A: YES. A non-borrowing can remain on title but must be 62 to be an “Eligible non-borrowing spouse.”

A: After the last borrower dies or permanently vacates the home for mental or physical illness, the NBS will need to make sure to keep up with all the obliga­tions of it being their primary home, paying property taxes, insurance, and maintenance.

A: No, the NBS is not a borrower or party to the loan in any way. No disbursements can be made during the deferral period other than repair charges paid through a repair set-aside. This means that the line-of-credit and monthly payments will cease, including a Life Expectancy Set-Aside (LESA) used to pay property charges.

A: You always continue to own your own home. It is a mortgage lien just like a traditional mortgage with the exception that you can choose not to make interest payments until you no longer live in the home.

A: While there are no credit score requirements, we still need to assess your income and credit for the purposes of qualifying. The underwriters are more lenient on credit scores but they will check to make sure you have enough income to pay for taxes, insurance, and HOA.

A: Borrowers under reverse mortgages must be able to pay the property charges associated with maintaining the home subject to the mortgage such as maintenance, property taxes, insurance, and HOA fees.

A: You can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments either for a set term or for as long as you live in the home, as a line of credit, or a combination of these. The biggest difference in the Reverse Mortgage Line of Credit and a traditional Home Equity Line of Credit, is that the Reverse Mortgage Line of Credit is guaranteed unlike a traditional which can be forfeited at any time by the bank.

A: The maximum value that a taxpayer is entitled to receive from a reverse mortgage at the time the loan is closed, or within the first 12 months after closing, is now limited to 60 percent of the “principal limit” or the sum of “mandatory obligations” plus 10 percent of the principal limit. After the first 12 months, the taxpayer is entitled to access the remainder of the loan.

A: You can use your reverse mortgage loan proceeds for anything you choose:

A: Repayment is required when the last surviving borrower no longer resides at the property or taxes and insurance on property are not kept current. The property must also be kept in good repair.

A: The Loan Closing Date for all HECMs is defined as the date on which you (the borrower) signs the note to your reverse mortgage. 

A: This means that you can never owe more than the value of your home at the time you or your heirs sell your home to repay your reverse mortgage.