The lender owns the home.
You will retain the title and ownership during the life of the loan, as long as you continue to live in the home, maintain your home and pay your property taxes and homeowners insurance.
The home must be free and clear of any existing mortgages.
Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.
Once loan proceeds are received, you pay taxes on them.
Reverse mortgage loan proceeds are tax-free. Money you receive from refinancing your home, regardless of the type of loan is not taxable. If you are on a low income government subsidy, check with the appropriate agency for any impact on your eligibility.
There are restrictions on how the proceeds may be used.
The cash proceeds from the reverse mortgage loan can be used for any reason. Many borrowers use it to supplement their retirement income, delay receiving social security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children.
Only low income seniors need reverse mortgages.
Many affluent senior borrowers with high dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning. We work closely with financial professionals and estate attorneys to protect your estate and enhance your overall quality and enjoyment of life.