You will not own your own home.
TRUTH: You or your estate continue to retain ownership of your home. The lender’s interest is limited to the outstanding loan balance and they do not take control of the title.

When my reverse mortgage comes due, my children may owe more than the house is worth.
TRUTH: The Reverse Mortgage is a non-recourse loan. This means that the lender can only derive repayment of the loan from the proceeds of the sale of the property.

You must meet income, credit or health requirements to qualify.
TRUTH: There are no income, credit or health requirements to qualify. To qualify, homeowner should have sufficient value in the home, be at least 62 years of age, and use the home as their primary residence.

You must make monthly payments on your Reverse Mortgage.
TRUTH: Payment of insurance, taxes and general upkeep of the home are the only responsibilities of the homeowner. There are never any monthly payments.

Your home must be paid off to qualify for a reverse mortgage.
TRUTH: You may have a mortgage or other debt on your home. However, the mortgage or debt must be paid off with the proceeds from the reverse mortgage.

You can’t get a reverse mortgage because your house needs too many repairs.
TRUTH: A reverse mortgage is a great way to get some needed home repairs accomplished without increasing monthly payments. As part of the process of getting a reverse mortgage a property appraisal is performed by a FHA-licensed appraiser. In addition to estimating the home value the appraiser gives a listing of any repairs that would be required to bring the home up to FHA property standards. Usually, these repairs can be performed after the reverse mortgage is in place and paid for by the proceeds of the loan.

Only the "cash poor" or desperate seniors can benefit from the Reverse Mortgage.
TRUTH: Even though some seniors may have a greater need than others for the cash or monthly income, the Reverse Mortgage can also be an excellent financial or estate planning tool to enhance the quality of life and better manage their assets.