Reverse Mortgage FAQs — In Good Hands Mortgage

Question 1

Who qualifies for a reverse mortgage?

Accepted Answer

To qualify for a HECM (Home Equity Conversion Mortgage) reverse mortgage, you must be at least 62 years old, own your home outright or have a low remaining mortgage balance, live in the home as your primary residence, and complete a brief session with a HUD-approved housing counselor. The home must also meet FHA minimum property standards.

Question 2

What types of homes are eligible?

Accepted Answer

Single-family homes, FHA-approved condominiums, townhouses, and manufactured homes built after June 1976 that meet FHA requirements are all eligible. The property must be your primary residence — vacation homes and investment properties do not qualify.

Question 3

Does my credit score affect my eligibility?

Accepted Answer

Unlike traditional mortgages, a reverse mortgage does not have a minimum credit score requirement. However, lenders do perform a financial assessment to ensure you can continue to pay property taxes, homeowner's insurance, and maintenance costs. A history of late payments may require a Life Expectancy Set-Aside (LESA) to cover these expenses.

Question 4

Can I get a reverse mortgage if I still have a mortgage balance?

Accepted Answer

Yes. Many borrowers use the reverse mortgage proceeds to pay off their existing mortgage first. As long as the reverse mortgage loan amount is sufficient to cover the remaining balance, you can still qualify. Eliminating the monthly mortgage payment is one of the most common reasons homeowners choose a reverse mortgage.

Question 5

What happens if I have a spouse who is under 62?

Accepted Answer

A non-borrowing spouse under 62 can still be protected under current HUD guidelines. While they cannot be listed as a borrower, they may qualify as an eligible non-borrowing spouse, which allows them to remain in the home after the borrowing spouse passes away or moves to a care facility — as long as certain conditions are met.

Question 6

What loan programs does In Good Hands Mortgage offer?

Accepted Answer

We offer a full suite of mortgage solutions including HECM reverse mortgages, DSCR loans for investors, FHA and VA loans, construction loans, bank statement loans for self-employed borrowers, foreign national loans, conventional loans, and fix-and-flip loans. We work with 265+ lenders across 13 states to find the best fit for your situation.

Question 7

What is a DSCR loan and who is it for?

Accepted Answer

A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors. Instead of qualifying based on personal income, the loan is approved based on the rental income the property generates relative to its debt obligations. It's ideal for investors who want to grow a portfolio without the documentation burden of traditional income verification.

Question 8

What is a bank statement loan?

Accepted Answer

A bank statement loan is designed for self-employed borrowers who may not show sufficient income on tax returns. Instead of W-2s or pay stubs, lenders use 12 to 24 months of personal or business bank statements to verify income. This makes it a popular option for business owners, freelancers, and contractors.

Question 9

Do you offer VA loans for veterans?

Accepted Answer

Yes. We offer VA loans for eligible veterans, active-duty service members, and surviving spouses. VA loans typically require no down payment, no private mortgage insurance (PMI), and offer competitive interest rates. We also offer FHA loans for borrowers who prefer a low down payment option with more flexible credit requirements.

Question 10

What states do you serve?

Accepted Answer

We are licensed to serve homeowners in 13 states. Our primary market is Tennessee, and we also serve clients across the Southeast and beyond. Contact us to confirm availability in your state.

Question 11

How do I get started with a reverse mortgage?

Accepted Answer

The first step is a no-obligation consultation with Michele. She will review your home value, age, and current mortgage balance to estimate how much you may qualify for. If you decide to move forward, you'll complete a HUD-approved counseling session, submit your application, and Michele will guide you through every step from appraisal to closing.

Question 12

How long does the reverse mortgage process take?

Accepted Answer

The typical reverse mortgage process takes 30 to 60 days from application to closing. The timeline depends on how quickly the required HUD counseling is completed, the appraisal schedule, and the lender's processing time. Michele works to keep things moving as efficiently as possible.

Question 13

What documents will I need to provide?

Accepted Answer

You will generally need a government-issued photo ID, proof of homeowner's insurance, recent mortgage statement (if applicable), property tax records, and proof of income or assets for the financial assessment. Michele will provide a complete checklist tailored to your specific loan program.

Question 14

Is there a cost for the initial consultation?

Accepted Answer

No. Your initial consultation with Michele is completely free and carries no obligation. She will answer your questions, explain your options, and help you decide whether a reverse mortgage or another loan program is the right fit for your goals.

Question 15

Can I apply online?

Accepted Answer

Yes. You can start your application online at our Apply page. You can also call or email Michele directly if you prefer to begin the conversation by phone or in person.

Question 16

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You retain full ownership of your home throughout the life of the reverse mortgage. The lender places a lien on the property — just as with a traditional mortgage — but you remain the owner. You are responsible for paying property taxes, homeowner's insurance, and maintaining the home.

Question 17

When does a reverse mortgage become due?

Accepted Answer

The loan becomes due when the last borrower permanently leaves the home — whether due to passing away, selling the property, or moving to a care facility for 12 or more consecutive months. At that point, the loan balance (principal plus accrued interest) must be repaid, typically through the sale of the home.

Question 18

Can I lose my home with a reverse mortgage?

Accepted Answer

A reverse mortgage can go into default if you fail to pay property taxes, homeowner's insurance, or allow the home to fall into disrepair. As long as you meet these obligations and continue to live in the home as your primary residence, you cannot be forced out.

Question 19

How are reverse mortgage proceeds paid out?

Accepted Answer

You can receive your proceeds as a lump sum, a line of credit, fixed monthly payments (tenure or term), or a combination of these options. The line of credit option is particularly popular because any unused portion grows over time, giving you access to more funds in the future.

Question 20

Are reverse mortgage proceeds taxable?

Accepted Answer

No. Reverse mortgage proceeds are considered loan advances, not income, so they are not subject to federal income tax. However, tax laws can change and individual circumstances vary — we always recommend consulting a tax advisor for guidance specific to your situation.

Question 21

What is Michele's NMLS number?

Accepted Answer

Michele L. Albohn's individual NMLS number is #1989021. In Good Hands Mortgage operates under Coast 2 Coast Mortgage, Company NMLS #376205. You can verify these credentials at nmlsconsumeraccess.org.

Frequently Asked Questions

Reverse Mortgage Eligibility

Loan Programs

Application Process

General Questions

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