Reverse Mortgage Myth #1: I've heard I won't qualify for a reverse mortgage because of my limited income. Fact: False. Most traditional mortgages require income qualifications and have a monthly payment. Although the HECM (Home Equity Conversion Mortgage) reverse mortgage does require a financial assessment to insure that the senior can pay their property taxes, home owners insurance and normal, daily expenses, it is easier to qualify for and there are no monthly payments. Many seniors who don’t qualify for traditional mortgages are eligible for a reverse mortgage.

Myth #3: There are restrictions on how reverse mortgage proceeds may be used. Fact: False There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose. In fact, Borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve. 

Reverse Mortgage Myth #2: If I take out a reverse mortgage the lender will own my home. Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due