Home Equity Conversion Mortgage FAQs

Yes — your heirs can choose to repay the reverse mortgage balance and keep the home, or sell the property to repay the loan. Any remaining equity after the loan is paid off goes to your heirs.

You cannot be forced to leave your home as long as you continue to pay property taxes, homeowners insurance, and maintain the property. Failing to meet these obligations can result in default, which may lead to foreclosure.

Unused funds in a reverse mortgage line of credit grow at the same compounding rate as the loan’s interest plus mortgage insurance premium. This means your available line increases over time, potentially giving you access to more money in the future.

A reverse mortgage line of credit gives you access to funds you can draw as needed. Many financial planners consider it a retirement tool because the line of credit can grow over time, providing a flexible source of tax-free funds for unexpected expenses or supplementing income.

There is no specific minimum credit score required to qualify for a reverse mortgage. However, lenders will evaluate your credit history and ability to meet ongoing obligations like property taxes and insurance.

No — reverse mortgages are only available on your primary residence. You must live in the home as your main residence for most of the year to qualify.

No — reverse mortgage proceeds are considered loan advances, not income, so they are not taxable. This means you can use the funds without affecting your income tax liability.

A home equity loan or HELOC requires monthly payments and has a fixed repayment schedule, while a reverse mortgage doesn’t require payments as long as you live in the home. Instead, repayment happens when you move out, sell the home, or pass away.