| 1. |
What is a Reverse Mortgage? Answer |
| 2. |
Am I qualified for a reverse mortgage if I currently have an existing loan on my home? Answer |
| 3. |
What if my spouse is under the age of 62? Answer |
| 4. |
Does the IRS consider the monthly advances from the reverse mortgage as income? Answer |
| 5. |
My property is held in a living trust. Do I qualify? Answer |
| 6. |
My spouse is permanently in a nursing home. Can we still apply for a reverse mortgage? Answer |
| 7. |
My Mom is considering a reverse mortgage, but I'm concerned. What happens if the reverse mortgage leaves her with little equity in her home and she has to go into a nursing home? Who will pay her nursing home expenses? Her only income is Social Security. Answer |
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Q
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What is a Reverse Mortgage? |
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A
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A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse morgage, you can turn the value of your home into cash without having to move or to repay the loan each month. |
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Q
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Am I qualified for a reverse mortgage if I currently have an existing loan on my home? |
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A
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Yes, but the existing loan must be paid off prior or at the time of settlement of the reverse mortgage. |
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Q
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What if my spouse is under the age of 62? |
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A
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The younger spouse is not eligible to participate in the reverse mortgage program. All individuals on title must be age 62 or older. |
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Q
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Does the IRS consider the monthly advances from the reverse mortgage as income? |
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A
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No. The monthly advances are actually loan disbursements. |
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My property is held in a living trust. Do I qualify? |
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A
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Yes, as long as you are the primary beneficiary and are qualified by age. |
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Q
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My spouse is permanently in a nursing home. Can we still apply for a reverse mortgage? |
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Yes, the requirement is that only one owner occupy the property as their primary residence. |
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Q
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My Mom is considering a reverse mortgage, but I'm concerned. What happens if the reverse mortgage leaves her with little equity in her home and she has to go into a nursing home? Who will pay her nursing home expenses? Her only income is Social Security. |
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A
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If your mother needs to move into a nursing home, the loan from the reverse mortgage will become due. She'll need to sell her home to payoff the loan. If this uses up most of her money, she will be able to apply for Medicaid assistance. Generally, she'd be elibible if her assets are below $2000 - check with your state for details. Once she's on Medicaid, her Social Security income goes to the nursing home - except for a small monthly allowance. Medicaid picks up the balance between what she can pay and the cost of her care. |
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