Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

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What to Know if You Are Moving out of Your Home with a Reverse Mortgage
Retirement Tips, Reverse Mortgage Facts

What to Know if You Are Moving out of Your Home with a Reverse Mortgage

What to Know if You Are Moving out of Your Home with a Reverse Mortgage

When homeowners and homebuyers age 62 and older take out a reverse mortgage loan — a home-secured loan that allows borrowers to leverage their built-up equity — most intend to stay in their home for the long haul. But life happens and circumstances may change, causing the reverse mortgage loan holder to move out earlier than planned. What does that mean for you, your spouse, and your heirs? Can you move out if you have a reverse mortgage?

Assuming the home is not sold and loan obligations are otherwise met, no longer living in the home as your primary residence for a year or more can trigger a reverse mortgage loan to become due and payable. So, if you relocate to live with family or move to a long-term care facility, you’ll likely receive a notice. But what if you spend three months in a rehabilitation facility recovering from illness or surgery? Here’s how some different scenarios may play out if a move is imminent and better explains reverse mortgage residency requirements.

#1 You and your spouse are co-borrowers.

If you and your spouse are both co-signers on the loan, and one of you must move into a nursing home for full-time care, the other borrower may continue to own and live in the home — and enjoy all the benefits of the reverse mortgage. For co-borrowers on a reverse mortgage, the mortgage is not due and payable until both parties move out or pass away. As with any home-secured loan, the borrower must continue to meet the loan obligations and keep current with property taxes, insurance, and maintenance.

#2 You’re the sole borrower.

If you and your spouse are not co-borrowers, and, for example, the reverse mortgage borrower moves out for longer than 12 months, the loan will be become due and payable. This means your spouse, partner or any family members living in the home must vacate. The most common solution is to sell the home in order to pay back the balance of the loan. It’s important to note that reverse mortgage loans insured by the FHA* are nonrecourse. That means if the loan obligation is greater than your home’s value at the time of sale, you or your heirs are only required to pay 95% of its current appraised value. 

#3 You’re only moving out temporarily.

Remember, unless you fail to utilize the home as a primary residence for a period of 12 consecutive months or longer (and otherwise meet your loan obligations), you are typically not in danger of violating the terms of your loan. However, you should always consult your loan documents.

Before signing a reverse mortgage contract, borrowers should thoroughly familiarize themselves with all the possible outcomes and know of all reverse mortgage restrictions. By knowing what may come, you can devise a contingency plan, so there are no surprises.

Get a move on — with a reverse mortgage loan

If you’re age 62 or older and planning to stay in your home for the foreseeable future, a reverse mortgage loan can be a smart way to increase your funds and provide you with financial security during retirement. This type of loan works by giving you access to the equity you’ve already built up in your home in the form of a lump-sum payment, a monthly payment or a line of credit that’s there when you need it.

To learn more, reach out to Reverse Mortgage Funding, LLC (RMF) at (888) 277-1567. We’ll schedule a convenient, in-person appointment with a loan specialist in your area.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.7-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.


If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.

Check Eligibility

*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.

Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.



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A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

Equity Elite Reverse Mortgage

Put Your Home Equity to Work for You

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By clicking "CALCULATE", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged and are representing that you are the regular user of provided number. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-1567 to complete your request. You understand that you can revoke this consent at any time.

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