Reverse FAQ's

Our frequently asked questions section addresses some of the most common questions our clients have about reverse mortgages.

Find answers to some of the most common questions asked when refinancing. ​

No. Reverse mortgage borrowers retain 100% ownership of the home. Just like a traditional mortgage, a lien will be put on the home. Borrower(s) may not lose their home under normal circumstances as long as they comply with loan terms including paying for taxes, insurance, and maintaining the property. Also, unless a set-aside account is established, an escrow account is not typically set up to pay for taxes and insurance.

The disbursement options for a reverse mortgage depend on the type of product you obtain. Regarding the HECM reverse mortgage, loan funds can be dispersed through a full of or partial lump sum, a line of credit, monthly payments, or a combination of these ways.

Your Nationwide Equities loan officer can let you know how much money you’d be eligible for after considering the following factors:

  • The age of the youngest borrower
  • The property’s home value (based on an appraisal that will be part of the loan process)
  • The interest rate of your loan
  • Your current mortgage balance (which will be paid off if you take the reverse mortgage) 

Your loan officer will take into account which reverse mortgage program you’ll qualify for. Keep in mind, homes that are significantly higher than the national lending limit can take advantage of our EquityPower jumbo reverse mortgage. An EquityPower loan allows for loan limits up to $4 million.

Most reverse mortgage loans are typically paid back when the last borrower passes away. However, the loan will become due sooner if a borrower sells the home, permanently moves out, doesn’t occupy the property as their primary residence, or fails to comply with the loan terms. It is crucial that borrowers understand that the loan terms require them to continue to pay their property taxes, insurance and maintain the property or they could risk foreclosure.

All of our Reverse mortgage programs are non-recourse loans. This means that if somehow the loan balance ends up surpassing the value of the home, the lender cannot collect more than the value of the home. For example, with a HECM reverse mortgage, the loan balance and the home value is covered by the Federal Housing Administration’s (FHA) insurance fund.

All of our Reverse mortgage programs are non-recourse loans. This means that if somehow the loan balance ends up surpassing the value of the home, the lender cannot collect more than the value of the home. For example, with a HECM reverse mortgage, the loan balance and the home value is covered by the Federal Housing Administration’s (FHA) insurance fund.

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