General Mortgage Knowledge · 20% of the SAFE exammedium
Correct answer: Pay property taxes, homeowner's insurance, and maintain the home
HECM borrowers are not required to make monthly mortgage payments, but they must continue to pay property taxes, homeowner's insurance, HOA fees if applicable, and maintain the property in good condition. Failure to meet these obligations can trigger a default and foreclosure. Monthly principal and interest payments are not required under a HECM — this is a defining characteristic of reverse mortgages. The 30-year repayment and 20% equity maintenance requirements do not exist under the HECM program.
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