reverse mortgage basics

How Home Ownership Works

There are different kinds of reverse mortgages, but they all have some things in common, such as how they deal with home ownership. Under a reverse mortgage, who is the home owner?

1. The loan provider becomes the home owner and is responsible for keeping your home and property well maintained.
2. You retain home ownership and must keep your home in proper repair.
3. You and the lender are co-owners and are equally responsible for all repair and maintenance costs.

“B” is correct. You are still the home owner on a reverse mortgage just like when you had a “forward” mortgage. As the home owner, you’re responsible for making all necessary home repairs and for paying homeowner’s insurance and property taxes.