A reverse mortgage is an excellent financial choice but definitely not ideal for every homeowner. The option is advisable if you meet the age requirement, don’t have any plan to move from your home for the foreseeable future, and need money to pay for healthcare expenses or supplement your retirement income.

While it is an expensive financial choice, it lets you keep your home while accessing cash without having to pay a monthly mortgage.

No, the bank or lender does not own your home, even after you take out a reverse mortgage loan. You will retain the title and ownership of the home as long as you stay in the home and meet all the loan requirements. In other words, as a borrower, you will continue to maintain the home (as you normally would) and make sure you promptly pay insurance, property tax, and other relevant property fees.

Mobile homes generally do not qualify for a reverse mortgage loan. But your home might qualify if it is HUD-approved and satisfies the requirements of the FHA.

To attest that your home meets the Federal Manufactured Home Construction and Safety Standards, you are required to have a HUD seal pasted on the outside of your home. Giraffe experts are always glad to help if you need to determine the eligibility of your home.

You own your home, and the title to it remains with you, even if you take out a reverse mortgage. Part of your responsibility, as the homeowner, is to continue to pay property taxes, pay for home repairs, and also make sure that homeowners insurance is paid on time.

Typically, a reverse mortgage takes about 21 to 30 days to close. However, this time frame is the ideal situation, as the exact close-cycle may vary depending on certain factors.

First, you must complete the mandatory HUD counseling and return a duly completed and signed application. Then there is the appraisal period to consider. This can take up to a few weeks, depending on your location.

Giraffe can help walk you through the application process, and possibly speed things up.

Typically, a reverse mortgage loan is based on the equity available on your home and will last for the remainder of your life, provided you continue to fulfill the requirement of the loan. However, you can request a new appraisal to determine the remaining equity if you outlive the loan amount. This will give you access to extra funds to supplement your retirement income for the rest of your life.

If you were married to your partner when he or she took out a reverse mortgage loan, you have the right to continue to live in the home after your partner dies. The law protects the surviving spouse, regardless of whether they are listed on the loan.

However, you have up to 90 days to establish your legal right to live in the home by providing a marriage certificate, court order, death certificate, or a combination of other documents required by the lender.

Also, you must continue to fulfill all the requirements for the reverse mortgage, including paying property insurance and taxes, as well as keeping the home in good living condition. Lastly, you must not live outside the home for more than one year.

If you were not married to the borrower when they took out the loan, your rights may be limited to that of an heir to the deceased.

The loan proceeds from a reverse mortgage can be accessed in a few different ways, including:

• Lump-sum
• Monthly installments for as long as you live or a specified period
• Line of credit
• A combination of all the options

A home equity professional from Giraffe can help you determine the most suitable option for your specific circumstance.

Reverse mortgage payments are not considered income. Instead, they are loan proceeds, meaning they are not taxable.

The lender pays you the loan proceeds as a line of credit, a monthly advance, or pays everything at once. Also, since the interest on your mortgage is added to the loan balance, you can’t deduct it from your taxable income.

An increase in the value of your home means higher equity. If you already took out a reverse mortgage before the home gained more value, you can refinance to access more of the equity on your home if the increased value is substantial.

If you prefer not to refinance, your heirs will have more funds left after you pass away or when you choose to move out of the home and the property is sold to repay the loan.

No. Loan proceeds from a reverse mortgage are not income and do not affect Medicare, Social Security, or your pension benefits.

On the contrary, taking out a reverse mortgage will likely remove the need to immediately access your Social Security. In turn, you will be eligible to receive more benefits.

Keep in mind, though, that the payment from a reverse mortgage loan increases your monthly cash flow, which can impact Medicaid and other need-based benefits.

Reverse mortgage loans have a rescission period within which the borrower can choose to cancel the loan without any penalties. This cancellation period is typically three business days. You will have to repay any proceeds and interest accrued if you cancel the loan after the expiration of the rescission period.