Yes — a reverse mortgage does not erase property taxes or homeowners insurance. Ryan and Steve help you budget those charges (and any LESA set-aside) so occupancy stays secure while you live in the home.
A HECM reverse mortgage typically waives required monthly principal-and-interest payments while you occupy the home as your primary residence. That does not mean housing costs disappear. FHA and your loan documents require you to keep property taxes, hazard insurance, flood insurance when applicable, and HOA or condo dues current.
Unpaid property charges are one of the most common reasons reverse mortgages go into default. Servicers monitor tax and insurance status. If charges fall behind and are not cured, the lender can advance funds, demand repayment, or ultimately foreclose — even when you still live in the home.
During underwriting, the financial assessment reviews whether your residual income can cover these ongoing costs. If the numbers are tight, a life-expectancy set-aside (LESA) may be required so taxes and insurance are paid from loan proceeds over time.
Several paths keep property charges current — choose the structure that fits your cash flow.
How The 2 Mortgage Guys at Luminate Bank typically walk through tax and insurance readiness.
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Related guides on reverse mortgage obligations and protections.
What you still pay when P&I is not required.
Why unpaid taxes and insurance are the top default risks.
HUD counseling covers property-charge responsibilities.
Ask Ryan & Steve about LESAs and property-charge budgeting.
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Ryan & Steve can review your property charges and LESA options — not a commitment to lend; subject to credit and property approval.