Reverse Mortgage Myths vs. Facts

a check mark and a cross mark   MYTH
chekcmark   FACT

a check mark and a cross mark The lender owns the home.
check mark - resized The homeowner retains full title and ownership.

 


a check mark and a cross mark The home must be owned free and clear.
check mark - resized The lender will pay off any existing liens with the HECM proceeds at closing.

 


a check mark and a cross mark Heirs may have to pay off more than the home is worth.
check mark - resized The reverse mortgage is a non-recourse loan. If the loan balance is higher than the home value at the time the home is sold, the FHS covers the difference.

 


a check mark and a cross mark Heirs are responsible for the repayment of the loan.
check mark - resized Heirs have the opportunity to keep or sell the home!

 


a check mark and a cross mark Only low income seniors get reverse mortgages.
check mark - resized Seniors from all different income levels can benefit from a reverse mortgage.

 

Now you know the Facts!