Reverse Mortgage: Your Rights and Responsibilities

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We understand the importance of ensuring that you have a complete understanding of your rights and responsibilities when it comes to reverse mortgages. We are here to guide you through the process and provide you with valuable information to help you make informed decisions. In this article, we will delve into the intricacies of reverse mortgages, shedding light on the key aspects that you need to know.

Understanding Reverse Mortgages

A reverse mortgage is a financial tool that allows homeowners who are 62 years or older to convert a portion of their home equity into cash. Unlike traditional mortgages, where you make monthly payments to the lender, with a reverse mortgage, the lender makes payments to you. This can be an attractive option for seniors who are looking to supplement their retirement income or cover unexpected expenses.

Your Rights as a Reverse Mortgage Borrower

As a reverse mortgage borrower, you have certain rights that are crucial to understand. These rights include:

Non-recourse Protection

One important right is non-recourse protection, which ensures that you will never owe more than the appraised value of your home when the loan becomes due. This means that if the loan balance exceeds the value of your home, the lender cannot seek additional payment from you or your heirs.

Right to Receive Loan Proceeds

Another essential right is the right to receive loan proceeds. Once you meet the eligibility criteria and the loan is approved, you have the right to receive the loan funds in the form of a lump sum, monthly payments, a line of credit, or a combination of these options.

Right to Stay in Your Home

With a reverse mortgage, you have the right to stay in your home as long as it remains your primary residence. You will not be forced to move out, even if the loan balance exceeds the value of your home. This provides you with peace of mind and stability.

Counseling Requirement

To protect your interests, reverse mortgage borrowers must receive counseling from a HUD-approved counselor. This counseling session aims to ensure that you fully understand the terms and conditions of the reverse mortgage and make an informed decision.

Responsibilities as a Reverse Mortgage Borrower

Alongside your rights, it is important to be aware of your responsibilities as a reverse mortgage borrower. These responsibilities include:

Loan Repayment

While you are not required to make monthly mortgage payments with a reverse mortgage, you are responsible for paying property taxes, homeowners insurance, and maintenance costs. Failing to meet these obligations could result in defaulting on the loan.

Occupancy Requirement

To maintain the reverse mortgage, you must continue to live in the mortgaged property as your primary residence. If you move out for more than 12 consecutive months, the loan may become due, and you may need to repay the loan.

Loan Counseling

You are responsible for participating in the mandatory loan counseling session with a HUD-approved counselor. This counseling session will equip you with the necessary knowledge and understanding to make informed decisions regarding the reverse mortgage.


In conclusion, understanding your rights and responsibilities as a reverse mortgage borrower is crucial to make the most of this financial tool. We strive to provide you with the necessary information and guidance to ensure that you are well-informed throughout the process. By being aware of your rights and fulfilling your responsibilities, you can confidently navigate the world of reverse mortgages and make decisions that align with your financial goals.


  • Reverse mortgages allow homeowners aged 62 or older to convert home equity into cash.
  • Rights include non-recourse protection, receiving loan proceeds, staying in your home, and mandatory counseling.
  • Responsibilities include loan repayment, meeting occupancy requirements, and participating in loan counseling.

Useful Links:

  1. Consumer Financial Protection Bureau: Reverse Mortgages
  2. National Council on Aging: Reverse Mortgage Education
  3. U.S. Department of Housing and Urban Development: Reverse Mortgages

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