Q & A

Frequently Asked Questions


We try to anticipate questions you might have about our PRODUCTS and SERVICES relating to a Reverse Mortgage..  For additional information please send us an email and we will respond quickly. 

 E-mail:  jhandy@washington-capital.com or rkinreverse@gmail.com.



What is the diffence between a Reverse Mortgage and a Home Equity Loan?

With a traditional mortgage loan or a home equity line of credit (HELOC), you  must meet minimum income and credit requirments to qualify for the loan and you have to make monthly loan payments.  With a Reverse Mortgage Loan you make NO monthly loan payments!



Do I still own my home with a Reverse Mortgage loan?

Yes.  As with traditional mortgage loans, you keep the title to your home and the lender becomes a lienholder.  You own and can remain in your home as long as you meet all the reverse mortgage loan requirements. 



Do I have to repay a reverse mortgage loan?

Yes, eventually.  However, repayment isn’t due during the life of the loan provided you live in your home as your primary residence, you maintain it according to FHA requirements, and you pay required property taxes and insurance.



Is any home eligible for a reverse mortgage loan?

Most single-family homes, two-to-four unit owner-occupied dwellings or townhouses are eligible for a reverse mortgage loan.  The home must meet FHA minimum property standards.  If home repairs are required, they can be completed after closing using funds from the reverse mortgage loan.



Does a reverse mortgage loan affect my eligibility for Social Seurity or Medicare benefits?

A reverse mortgage loan usually does not affect eligibility for entitlement programs, such as Medicare or Social Security benefits.  Some needs based government benefits, such as Medicaid and Supplemental Security Income (SSI) may be affected by a reverse mortgage loan.  You should consult a qualified professional to determine if there would be any impact to your government benefits.



Do I have to make monthly mortgage loan payments?

NO.  Unlike a traditional home mortgage loan or home equity loan, you do not make monthly loan payments.  As with all mortgage loans, you must continue to pay your property taxes and homeowners insurance premiums.



What are the payment options for a reverse mortgage loan?

You can get money in a lump-sum, a monthly check, a line of credit or a combination of these options.  You choose the option that best fits your needs.



Do I have to pay income taxes on the money I get from a reverse mortgage loan?

No.  Funds from reverse mortgage loans are considered loan proceeds and not income, the money you receive is generally not concidered taxable income.  If in doubt, please consult your tax advisor for your particular situation.



Are there any restrictions on how I use the money I receive?

No.  You can use the money from your reverse mortgage loan any way you like. Many people put the proceeds into a line of credit account for home repairs or improvements.  Others use it ot pay for in-home health care, medical costs or property taxes.



What happens to my home upon my death?

Upon your death, your heirs can keep your home by repaying the full loan balance.  The heirs can also sell the home, use the proceeds to pay off the full loan balance, and keep the difference between the loan balance and the funds received form the sale of the home.



What if the loan is more than my home is worth?

When you sell your home, your repayment responsibility is limited to the value of your home, even if your loan balance exceeds that amount.  However, if you or your heirs desire to keep your home, the full loan balance would need to be repaid.



How do I know if I qualify for a Reverse Mortgage?

Qualifying depends on the following important information…. Reverse Mortgage borrowers must be 62 years of age or older.  Reverse Mortgage borrowers must own and live in the home as their primary residence.  The Reverse Mortgage is calculated on your age, appraised home value and current interest rates.


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