To keep their loans in good standing, reverse mortgage borrowers agree to the following terms:
- Live in the home as the primary residence. Borrowers must live in and use the property as their main home. Your primary residence is the place where you live permanently and spend the majority of the calendar year.
- Maintain the property. Borrowers are required to keep their homes in good condition and make any necessary repairs for the life of the loan.
- Payment obligations. Though reverse mortgage borrowers do not make mortgage payments, they must continue to pay their property taxes, homeowners’ insurance, and any additional fees and dues related to their homeownership, like HOA dues.
Other requirements may also apply.
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For tax advice, please consult a tax professional. For more information about whether a reverse mortgage fits into your retirement strategy, you should consult your financial advisor.
