Form 1009 - Reverse Mortgages-2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin with Section I, where you will select the type of mortgage. Check the appropriate box for FHA HECM Traditional, Refinance, Purchase, or specify another type.
  3. Enter the FHA Case Number if applicable and choose your loan payment plan from options like Line of Credit or Tenure.
  4. In Section II, provide the primary residence property information including address, legal description, and titleholder names.
  5. Complete Section III by entering borrower and co-borrower details such as names, Social Security Numbers, and monthly incomes.
  6. List any liens against the property in Section IV. Include creditor names and unpaid balances.
  7. Fill out Section VI with declarations regarding any outstanding judgments or bankruptcies.
  8. Finally, review and sign in Section VII to acknowledge that all information is accurate before submitting your application.

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Selling a home after having a reverse mortgage doesnt change the standard capital gains tax rules. If youve lived in your home for at least two of the last five years before selling, you may qualify for a capital gains tax exclusion, up to $250,000 for individuals or $500,000 for married couples filing jointly.
No, reverse mortgage payments arent taxable. Reverse mortgage payments are considered loan proceeds and not income. The lender pays you, the borrower, loan proceeds (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home.
A reverse mortgage increases your debt and can use up your equity. While the amount is based on your equity, youre still borrowing the money and paying the lender a fee and interest. Your debt keeps going up (and your equity keeps going down) because interest is added to your balance every month.
(Home Equity Conversion Mortgage, or HECM), the lender has the option. of using the Residential Loan Application for Reverse Mortgage (Fannie. Mae Form 1009) or the Uniform Residential Loan Application (Freddie. Mac Form 65/Fannie Mae Form 1003). For both forms, if the mortgage applied for is a HECM, the HUD/VA.
Because reverse mortgages are considered loan advances and not income, the amount you receive isnt taxable. Any interest (including original issue discount) accrued on a reverse mortgage is considered interest on home equity debt and isnt deductible.

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