Reverse Mortgage Information Page

A reverse mortgage is a loan against a portion of a home's equity. To qualify, all homeowners must be at least 62 years of age. Cash may be accessed either through a line of credit, a lump sum payment, monthly payments or some combination of these options. Interest on the reverse mortgage accrues over time, but never needs to be paid back until the last surviving homeowner passes on or permanently moves out, and the house is sold or refinanced by the heirs. The proceeds of the reverse mortgage are not income taxable (either state or federal) since the money is a return of equity - not income.

"Under HUD (Housing and Urban Development) regulations, people who have reverse mortgages can never lose their homes," explains Celia Mason, a San Ramon Certified Senior Advisor and reverse mortgage specialist. "The seniors will never be forced to move out and no will ever owe more than the resale value of their home. Once upon a time all of those were possible, but since HUD stepped in, no one has to worry about such outcomes."

Call 1-888-973-8377 with any reverse mortgage questions.