Answers to frequently asked questions If you’re researching a reverse mortgage for yourself or a family member, you’re bound to have questions. To help you get started, here are answers to questions we are often asked about reverse mortgages. What is a reverse mortgage? What does "non-recourse" mean? Do homeowners lose their homes if they have a reverse mortgage? Can homeowners owe more than the value of their home? Won't homeowners be "stealing their children's inheritance" with a reverse mortgage? Will taking a reverse mortgage adversely affect benefits such as Medicare that a homeowner is already receiving? Reverse mortgages are complicated. How do you ensure that the homeowner understands the product? Q. What is a reverse mortgage? A.  Reverse mortgages are non recourse loans available to homeowners who are 62 years old or over. They allow homeowners to tap into the equity in their homes to provide a lump sum payment, a line of credit or to create an income stream. Q.  What does “non-recourse” mean? A.  Simply put, it means that neither you, your estate or heirs will ever owe more than the value of the home. Q.  Do I lose my home with a reverse mortgage? A.  This is a painful and common misconception that can keep you from considering a potentially valuable financial product … a product that may help you to stay in your home.  You neither lose your home, nor are you thrown out of your home.  You retain full title to your home, and can stay in the home until you need long term medical care, you pass away, or you decide to sell the home.  Plus, If one spouse requires long term medical care, the other spouse can continue to stay in the home and receive the benefits of a reverse mortgage. Q.  Can I ever owe more than the value of their homes? A.  The reverse mortgage is a non recourse loan, which means that it’s impossible for you, your heirs or estate to owe more than the value of the home. Q.  Won’t I be stealing their children’s inheritance with a reverse mortgage? A.  According to research, a main reason people take out a reverse mortgage is to reduce the burden on their children, and actual experience has demonstrated that children are most often in favor of a reverse mortgage.  As part of the loan process and as an added guarantee, adult children are encouraged to participate in the decision to purchase a reverse mortgage whenever appropriate or possible. Q.  Will taking out a reverse mortgage adversely affect my Medicare coverage?  A.  A reverse mortgage should not affect either Social Security or Medicare benefits the home owner is receiving.  Other needs-based programs like Medicaid or Supplemental Security Income may be affected and borrowers should consult a trusted adviser or the administrating agency before proceeding with the loan. Q.  Reverse mortgages are complicated.  How can I understand everything? A.  With their flexibility, the number of features available the products to choose between, reverse mortgages are a complicated product!  Our reverse mortgage loan officers work with you to ensure you understand your options and have the answers to all your questions.  Additionally, a cost-free counseling session with approved counselors is required.  Depending on the product selected, the counseling must occur prior to committing to the loan or during the loan process.  Depending on which product meets your needs, counselors are either Federal Housing Administration (FHA) or Federal National Mortgage Association (FNMA) approved, or independent contractors.  To make sure that family members also understand the product, whenever possible and appropriate adult children are also encouraged to be a part of the loan process.