Reverse Mortgage Myths and Questions
Today’s reverse mortgages were created by the U.S. Congress nearly 30 years ago. Over time, their requirements, options and safeguards have significantly evolved. So it’s only natural that there are common misconceptions and questions.
FACT: You still own your home.
The title stays in your name for as long as you or your spouse remain in the home.
FACT: Your loan does not impact your earned retirement benefits.
Your reverse mortgage does not affect Social Security, Medicare or other pension benefits in any way. However, it may affect some government assistance programs, such as Medicaid*.
FACT: You’ll never end up owing more than your house is worth.
All of the reverse mortgage programs we offer are Home Equity Conversion Mortgages, which are insured by the U.S. government When your loan comes due, if there is not enough money from the sale of your home to repay your loan in full, Federal Housing Administration (FHA) insurance will pay the difference, not you or your heirs.
QUESTION: How will my loan impact my heirs and their inheritance?
ANSWER: Often, heirs are relieved that their loved ones are benefiting from the equity in their homes and able to meet their financial needs, eliminate debt, etc. When your loan comes due, your heirs have several options. Please see Reverse Mortgages and Your Estate to learn more.
QUESTION: Is my home eligible for a reverse mortgage? What if I still have a mortgage?
ANSWER: Your home must be your primary residence. It’s okay to have an existing mortgage balance, or you may own your home free and clear. Most people who opt for a reverse mortgage have single-family homes but others are eligible, too. To see if your home is eligible, please call and talk to an eReverse expert at 844-612-6410.
* You should consult with a qualified financial advisor to learn how a reverse mortgage could impact eligibility for needs based assistance programs such as Medicaid and SSI.