How is this Loan Repaid

A Reverse Mortgage becomes due and payable when the last living qualified borrow either sells, dies or moves away.  However, the homeowner can be away from the home for up to 12 months before the loan must be repaid. At this time, you or your estate can elect to sell the house and use the proceeds to pay off the loan balance or use any other source of funds to pay off the mortgage. Remember, this is not required until all borrowers on the loan no longer occupy the home. If one homeowner leaves the property for any reason, the other homeowner can remain provided both borrowers are on the loan.

In the event the homeowner passes away, the estate can sell the property to pay off the loan. They will have 6 months to effect the loan repayment.

The loan does not require repayment until you fail to occupy the property for a period of 12 consecutive months.  If you elect to purchase a second home with the money you receive from the Reverse Mortgage, you can travel between your two homes as long as you meet the 12 months occupancy requirement.

If one or both of the homeowners are required to be hospitalized or placed in an extended care facility they still will not be required to repay the loan unless both are absent for longer than 12 months.

The total loan amount that needs to be repaid is determined by how much you received, plus interest and fees accrued.  All equity left after this loan is repaid belongs to you or your estate.

If the amount owed is more than the sale of your house, the remaining debt is paid by the insurance fund.  You, or your heirs, have no personal liability to the loan, thus a NON RECOURSE loan!