Are Taxes and Insurance Required? | The 2 Mortgage Guys

Yes — reverse mortgage borrowers must keep taxes and insurance current. Learn LESAs, default risks, and how to budget property charges.

Are Taxes and Insurance Required? | The 2 Mortgage Guys

Yes — reverse mortgage borrowers must keep taxes and insurance current. Learn LESAs, default risks, and how to budget property charges.

Are Taxes and Insurance Required?

Property Charges Still Apply

At a Glance

How Borrowers Cover Taxes and Insurance

Planning Property Charges With Ryan & Steve

Keep Exploring

Frequently Asked Questions

Want Help Budgeting Taxes and Insurance?

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.

Step

Related guides on reverse mortgage obligations and protections.

2MG Daily

Recent articles on reverse mortgages, home equity, and retirement financing.

No related blog posts yet. Check back soon for the latest updates.

Ryan & Steve can review your property charges and LESA options — not a commitment to lend; subject to credit and property approval.

window.open('https: Reverse Overview Property Charges Still Apply 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. At a Glance How Borrowers Cover Taxes and Insurance Several paths keep property charges current — choose the structure that fits your cash flow. Planning Property Charges With Ryan & Steve How The 2 Mortgage Guys at Luminate Bank typically walk through tax and insurance readiness. Keep Exploring Related guides on reverse mortgage obligations and protections. 2MG Daily Related Blog Posts Recent articles on reverse mortgages, home equity, and retirement financing. {blogLoading ? ( ) : blogError ? ( Try Again
navigate('/blog')} className="px-5 py-2.5 rounded-xl text-[#020617] text-sm font-semibold transition-all active:scale-[0.98]" style= >Visit Our Blog
navigate('/blog')} className="px-6 py-3 rounded-xl text-[#020617] text-sm font-semibold transition-all hover:shadow-[0_0_20px_rgba(30,205,241,0.25)] active:scale-[0.98]" style= >View All Posts
setOpenFaq(openFaq === i ? null : i)} className="w-full flex items-center justify-between gap-4 px-5 py-4 text-left transition-all active:scale-[0.99]">

} onBlur= >Skip to main content
} className="hover:text-[#1ecdf1] transition-colors">Home
} className="hover:text-[#1ecdf1] transition-colors">Reverse Mortgages
} className="px-8 py-4 rounded-xl text-sm font-semibold border border-[#1e293b] text-[#e2e8f0] transition-all duration-200 hover:bg-white/[0.05] active:scale-[0.98]">Reverse Overview
} className="group rounded-2xl border border-[#1e293b] bg-[#0f172a] p-6 transition-all duration-200 hover:border-[#1ecdf1]/40 hover:-translate-y-1 active:scale-[0.98]">
} className="px-8 py-4 rounded-xl text-sm font-semibold border border-[#1e293b] text-[#e2e8f0] transition-all duration-200 hover:bg-white/[0.05] active:scale-[0.98]">Contact Us
(765) 450-8933
} className="w-full sm:w-auto inline-flex items-center justify-center gap-2 px-5 py-3 rounded-lg text-sm font-bold transition-all active:scale-[0.98]" style= > Get Started