Who Can Live in the Home With A Reverse Mortgage?

Could my partner, family members, or dependents live in my Portland OR house if I have set up a reverse mortgage?

Answer:

Providing you still live in the property, a reverse mortgage will not change who could live with you.

The majority of reverse mortgages available today are House Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Provided you still reside in the property, having a HECM is not going to change who is able to live with you. But, in the event you die or leave the property, those who live with you may not be able to continue to live in the house without you.

For those who are co-borrowing your HECM with a spouse (or anyone else), your co-borrower can remain in the house even though you pass away or vacate the house. If you reside with a non-borrowing spouse or partner, that person might be able to remain in the home after you die if they are eligible under rules established by HUD. Understand that this benefit for non-borrowing spouses and partners is not going to apply if you move to a nursing home or other heath care treatment facility for longer than 12 consecutive months. Additionally, it would not apply when you do not live in the house for the majority of the year for other factors.

Children, relatives, or other dependents who are not co-borrowers on the reverse mortgage loan will in all probability need to leave the Portland Oregon home that you’ve got the reverse mortgage encumbered with.

Most homeowners in Portland Oregon or their heirs will need to sell their property in order to repay the reverse mortgage. With an FHA-insured HECM loan, if the loan balance is more than your home is appraised for, you or your estate do not have to pay the excess. After you or your estate sell the property, the lending company is going to take the funds from the sale as payment on the mortgage loan, and the FHA insurance will cover any remaining loan balance.

If you or perhaps your heirs would like to keep your property rather than selling it, the mortgage has to be paid off with another source of funds. But you or your heirs won’t be required to pay more than the full loan balance or 95 % of the house’s appraised value, whichever is less.

Receive support

Prior to applying for any reverse mortgage loan in Portland , you and your spouse or partner really should seek a HUD-approved counselor to assist you to determine whether a reverse mortgage fits your needs. To talk with a HUD-approved reverse mortgage (HECM) counselor go to HUD’s counselor search webpage, or connect with HUD’s housing counselor referral line at (800) 569-4287.

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