Q: How can I qualify for a reverse mortgage?

A: Unlike a conventional forward mortgage, there are no credit or income requirements for a reverse mortgage. To qualify for a reverse mortgage you must own your home and be at least 62 years of age. Your existing mortgage does not have to be completely paid off, but you should have significant equity in your home. Single-family homes, townhouses and condominiums are eligible. Manufactured and mobile homes that meet certain government standards may also be eligible.

Q: Will a reverse mortgage affect my government benefits?

A: No. Social Security and Medicare benefits are not affected. Supplemental Security Income (SSI) and Medicaid are not affected either, as long as all monthly cash advances are fully spent each month.

Q: Will I still own my home?

A: Yes. You will retain title and may sell you home at any time if you choose. Your reverse mortgage remains active as long as you continue to live in your home, keep up repairs and pay taxes and insurance. Live Well Financial can set aside proceeds from your reverse mortgage to ensure that property taxes and homeowner's insurance are paid. We can even help set aside cash for future home repairs.

Q: What are the fees involved in obtaining a reverse mortgage?

A: Similar to a traditional mortgage, there are appraisal fees, origination fees, mortgage insurance, title insurance and servicing fees. Most consumers choose to deduct these fees from the reverse mortgage proceeds so there are no upfront, out-of pocket expenses.

Q: How long does the application process take?

A: Loan processing generally takes anywhere from 30 to 60 days, depending upon how quickly steps in the process are completed.

Q: How are interest rates determined?

A: All home equity conversion loans carry an adjustable interest rate (ARM.) Your interest rate will vary depending on the specific product you select. Interest rates on most reverse mortgage products are based on the current rate of the one-year Treasury bill or one-month certificate of deposit. Loans with a monthly adjustable rate are guaranteed to never go up more than 10 percent over the life of the loan. Those with an annual, adjustable rate can only go by 2 percent a year, or 5 percent over the life of the loan.

Q: When do I have to pay back my loan?

A: A reverse mortgage does not have to be paid back until the borrower sells the home, moves out permanently or dies. Heirs have six months to sell the home and pay back the loan, or refinance if they decide to keep the property. HUD may allow an additional six months for pay back under certain circumstances.