Is a Reverse Mortgage Safe?

1. You retain ownership of your home for life: this is guaranteed as long as you maintain your home, continue to live in the home as your principle residence and keep your real estates taxes and homeowners insurance current.

2. FHA (Federal Housing Administration) fully insures your loan and guarantees that no debt ever passes to your heirs, beyond what the home is worth.

3. HUD regulates the program to protect you.  All reverse mortgage applicants must complete a counseling session with an independent, HUD approved counselor.

4. There are no changes to your property taxes and if you live in Oregon you may be able to defer your taxes after your Reverse Mortgage.

5. HUD sets the interest rates every week and regulates all fees related to obtaining a HECM loan.

6. Funds are tax-free and can be used for any reason, without repayment, as long as you live in your home.

7. There are no credit, medical or income qualifications.

8. The loan can be paid back at any time, for any reason, with no penalties.

9. HECM payments do not affect Medicare or Social Security benefits because those benefits are not based on the assets of the recipient.

10. Your heirs may repay the loan balance by selling the home or by paying off the HECM loan so that they may keep the home.  With a HECM, you are legally required to pau back to the lender only the outstanding balance.  Any money remaining after the mortgage is paid goes to you or, upon your death, to your heirs.