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Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
​iReverse Home Loans, Corporation
Branch Office * 8231 Tobago Lane, Wellington, FL  33414 * Branch NMLS #1613062
Branch Manager Russel Helfman M.B.A.   * Individual NMLS #387498
855-434-2349 (Phone) * 516-706-6125 (Fax)
Corporate Office * 7689 Sitio Algodon, Carlsbad, CA  92009 * Corporate NMLS #1564664
Low-Cost-Reverse-Mortgage-Help
We originate reverse mortgages in Florida, Texas and California
In Texas DBA “iReverse Home Loans of Texas, Corporation”
Myths & Misconceptions
Time has shown that Reverse Mortgages are a safe and secure financial tool. Yet there are still some misconceptions about the program. Listed below are some of the common Myths and Misconceptions…


- The bank will own my home/The lender takes the title to my home – Not true!
  • This is probably the greatest misconception regarding reverse mortgages. Just like with a traditional mortgage, you maintain the title to your home for the life of the reverse mortgage. The homeowner can sell the home at anytime. The homeowner retains all future value appreciation in the home. As long as your property taxes and insurance are paid and the home is maintained in reasonable condition, you can never be forced out of your home.


- You need good credit for a reverse mortgage. – Not true!
  • There are limited income, asset, employment or credit qualifications because there are no monthly payments due. A reverse mortgage is based on your home’s equity and the borrower’s age. The qualifications are that you must be at least 62 years of age, the home is your primary residence and that the home has enough equity built up.


- Reverse mortgage borrowers or their heirs can owe more than their home is worth – Not true!
  • Federally insured FHA HECM (Home Equity Conversion Mortgages) loans are “non-recourse” loans which means the borrower can never owe more than the market value of the home regardless of the loan balance. Any balance owed that is greater than the home’s market value when the loan becomes due will be reimbursed through the FHA insurance fund.


- The bank will own my home when I pass away or move/The bank sells my home when the mortgage comes due– Not true!
  • When you no longer live in your home, the reverse mortgage becomes due. It is then up to your estate how to repay the reverse mortgage. They can sell the home and use those funds or they can obtain a traditional forward mortgage to refinance the loan. If the home is sold, any amount left after what is owed on the balance of the reverse mortgage belongs to yourself or your estate.


- I will loose my Medicare or Social Security benefits with a Reverse Mortgage – Not True!
  • Money from a reverse mortgage is not considered income, it is a loan advance. Therefore the payments will not affect “entitlement” based government benefits such as Medicare or Social Security. Need-based benefit programs like Medicaid or Supplemental Social Security may be impacted so this must be reviewed with your local area agency on aging and/or a qualified financial advisor since programs vary by state.


- I cannot do a reverse mortgage if I currently have a mortgage on my home/I must own my home free and clear to get a reverse mortgage – Not True!
  • You can still be eligible for an FHA reverse mortgage as long as you have adequate equity built up. The current mortgage will have to be paid off entirely with proceeds from the reverse mortgage. For many people the greatest benefit in getting a reverse mortgage is to payoff their current mortgage and eliminate their monthly payment.


- The bank can restrict how I use the funds from the reverse mortgage – Not True!
  • There are absolutely no restrictions on how you use your reverse mortgage proceeds. 


 - I will have to pay income taxes on the funds I receive – Not True!
  • Payments from a reverse mortgage are not considered earned income, they are a loan advance or proceeds of a loan. Therefore you will not be required to pay income taxes on funds from the reverse mortgage.


- The bank can force me out of my home if I live too long – Not True!
  • As long as you keep your homeowner’s insurance and property taxes current and maintain your home in good condition, the bank cannot force you to vacate your home. Because you pay FHA mortgage insurance, it is guaranteed that even if you live to be over 100, you can never owe more than the market value of your home and you can never be forced to leave. 


- My loan terms will change if my loan is sold – Not True!
  • The terms of your loan can never change. There will be documents signed as part of the closing process that ensures that your loan terms cannot change.


- I am going through foreclosure so I don’t qualify for a reverse mortgage – Not true!
  • As long as you have enough equity built up in your home and are 62 years or older, the HECM Reverse Mortgage can save your home from foreclosure.


- My surviving spouse will have to repay the loan when I pass – Not True!
  • As long as you were joint borrowers on the application for the Reverse Mortgage, your spouse can continue to live in the home with no payments required.


- We will have noting to leave to our children/My kids will not inherit the home’s equity/I will no longer have an estate to leave my heirs – Not True!
  • Since you always retain title to your home, all proceeds from the sale of your home in excess of what you owe belong to your estate, which means the remaining equity in your home can be passed to your heirs.  


- We will have to make monthly payments – Not True!
  • There are never any monthly payments. If the borrower wants to make monthly payments, they can do this when and if they desire. The financial responsibilities of the homeowner are payments of taxes and insurance.


- A reverse mortgage is similar to a home equity loan – Not Really!
  • A reverse mortgage and a home equity loan are similar in only one regard – that they both use your home’s equity as collateral. The significant differences include:
                    - With a home equity loan you are required to make monthly payments over a pre-determined number
 of years. With a reverse mortgage there are no monthly payments and the homeowner is not liable to the bank for any loan balance that exceeds the fair market price of the home.
                    - A home equity loan requires income and credit score qualification.
                    - Additionally, with a reverse mortgage adjustable rate option, the unused balance in the line of credit grows at an interest rate approximately a half of a percentage higher than the rate on the loan. 


- Reverse mortgages are unsafe or even predatory – Not True!
  • There are many safeguards set up for borrowers of reverse mortgages. Reverse mortgages are one of the most regulated of all mortgage loans. You are required to obtain counseling by an independent third party HUD-approved agency before a reverse mortgage can proceed. In addition, every borrower has a full 3 day right to cancel after signing closing documents.




If you have any questions about the "Myths & Misconceptions" about the reverse mortgage program, please contact us so we can explain any details about the program...​
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Reverse Mortgage Help Desk - Rated A+, The Honest Place to Find out How the Loan Works and If It’s Right for You.  Low Cost Loans Our Specialty.
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
Low-Cost-Reverse-Mortgage-Help
​iReverse Home Loans, Corporation
Branch Office * 8231 Tobago Lane, Wellington, FL  33414 * Branch NMLS #1613062
Branch Manager Russel Helfman M.B.A.   * Individual NMLS #387498
855-434-2349 (Phone) * 516-706-6125 (Fax)
Corporate Office * 7689 Sitio Algodon, Carlsbad, CA  92009 * Corporate NMLS #1564664
Low-Cost-Reverse-Mortgage-Help
We originate reverse mortgages in Florida, Texas and California
In Texas DBA “iReverse Home Loans of Texas, Corporation”