EMAIL FRIEND Setting the Record Straight Reverse Mortgage Misconceptions You May Have Read or Heard MISCONCEPTION #8 - THERE ARE RESTRICTIONS ON HOW THE MONEY IS USED. There are absolutely no restrictions on how the money from a reverse mortgage can be used. Many homeowners use the money to pay off an existing mortgage, pay for home health care expenses, or have a cash cushion for an increased sense of financial security. 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 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 For more information [ PRIVACY POLICY ]     [ TERMS OF USE ]