Eric Stigall is a licensed mortgage professional.
This material is not from HUD or FHA and has not been approved by HUD or any government agency. The borrower must be at least 62 years old, own the home, and have sufficient equity.
While there are no mandatory monthly principal and interest mortgage payments required with a reverse mortgage, the borrower is strictly required to pay all property taxes, homeowner's insurance, and homeowners association (HOA) dues, as well as maintain the property in good condition. Failure to meet these financial and property obligations can cause the loan to become due and payable, which may result in foreclosure.
A reverse mortgage is a loan secured by your home that must eventually be repaid, typically when the last remaining borrower passes away, permanently sells the home, or moves out for more than 12 consecutive months. Moving or refinancing may affect the total finance charges over the life of the loan. Consult a financial advisor or tax professional regarding your specific situation and any potential impact on government eligibility programs (like Medicaid). Borrowers are required to complete a counseling session with a HUD-approved counseling agency prior to applying.