Protecting Your Heirs

One of the biggest questions: What happens to my family?

Non-Recourse Protection

You never owe more than the home is worth. If the loan balance exceeds the home value, FHA insurance covers the difference.

How Payoff Works

• Heirs can keep the home by paying off the loan
• OR sell the home — lender gets loan balance, heirs keep remainder
• OR deed home to lender (deed-in-lieu) — no deficiency

Selling vs. Refinancing

• Heirs can sell to pay off loan
• Can also refinance into traditional loan if they qualify
• Estate can negotiate short sale if underwater

Time to Decide

Heirs typically have 12 months after death to decide.

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.