A reverse mortgage is a loan that allows homeowners aged 62 or older to convert part of their home equity into tax-free funds. Unlike a traditional mortgage, you don’t make monthly payments. Instead, the loan is repaid when you sell the home, move out, or pass away.

A reverse mortgage line of credit allows you to withdraw funds as needed, offering flexibility and control. If you don’t use the credit, it grows over time, ensuring more resources are available in the future.

No, withdrawals from a reverse mortgage are tax-free because they are considered loan proceeds, not income.

No, withdrawals from a reverse mortgage are tax-free because they are considered loan proceeds, not income.

No, withdrawals from a reverse mortgage are tax-free because they are considered loan proceeds, not income.

To qualify, you must:

1-Be at least 62 years old.

2-Own your home (or have significant equity).

3-Use the home as your primary residence.

4-Meet financial assessment requirements to ensure you can pay property taxes, insurance, and maintenance costs.

Yes, you retain ownership of your home and can live there as long as you meet loan terms, such as paying property taxes, homeowners insurance, and maintaining the property.

You can only lose your home if you fail to meet the loan terms, such as keeping up with property taxes, insurance, or maintenance. If these are kept current, you can remain in your home for as long as you like.

The loan is repaid when you sell the home, no longer use it as your primary residence, or pass away. Typically, your heirs can choose to sell the home to repay the loan or refinance it if they want to keep the property.

You can use reverse mortgage funds for any purpose, such as:

Covering long-term care expenses.

Paying off existing debts.

Supplementing retirement income.

Making home improvements or renovations.

Any other personal or financial need.

Unlike long-term care insurance, a reverse mortgage doesn’t require medical underwriting, making it accessible for those who may not qualify for traditional insurance. Additionally, it provides flexible, tax-free funds without monthly premiums.

Yes, reverse mortgages have upfront costs, including origination fees, mortgage insurance premiums, and closing costs. These are typically financed into the loan, so you don’t pay out-of-pocket.

Yes, your heirs can inherit the home. They will need to repay the loan balance, usually by selling the home or refinancing the loan.

Reverse mortgages are non-recourse loans, meaning you or your heirs will never owe more than the home’s value at the time of sale. The Federal Housing Administration (FHA) insurance covers any shortfall.

Yes, but you’ll need to use part of the reverse mortgage proceeds to pay off your current mortgage first. The remaining funds will then be available for your use.

The amount is based on:

Your age (older borrowers can access more funds).

The value of your home.

Current interest rates.

FHA lending limits.

A reverse mortgage does not typically affect Social Security or Medicare. However, needs-based programs like Medicaid or Supplemental Security Income (SSI) may be impacted if you don’t spend the funds within the same month of receipt.

As a borrower, you must:

Pay property taxes.

Maintain homeowners insurance.

Keep your home in good condition.

Yes, you can pay off your reverse mortgage at any time without penalties.

If you move out permanently (e.g., to a care facility), the reverse mortgage becomes due. Temporary absences (less than 12 months) do not trigger repayment.

A reverse mortgage doesn’t require monthly payments, whereas a home equity loan does. With a reverse mortgage, repayment happens only when the loan matures (e.g., sale or move-out).

If you’re looking for flexible, tax-free funds to enhance retirement or cover long-term care needs, a reverse mortgage may be a great solution. Schedule a consultation with Money Valve Mortgage to explore your options.