You will be required to repay the money you borrowed plus interest and fees if you choose to sell your home while you have a reverse mortgage loan.
Note that only Home Equity Conversion Mortgages (HECMs), the most prevalent form of reverse mortgage loan, are covered by this information.
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FAQ
Can you sell your house with a reverse mortgage on it?
You will be required to repay the money you borrowed plus interest and fees if you choose to sell your home while you have a reverse mortgage loan. You keep the difference if your loan balance is less than what your house sells for.
How long do you have to sell a house with a reverse mortgage?
You may, however, have up to six months to repay the reverse mortgage loan, depending on the lender and the loan’s terms. Kennedy explains that “the estate has six months to sell the property, with two optional three-month extensions.”
Do I have to pay capital gains if I sell while having a reverse mortgage?
If I sell while I have a reverse mortgage, do I have to pay capital gains taxes? You’ll only have to pay capital gains taxes on a reverse mortgage sale if you make at least $250,000 if you’re single (or $500,000 if you’re married) in profit.
Who owns the house at the end of a reverse mortgage?
No. The title to your home remains in your possession after you take out a reverse mortgage loan. Most reverse mortgages are Home Equity Conversion Mortgages (HECMs).