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Common myths and misconceptions about FHA Reverse Mortgages

I don’t have a mortgage.

Great! You’ll have access to much more money... and with out a mortgage payment. You still own your home. You can sell it at anytime without penalty. You can still leave the home to your family or estate upon death.

It’s expensive

The costs of Reverse Mortgages are standardized. The Government standardized the costs and fees of a Reverse Mortgage to protect. Much like taxes, costs are associated with the value of your home.

I’m better of selling my home

If you sell your home, you’ll certainly make a profit, but you’ll also have to pay to live somewhere else. With a Reverse Mortgage, you take money from the home without a mortgage payment or rent!

It will affect my benefits

The money you receive from a FHA Reverse Mortgage is tax-free. It is not considered income and thus, doesn’t affect your Social Security and Medicare benefits. Nonetheless, to ensure you comfort, please refer this question to a tax advisor.

I don’t need it.

A FHA insured Reverse Mortgage is a great way to improve the quality of your life. Where else can you borrow money this way?

There will be nothing left for my kids

Your home will continue to appreciate in value. The more it appreciates the more will be left for your kids. For example, if your home is worth $150,000 and you access $100,000 through a Reverse Mortgage. Now… assume you pass in 10 years when the home is worth $250,000 and your loan is $150,000. In this situation, you are essentially leaving your kids with a $100,000 profit. Your kids can then sell the home for the profit or refinance it in their own name and keep it. If they do neither, the bank will sell it for them.