Who Can Live in the Home with a Reverse Mortgage?

Will my partner, family members, or dependents live in my Keizer OR property if I have set up a reverse mortgage?

Answer:

Provided that you still live in the property, a reverse mortgage does not change who can reside with you.

Virtually all reverse mortgages available today are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. If you still live in the property, using a HECM won’t change who can live with you. But, in the event you die or vacate the property, those who reside with you may not be able to carry on living in the home without you.

If you are co-borrowing your HECM with a spouse (or anyone else), your co-borrower can remain in the house even if you die or vacate the home. If you are living with a non-borrowing spouse or partner, that person might be able to stay in the house once you pass away if they qualify under guidelines established by HUD. Note that this benefit for non-borrowing spouses and partners would not apply if you move to a elderly care facility or other health care facility for more than 12 continuous months. In addition, it would not apply when you do not live in the home for most the year for other purposes.

Children, relatives, along with other dependents that aren’t co-borrowers on the reverse house loan will more than likely have to vacate the Keizer Oregon home that you’ve the reverse mortgage encumbered with.

A large number of consumers in Keizer Oregon or their heirs will need to sell their property so that they can pay back the reverse mortgage. With a FHA-insured HECM loan, in the event the loan balance is more than your property is valued at, you or your eOregon do not need to pay the excess. When you or your heirs sell the house, the lender will take the proceeds from the sale as repayment on the mortgage loan, and the FHA insurance will take care of any remaining loan balance.

Should you or perhaps your heirs would want to retain the property instead of selling it, the mortgage loan will have to be paid off with another source of funds. Even so you or your heirs will not be required to pay more than the full loan balance or 95 % of the property’s appraisal value, whichever is less.

Get support

Prior to applying for any reverse mortgage loan in Keizer, you and your spouse or partner will want to seek a HUD-approved counselor so that you can determine if a reverse mortgage is right for you. To speak to a HUD-approved reverse mortgage (HECM) counselor visit HUD’s counselor search page, or call HUD’s housing counselor referral line at (800) 569-4287.

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