Top Five Reverse Mortgage Myths Dispelled

Well, your questions have been flooding in about the most common myths regarding reverse mortgages. Let’s take this time to address some of the misconceptions we hear most frequently at the Reverse Mortgage Helpdesk.

Some of you have been told you qualify for a reverse mortgage and, after investing your time and money into the process, you find out that you do not actually meet the qualifications for a Reverse Mortgage. Conversely, many people are told they do not meet the qualifications for a reverse mortgage because they have a unique situation, when, in fact, the consultant they were speaking with was either uneducated or too lazy to take the extra time and energy to do it correctly.

Which is worse, I don’t know. Good people wasting time and money on a dead-end process, or being cheated out of an opportunity that could mean a real change in their quality of life? Neither scenario sounds right to me.

A lot of the negative misconceptions and misinformation stems from early versions of the FHA-insured product that is no longer valid today.

Here, we dispel five common reverse mortgage myths to help you make a more informed decision:

1) Getting a reverse mortgage does NOT mean you give up the title to your home. You still own your home and your equity, and must continue to maintain insurance and pay taxes on the property. You also need to continue to live in your home as your primary residence.

2) You may qualify for a reverse mortgage even if you are behind on your mortgage payments. In fact, that may be a good reason to explore a reverse mortgage option to help alleviate the financial pressure.

3) You may use the cash proceeds from your reverse mortgage without restriction. You may use it for home improvements/repair, paying off debt, medical needs, vacations, or even just as a cash reserve!

4) There are no credit, income, or health assessments needed to qualify for a reverse mortgage in Georgia (or in any state for that matter!).

5) You don’t need to own your home outright (or free and clear) to obtain a reverse mortgage (about half of the seniors who have taken advantage of the reverse mortgage product, have done so to payoff their previous mortgage or home equity line and eliminate their mortgage payment for life!).

Does this change how you think about reverse mortgages? What questions do you still have? Our reverse mortgage experts can help you with straight-forward, accurate information.

To securely submit your information and talk to a qualified professional about your specific circumstances, please fill out our form or call 1-800-290-0745.

Sincerely,

Brandon S. Smith
President & CEO, the Reverse Mortgage Helpdesk