To qualify for a reverse mortgage, you must live in the home as your primary residence and keep paying property taxes and insurance. If you're absent for more than 12 consecutive months, the loan becomes due. It's not assumable like a traditional mortgage, so it only works if you plan to stay.
Well, on a reverse mortgage, you still have to make your property taxes, you pay your, your property taxes, your homeowner's insurance, and you live in your home as your primary residence. That's a maturity event. So if you leave your home permanently, then you can have your reverse mortgage called due on you. And on a traditional loan, that's not typically happening. Traditional financing, you know, those loans are typically assumable. So even if you're no longer alive, somebody can assume that mortgage and continue to make that mortgage payment. Where a reverse mortgage, we're looking at the borrower living in the home. So if you have left that house permanently, and that's defined by leaving for a period longer than 12 consecutive months, then a reverse mortgage is not the right loan for you, and that loan can be called due and payable. So the main difference is these are for owner-occupied, living in the home.
