Can Heirs Keep the Home?

Yes, your heirs can inherit and keep the home after you pass away. Because a reverse mortgage is a non-recourse loan, your heirs will never owe more than the loan balance or 95% of the home's appraised value, whichever is less.

Options for Heirs

1. Refinance the Loan: If they wish to keep the home, they can pay off the reverse mortgage balance (typically by refinancing into a traditional mortgage).
2. Sell the Home: They can sell the home, pay off the loan, and keep any remaining equity.
3. Deed in Lieu of Foreclosure: If the loan balance exceeds the home's value, they can simply walk away and hand the keys back to the lender, with no debt passing to the estate.

A reverse mortgage is a loan secured by the home. Borrowers remain responsible for taxes, insurance, property maintenance, and complying with loan terms.