Misconceptions about Reverse Mortgages

Myth #1:  You sell your house to the bank:
You always keep title to your house and have complete control over it. You will never lose your home due to non-payment of the loan. Once the loan is settled, you are no longer liable for the debt. 

Myth #2:  You can be forced to leave your home:
Reverse Mortgages backed by the Federal Housing Authority and the Department of Urban Development specifically indicate you cannot be forced to leave your home.

Myth #3:  Your home must be debt-free to qualify:
Even if you have a first mortgage or other debt, you may qualify. But Reverse Mortgage proceeds must first be used to pay off debts that effect title.

Myth # 4:  There are income qualifications that may disqualify you:
There are no income qualifications at all. The loan is based only on your age, the value of your home, the amount of equity you have and current interest rates.

Myth #5:  You will lose your Medicare and Social Security benefits:
Money you receive is a loan, not income. Therefore, your Medicare and Social Security benefits are not effected.

Myth #6:  Your heirs won't inherit anything:
When you are deceased, your heirs can repay the loan and keep the home or sell the home and use the proceeds to pay off the Reverse Mortgage.

Myth #7:  You will have to make a monthly payment:
There is never any monthly payment to make. The flow of payments is reversed. The lender pays you.

Myth #8:  My condominium does not qualify for a Reverse Mortgage:
Reverse Mortgages are not limited to single family dwellings. You can also receive a Reverse Mortgage on condominiums, multi-family dwellings and manufactured housing as well.

For more information call me at (206)930-5606

Ed Moda
Reverse Mortgage Specialist