Straight answers to the questions Kansas and Missouri homeowners ask most.
Do I still own my home?
Yes. You keep the title. The lender places a lien on the home, the same way a regular mortgage does.
Do I have to make monthly payments?
There is no required monthly mortgage payment. You can make payments if you want to. You do still pay property taxes, homeowners insurance, HOA dues if any, and upkeep.
Can I lose my home?
The loan can come due if you stop paying property taxes or insurance, let the home fall into serious disrepair, or move out for more than 12 months in a row. Staying on top of those obligations is what keeps the loan in good standing.
What if I still have a mortgage?
That is common. The reverse mortgage pays off your existing mortgage first, which removes that monthly payment. You need enough equity for that to work.
Is the money taxable?
Loan proceeds are generally not treated as income. Check with your tax advisor about your own situation and any effect on need-based benefits.
Will it affect Social Security or Medicare?
Generally no, because those are not based on income or assets. Need-based programs like Medicaid or SSI can be affected by how and when you use the funds, so ask before you decide.
What does a reverse mortgage cost?
Costs typically include an FHA mortgage insurance premium, an origination fee, appraisal, title and other closing costs. Most can be paid from the loan proceeds. You will get a full written estimate before you commit.
Why do reverse mortgages have a bad reputation?
Older loans had fewer protections, and some people did not understand their obligations. Today’s HECMs require independent counseling, a financial review and protections for eligible non-borrowing spouses.
How long does it take?
Often 30 to 45 days from application to closing, depending on counseling, the appraisal and paperwork.
Do you work outside Kansas City?
Yes. Steve is licensed in all of Kansas and Missouri, and most of the process can be done by phone and email.
Still have a question? Call or text and ask.
Talk to a real person in Kansas City
Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.