#15 Can I pay my outstanding loan balance in full without paying a penalty?
#16 Is the money that I receive taxable?
#17B Am I still eligible if I'm receiving
State
Disability or
Medical benefits.
#18 Are there any fees or costs in obtaining a Reverse Mortgage?
#15 Can I pay my outstanding loan balance in full without paying a penalty?
Yes. Your lender will also accept partial payments if you desire to reduce your loan balance.
#16 Is the money that I receive taxable?
No. The IRS treats these funds as borrowed money, which makes them non-taxable.
#17A Am I still eligible to receive proceeds if I'm drawing Social Security or other retirement benefits?
Loan Proceeds Do not affect Social Security Benefits or other benefits.
#17B What if I'm receiving Social
Security Disability (SSI) or medi-cal benefits?
Benefits and eligibility are not affected since your home is exempt. Proceeds
are a loan and not considered an asset. You must follow the guidelines
established by states agencies.
#18 Are there any fees or costs in obtaining a Reverse Mortgage?
Yes, just like any other mortgage. All other costs, which include a lender origination fee, normal closing costs (escrow) and the initial FHA Mortgage Insurance Premium (MIP) can be financed.
#19 Can I be forced to sell or vacate my home if the loan amount exceeds the value of my home?
No. The FHA mortgage insurance premium guarantees all payments that you are entitled to receive. You cannot be forced to sell your home and you can continue living there regardless of your
outstanding loan balance.
#20 If I'm receiving a monthly payment, will my income
stop if the loan amount exceeds the value of my home?
No. If the loan amount exceeds the value of your home, FHA guarantees to pay the difference to the lender.
There is no debt passed on to your heirs.
|
