When you have a reverse mortgage you do not have to restrict the number of people living in your home. The reverse mortgage is only concerned with the living arrangements of the mortgage holder(s). If family members are staying in the home they should be notified that if you move or pass away they will be required to vacate the property unless they purchase the home from the reverse mortgage company. The reverse mortgage provider will assume ownership of the home once you die or move to another location.
Are There Requirements As To How Many People Can Live In A Home With A Reverse Mortgage On It?
The only residency requirements that are attached to a reverse mortgage is the mortgage holder. The person that is receiving the payments on the home must reside full time in that home. If, for any reason, the mortgage holder no longer resides in the home the loan will become due. There are no restrictions in regard to family or friends sharing the residence. If the mortgage holder moves or dies however, any additional residents will be required to move out of the home unless they purchase it from the lender.
Will Having Family Members Live With Me Affect My Reverse Mortgage Payments?
Your reverse mortgage payment amounts are not determined by the number of people living in the home. The amount you receive will be based on your age and the amount of equity available in the home. These are the two determining factors. Many other senior programs may consider additional family members and their income, but the reverse mortgage program is strictly based on home equity and patrons age. These rules do not apply to the spouse if they are listed on the reverse mortgage contract.
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