is responsible for property taxes, homeowners insurance, and maintenance of your property.
Q: Will my children have to pay for the loan if I pass away?
- Your heirs can sell the home, pay off the loan and keep any remaining money from the sale.
- Your heirs have the option to retain ownership. If they decide to keep the home, they must pay 95% of the home’s appraised value or the loan balance—whichever is less.
- Your heirs can turn over the loan to the servicer to sell the property. This often occurs when an heir is not interested in keeping the home, and the balance is higher than the home’s value.