Welcome to our online Reverse Mortgage Question Desk! Please type your question in the box below and our Reverse Mortgage Consultant will reply back to you very soon. We're here to provide answers for you.

If you need immediate phone assistance, please call us toll free 1-800-662-1962.

Q. Do I have to be a certain age to be eligible for a reverse mortgage?
A. All parties on title must be at least 62 years old, and the mortgage is based upon the youngest borrower's age.

Q. Will I still retain title (ownership) to my home?
A. Yes, you retain title to your home during the period when you have a reverse mortgage, just the same as with a regular home purchase mortgage. At least one person on the title must remain living in the home, maintain the home and continue to pay taxes and insurance.

Q. What types of homes are eligible?
A. Your home must be a single-family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums, and some manufactured homes are eligible. Condominiums must be FHA-approved.

Q. What are my payout options?
A. Your program options are an Adjustable Rate or Fixed Rate. If you decide to do an adjustable rate loan you can choose from a lump sum, a monthly payment, a term (certain amount of years) or a line of credit or a combination of these plans (i.e., a monthly income AND a line of credit). The unused portion in the line of credit grows with the HECM loan. You can also choose a fixed rate loan in which your proceeds will be in a lump sum.

Q. What are the fees or costs involved?
A. There are fees and costs to set up the Reverse Mortgage, however, these are typically paid using the loan proceeds at closing. FHA charges 2% of the appraised value or the maximum lending limit for the upfront mortgage insurance premium, whichever is less. Then there is an origination fee and the normal closing fees, such as title, escrow, recording, appraisal, termite, etc.

Q. How will the interest rate on an adjustable loan affect my payments?
A. The interest rates will be set the week that we close the loan. If you are receiving a monthly payment, the payment you receive will be set regardless of the interest rates. The interest rates affect the balance of how much is due at the end of the loan term. The interest on this loan adjusts monthly.

Q. What is the monthly servicing fee?
A. There is a monthly fee for servicing the loan. When the loan closes, there is an amount "set aside", called a "servicing set aside." This way, the servicer doesn't have to go to the borrower every month to request money.

Q. Will the reverse mortgage affect my Social Security?
A. Your Social Security benefits generally are not affected. However, you should always consult your attorney or accountant before deciding on a reverse mortgage.

Q. What about SSI and state benefits such as Medicaid?
A. If you receive SSI, Medicaid, or other public benefits, these loan advances are counted as "liquid assets" if you keep them in an account past the end of the calendar month in which you receive them. If you do, you could lose your eligibility for these programs if your total liquid assets (for example, money you have in savings and checking accounts) are greater than these programs allow. We always recommend you consult the administrator of these plans, an attorney, and/or an accountant before deciding on a reverse mortgage.

Q. Do I still pay property taxes and insurance?
A. Yes! You must continue to pay property taxes and homeowners insurance.

Q. How do I receive my payments?
A. You can receive your payments with a monthly check, or an automatic deposit into the account you choose. If you want the money deposited directly into your account, we would need a voided check or deposit slip to submit to the Servicing Department.

Q. Who services and sends me my payments?
A. Generation Mortgage Company services nearly all of their loans. If you elected the monthly payment option, we will send your monthly payments out on the 1st of every month. Our Loan Servicing Department is located in Atlanta, GA.

Q. Who arranges for the appraisal?
A. We will arrange for a FHA-approved appraiser. A copy of the appraisal can be included in your closing documents upon request.

Q. What happens to my spouse if I pass away first?
A. If your spouse is a co-borrower of the loan, he or she can continue to live in the home, and continue to receive the existing benefits move as long as the home is maintained and taxes and insurance are paid. Repayment would not be required until your spouse passes away or decides to move, at that time the loan balance would be due and payable.

Q. If I choose to receive the regular monthly payments, will the reverse mortgage stop paying me once I have reached a certain age or once I have received a certain amount of money?
A. If tenure is selected, you will continue to receive the same monthly payment for as long as you live in your home. If term option is selected, payments will end at a certain age.

Q. What if I decide to sell my home?
A. If you choose to sell your home, the outstanding loan balance becomes due and payable. You or your estate will receive any proceeds exceeding the loan balance.

Q. If my home appreciates during the mortgage term, who will be entitled to that money?
A. Under the FHA Home Equity Conversion Mortgage (HECM) program, you are to pay back to the lender only the outstanding balance. Any money remaining after the mortgage is paid goes to you or, upon your death, to your heirs.

Q. Can I be forced to sell or vacate my home if the money I owe on the loan exceeds the value of my home?
A. As long as you continue to occupy the property as your principle residence, maintain your home, and continue to pay your taxes and insurance, you will not be forced to sell or vacate your home - even if the total of the mortgage payments made to you, plus interest, exceed the value of the property. The required Mortgage Insurance Protection (MIP) premium and monthly set aside protects you should your property value experience a decline.

Q. What if I move out for a while, will the loan become due?
A. FHA's policy states that if a borrower is out of the home for 12 consecutive months, the loan would become due.

Q. When is the loan due?
A. When none of the borrowers are remaining in the home, the loan is due, or you may choose to pay off the loan at anytime. The family or heirs can sell the home or refinance the home and pay off the loan as with any other loan on the property.
Note: There are default measures that would require your loan to become due, this information is set forth in your loan documents which you will receive should you decide on a reverse mortgage.

Q. How much will I owe at the end of my loan?
A. All the money borrowed, including any money used to pay the loan closing costs, all accrued interest, financial and service fees and MIP (HECM).

Q. What if I owe more money than the home is worth?
A. The HECM reverse mortgage is a "non-recourse loan". This means that the HECM borrower (or his or her estate) will never owe more than the loan balance or value of the property, whichever is less; and no assets other than the home must be used to repay the debt. This applies only when the borrower or estate choose to sell the property to pay off the reverse mortgage loan. If the borrower or estate want to retain the property the balance must be paid in full. If there is money left after paying off the existing loan, the family, heirs or estate receive the money

Q. Will I still have an estate that I can leave to my heirs?
A. When you sell your home or no longer use it for your primary residence, you or your estate will repay the loan amount you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

Q. How long do the heirs have to sell the property?
A. As long as the heirs are marketing the property in good faith, the servicer will allow three-month periods, up to one year on the FHA product.