EMAIL FRIEND Setting the Record Straight Reverse Mortgage Misconceptions You May Have Read or Heard FOR MORE INFORMATION: With the misconceptions of Reverse Mortgages removed, a person may ask, where can I get more detailed information about this program? Here are some sources: The American Association of Retired Persons (AARP) has provided more literature than anyone else on this subject and it is very positive. They have an excellent publication called “Home Made Money”. The Federal National Mortgage Association (FannieMae) also offers a publication titled “Money from Home” that is helpful. The National Council On Aging (NCOA) completed a study in 2005 called “Use Your Home to Stay At Home” plus two booklets “A Planning Guide for Older Consumers” and “A Guide for Homeowners Who Need Help Now”. The American Bar Association (ABA) publishes a book “Reverse Mortgages – A Lawyer’s Guide to Housing and Income Alternatives”. The ABA passed a resolution supporting Reverse Mortgages in August of 1995. Related Links: The lender or bank will take my home We will have nothing to leave our children? When the loan becomes due, the lender will sell my home. There are strict credit and income requirements You cannot have an existing mortgage on your home When the loan comes due you may owe more than the home is worth My Social Security and Medicare benefits will be affected There are restrictions on how the money is used We will have to make monthly payments We will have to pay taxes on the funds received The lender may require immediate repayment A reverse mortgage is similar to a home equity loan Reverse mortgages are predatory It's difficult to qualify for a reverse mortgage Reverse mortgages are prohibitively expensive A reverse mortgage is only for those in desperate need and/or as a last resort Reverse mortgages are not safe Other misrepresentations you may have heard [ PRIVACY POLICY ]     [ TERMS OF USE ]