Common Myths, Busted

Myth 1: "The bank owns your house"

FALSE. You retain full title. The bank has a lien, just like any mortgage.

Myth 2: "Your children cannot inherit"

FALSE. Heirs can keep the home by paying off the loan or selling.

Myth 3: "You will lose your home if you outlive the loan"

FALSE. As long as you occupy the home, no repayment is due.

Myth 4: "It is welfare/Medicaid spend-down"

FALSE. Social Security and Medicaid have lookback periods — consult an elder law attorney.

Myth 5: "Only poor people get reverse mortgages"

FALSE. Many affluent homeowners use reverse mortgages as retirement planning tools.

Compliance Notice: Borrowers must be 62 years of age or older. HUD-approved counseling is required. A reverse mortgage is not a government benefit. The loan becomes due and payable when the last surviving borrower no longer occupies the home as their primary residence or fails to meet the obligations of the mortgage.