By Phil Ganz
Edited by Ryan Skerritt
When thinking about a reverse mortgage, many homeowners have one big question: Who owns my home if I get this loan? The answer is simple—you do.
Have Questions About Reverse Mortgages? Talk to an Expert
A reverse mortgage is a special loan for homeowners who are 62 or older. It lets you use the money from your home’s value without having to sell or move. Some people think the bank takes your home, but that’s not true.
Your home still belongs to you, and your name stays on the title.
How Does a Reverse Mortgage Work?
A reverse mortgage is a special kind of loan for homeowners who are 62 or older. It lets you use some of your home’s value without selling it or moving out. Unlike a regular home loan, you don’t have to make monthly payments. Instead, the lender gives you money—either every month, all at once, or through a credit line you can use when you need it.
With a regular loan, you make payments and owe less over time. A reverse mortgage works the opposite way. As you get money from the loan, the amount you owe goes up, and the value of your home that you own goes down.
The loan must be paid back when you move out for good, sell your home, or pass away. When that happens, the home is usually sold to pay off the loan. If it sells for more than what’s owed, the extra money goes to you or your family. If it sells for less, you and your family don’t have to pay the difference.
Even with a reverse mortgage, your home is still yours. Your name stays on the title, and you keep living there. You just need to keep paying your property taxes, homeowners insurance, and take care of your home.
Simply put, a reverse mortgage can help you enjoy your retirement by turning your home’s value into money you can use today, without worrying about monthly loan payments.
Have Questions About Reverse Mortgages? Talk to an Expert
You Keep Full Ownership of Your Home
When you have a reverse mortgage, you remain the homeowner and continue to hold the title. Your ownership doesn’t change. You can stay in your home as long as you wish, provided you meet some straightforward requirements:
- Pay your property taxes and homeowner’s insurance on time.
- Maintain your home in good condition.
- Live in your home as your main residence.
These responsibilities are the same as those of any homeowner. A reverse mortgage doesn’t significantly alter your day-to-day life or the control you have over your home.
Have Questions About Reverse Mortgages? Talk to an Expert
Understanding How You Access Your Home Equity
A reverse mortgage allows you to convert part of your home's equity—the value you've built over time—into funds you can use right now. Unlike traditional loans, you don't need to make monthly payments.
The loan only needs to be repaid when you permanently move out, sell the property, or pass away. Until then, you’re free to use the money however you choose. Common ways people use their reverse mortgage funds include:
- Supplementing retirement income
- Making necessary home repairs or improvements
- Covering medical bills or everyday expenses
- Helping family members or pursuing personal goals
Ultimately, how you decide to use your home equity is entirely your decision.
Have Questions About Reverse Mortgages? Talk to an Expert
Protections and Considerations for Heirs
A reverse mortgage includes important protections for your family and heirs. They will never be personally responsible for repaying the loan—even if the loan balance becomes higher than the home’s value.
When the loan becomes due, your heirs have clear options:
- Keep the home by repaying the loan balance.
- Sell the home and use the proceeds to repay the loan.
If the home sells for more than what’s owed, the extra funds go directly to your family or estate. If it sells for less, your heirs won't owe anything additional. This structure ensures your loved ones are protected no matter what happens to home values over time.
Have Questions About Reverse Mortgages? Talk to an Expert
Frequently Asked Questions About Home Ownership and Reverse Mortgages
Below are clear answers to the most common questions homeowners ask about reverse mortgage ownership.
1. Does the lender take ownership of my home when I get a reverse mortgage?
No. You remain the legal owner of your home, and your name stays on the title—not the lender’s.
2. Can I still sell my home if I have a reverse mortgage?
Yes, you can sell your home at any time. When you sell, the loan balance is repaid from the sale proceeds.
3. What happens to the reverse mortgage if I move to assisted living or a nursing home?
If you move out permanently, the loan becomes due, typically requiring repayment through the sale of your home.
4. Are my heirs responsible for paying off my reverse mortgage?
Your heirs are never personally responsible for the debt. They can repay the loan or sell the home to settle the balance.
5. Will my heirs inherit any money from the sale of my home after a reverse mortgage?
Yes. If the home sells for more than what is owed, the remaining funds go directly to your heirs or estate.
6. Can the lender force me out of my home if the balance exceeds the home’s value?
No, as long as you maintain the home, pay taxes, and insurance, you can live there regardless of loan balance.
7. Who pays property taxes and insurance if I have a reverse mortgage?
You do. Homeowners must continue paying property taxes and homeowner’s insurance as part of the agreement.
8. If the reverse mortgage balance exceeds my home’s value, do my heirs owe the difference?
No, a reverse mortgage is a non-recourse loan, meaning heirs are not responsible for any shortfall.
9. Do I need permission from the lender to renovate my home if I have a reverse mortgage?
No permission is typically needed for routine improvements or renovations, as long as you maintain the home's overall value.
10. Can I rent out my home or part of it if I have a reverse mortgage?
Generally, no. The home must remain your primary residence, and renting it out usually violates loan terms.
Have Questions About Reverse Mortgages? Talk to an Expert
Knowing Your Options
A reverse mortgage lets you keep owning your home while giving you extra money to use in retirement. You stay in control, so you don’t have to worry about losing your home.
Before deciding, think about your goals, your money needs, and if a reverse mortgage is the best choice for your future.
When you understand how a reverse mortgage works, you can decide if using your home’s value is the right way to help with your retirement—so you can enjoy the home you’ve worked hard for.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
