Reverse Mortgage Myths

We lose title to our home.
False. You continue to own your home. Just as with any mortgage, you can sell your home or pay off your reverse mortgage at any time.

A Reverse Mortgage is not safe.
False. Since there are no payments to make, you cannot fall behind in your payments. FHA insurance guarantees that the monthly income is for life. Consumer protections include counseling by AARP or an FHA approved counseling agency. FHA also limits the fees that can be charged.

Reverse Mortgage lenders charge excessive referral fees and back end fees.
False. FHA strictly limits Reverse Mortgage fees.

We need good income and credit to qualify.
False. There are no income or credit requirements or limitations. Any homeowner age 62 or over can qualify.

Our heirs will be saddled with debt.
False. A reverse mortgage is a non-recourse loan. You will never owe more than the loan balance or value of the property, whichever is less. So no debt can pass to your heirs.

Reverse Mortgages are only for borrowers with limited income.
False. Reverse Mortgages are often used to provide additional income to homeowners with limited income, but are can also provide cash for a vacation, a visit to the grandchildren or that new boat and can also be an important part of an estate or financial plan.