REVERSE MORTGAGE MYTHS
- You immediately sign over ownership to your home
- It’s only for broke people
- It’s free money
REVERSE MORTGAGE FACTS
- You retain title to your home as long as you meet the loan guidelines & requirements such as: maintaining the property, paying all property charges such as property taxes, homeowners insurance, flood insurance, and homeowners association dues (if applicable), and avoiding extended absences from the home longer than six months.* Health related property absences can be for up to 12 consecutive months.
- Many retirees use a reverse mortgage.
- It’s a specialized loan. However, program rates, fees, terms, and conditions are not available in all states and are subject to change.
- Failure to comply with the loan terms could result in a foreclosure.*
- Reverse mortgages that are FHA-insured (Home Equity Conversion Mortgages) are insured by the Federal Housing Administration providing protection for both borrowers and lenders.
* There are some circumstances that will cause the loan to mature and the balance to become due and payable.* The borrower is still responsible for paying property taxes, homeowner’s insurance (as with any home loan) and maintaining the property to HUD standards. Failure to do so could make the loan due and payable.* Credit is subject to age, income standards, credit history, property qualifications and prevailing interest rates.* Program rates, fees, terms, and conditions are not available in all states and subject to change.
Not all reverse mortgages are created equal. Old information and articles on the internet published prior to 2016 are based on older reverse mortgage versions, rules and guidelines. It’s important that you know when the information was published in order to know if the information you are hearing or reading applies to new reverse mortgages that are currently available. Even though the older rules and guidelines still apply to the older loans, it’s important to note any loans going forward are effective with the upgraded rules and guidelines.
If you have any questions about an article you have read or information you have heard that concern you about reverse mortgages, please let me know below and I will let you know if the information is accurate, I’m here to help.
Best,
KW