Common Misconceptions

Misconception #1: “I will have to sign over the title, and the government or bank will own my home.”
You NEVER relinquish the title to your home. You own it until you sell it or pass it on to your heirs. The homeowner must continue to maintain and pay taxes and insurance on the property.
Misconception #2: “The lender will take my house when I run out of reverse mortgage funds…I will be thrown out of my house.”
The purpose of a reverse mortgage is to help seniors remain in their home! The reverse mortgage is not due until the last surviving borrower permanently leaves the residence, regardless of the balance of reverse mortgage funds.
Misconception #3: “When the reverse mortgage comes due, the lender will sell my house.”
Repayment typically comes from the sale of the home, but it is up to the homeowner or the estate to sell the home. Once the home is sold, the borrower or estate pays the reverse mortgage balance and keeps any and all remaining funds.
Misconception #4: “I will owe more than my home is worth, passing on a debt to my children.”
Reverse mortgages are non-recourse loans. This means neither you nor your heirs will ever owe more than the amount for which you can sell your home.
Misconception #5: “I won’t qualify because of my credit or my lack of income.”
Income and credit scores are not factors for qualifying for a reverse mortgage. Even if you are behind on your mortgage payments, you may still qualify for a reverse mortgage.
Misconception #6: “I must own my home ‘free and clear’.”
To qualify for a reverse mortgage, your home does NOT have to be owned “free and clear.” Any existing mortgage will be paid off first with the funds. The homeowner will receive the remaining funds, if any.
Misconception #7: “I’m not poor. I don’t need a reverse mortgage.”
Reverse mortgages are not just for those with financial needs. Seniors today are using this program for many purposes like estate planning, improving their standard of living, home remodeling, etc.
Misconception #8: “I don’t want to pay taxes on the money I get from a reverse mortgage.”
The IRS does not consider loan proceeds from a reverse mortgage to be considered as income. The lump sum or monthly payments you are receiving are advances on your own equity. Consult your tax advisor for more information.

Call us today toll-free at 1-800-250-8810 to speak with a reverse mortgage expert or complete the “Quick Quote” form to find out how much money is available to you today.

 

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