Part 2 in our popular frequently asked questions series is below. More to come!
Q: Is a reverse mortgage taxable?
No. The proceeds of a reverse mortgage do not count as income and are not taxable accordingly. Furthermore, the interest on a reverse mortgage is tax deductible when it is paid. However, the borrower must still pay taxes on the property.
Q: How long must I live in my home before I can get a reverse mortgage?
There is generally no requirement for how long the borrower must live in their home, as long as it is their primary residence. A reverse mortgage can also be used to purchase a new home using the HECM for Purchase program.
Q: Can I refinance a reverse mortgage?
Yes. A reverse mortgage can either be refinanced as a reverse mortgage or a forward mortgage. There is no limitation on the amount of times you can refinance.