Updated: Jul 16, 2019
After retirement, many people struggle without the regular income they once had. If you’re a homeowner, a reverse mortgage is one option that may help you manage your financial challenges. Best of all, you don’t have to pay taxes on the proceeds or make monthly mortgage payments. But, before you consider a Reverse Mortgage, let me answer several of the questions I’m most commonly asked:
Q) With a Reverse Mortgage, does the bank own my home?
A) No, the owner remains in legal title to the property at all times. If the house is sold or you no longer occupy the house as your primary residence, the loan must be repaid (as with any home equity loan).
Q) Does the bank get my equity when I die?
A) No, the highest amount an owner can receive in a Reverse Mortgage is 74% of the appraised value or FHA loan limit whichever is less. All remaining equity after the loan is paid off goes to the heirs of the estate.
Q) Are there restrictions on a Reverse Mortgage?
A) Yes, at least one of the borrowers must be 62 years-old and it can only be made on the borrower’s primary residence.
“Good news, the funds received from this loan are considered equity and are not taxable or considered income when calculating these income related programs for Seniors.”
Q) Is my home eligible for a Reverse Mortgage?
A) In Tennessee, the answer is yes, as long as your residence meets the FHA guidelines. Like single family residences, duplexes, townhomes and FHA approved Condominiums just to name a few.
Q) How will the money I receive from a Reverse Mortgage affect my Social Security, Medicare or Income Taxes?
A) Good news, the funds received from this loan are considered equity and are not taxable or considered income when calculating these income related programs for Seniors.
Have additional questions or need help?
Call or email Kathey Grodi at 615-970-2216 or firstname.lastname@example.org