Can I rent my reverse mortgage home? Can I go into a nursing home and still receive reverse mortgage payments? Can I move and have a reverse mortgage?
If you have a reverse mortgage on your home you cannot rent the home out to another person. Any type of reverse mortgage federally insured or not, specifically requires that a person receiving payments from a reverse mortgage must live in that residence full time. Reverse mortgages are not for second homes or vacation properties. These types of loans were designed to only be used on the primary residence of the borrower. If at any time you leave full residence of the home the reverse mortgage becomes due and payable.
Can I go into a nursing home and still receive reverse mortgage payments?
If you enter a nursing home for recovery you can still receive reverse mortgage payments if you are not there for an extended stay. Extended stay is considered any amount of time that exceeds a 12 month period. But, verify this information with your particular lender since many lenders have a shorter stay requirement. If you are permanently moving into a nursing home you will no longer qualify for reverse mortgage benefits and the loan will be due immediately.
Can I move and have a reverse mortgage?
A reverse mortgage is only for the primary residence of the borrower. If at any time during the course of the loan you move your primary residence from that property the loan becomes payable. If you need to move into a smaller home or nursing facility the lender will sell your property to recover the loan amount and any monies due to them they will collect. At no time during the loan period can you have more than one residence as your main residence.
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