5 Common Reverse Mortgage Myths
Myth #1: If I take out a Reverse Mortgage Loan, the lender will own my home.
Fact: Like any other mortgage, the homeowner still retains title and ownership during the life of the loan.
Myth #2: My children will be responsible for paying off the loan.
Fact: When the house is sold, there will be no mortgage debt for the family and heirs to pay.
Myth #3: If I outlive my life expectancy, the lender will evict me.
Fact: There is no time limit on how long seniors can stay in their homes.
Myth #4: There are restrictions on how I can use the proceeds.
Fact: The cash proceeds from a reverse mortgage can be used for any purpose.
Myth #5: If the market crashes and my home loses its value, I (or my heirs) will owe the difference.
Fact: A Reverse Mortgage is considered a non-recourse loan, insured by the FHA. This means in the rare occurrence that a home is "under water", the bank will absorb the debt, not you or your heirs.