Many homeowners wonder if selling a house with a reverse mortgage is possible. The answer is yes, but the process differs slightly from selling a home with a traditional mortgage. Whether due to lifestyle changes, financial needs, or simply wanting a fresh start, selling a home with this type of loan requires some planning and understanding.

How Does a Reverse Mortgage Work When Selling?

A reverse mortgage lets homeowners access home equity while living in their property without making monthly payments. However, if you decide to sell the home, the mortgage balance becomes due. Here’s what you need to know:

• Proceeds from the sale: The sale proceeds must first go toward paying off the mortgage balance, including interest and fees. Any remaining amount belongs to you.
• Non-recourse protection: If the home’s value has declined and the sale doesn’t cover the full loan amount, the lender absorbs the loss, and you or your heirs won’t owe more than the home’s value at the time of sale.

Read More Selling a House with a Reverse Mortgage: What You Need to Know