Myth: You immediately sign over ownership to your home.
Fact: You retain ownership of your home as long as you comply with the loan guidelines and requirements, which can include: maintaining the property, paying property taxes, homeowners insurance, flood insurance, and homeowners association dues (if applicable), and avoiding extended absences from the home longer than six months.
Myth: If you take out a reverse mortgage loan, your children will not receive any equity from the home.
Fact: While the amount of equity typically decreases over time with a reverse mortgage, it doesn’t mean there will be no equity left when the last borrower dies. The amount of equity left depends on several factors, including home appreciation, the term of the loan, and optional monthly payments. Your children may still have equity.
Myth: When you die, your children will be responsible for repaying the loan
FACT: A reverse mortgage is a non-recourse loan, meaning the lender cannot be paid more than the value of the home if the home is sold. So, even if the home’s value declines significantly, the maximum repayment amount can only be as much as the value of the home. They will not be obligated to repay the loan, but have the option of refinancing it to purchase the property themselves.
Myth: You must make monthly mortgage payments with a reverse mortgage.
Fact: While you can choose to make mortgage payments, they are not required with a reverse mortgage. The borrower is still responsible to maintain the property, pay property taxes, homeowners insurance, flood insurance, and homeowners association dues (if applicable).¹
Myth: Before you can qualify for a reverse mortgage, you must have paid off your first mortgage.
Fact: While any debt on the title of your home must be paid off at closing, as well as having adequate equity in the home, it is not necessary to own your home “free and clear” before getting a reverse mortgage.
Myth: You are not allowed to sell your home if you have a reverse mortgage.
Fact: You can sell your home if you wish and – just like any other mortgage loan – you must pay off the reverse mortgage at closing. There are also no prepayment penalties if you choose to pay off your loan early or make loan payments.
This material is not provided by, nor was it approved by the Department of Housing & Urban Development (HUD) or by the Federal Housing Administration (FHA). It is not intended to be a substitute for legal, tax or financial advice. Consult with a qualified attorney, accountant or financial advisor for additional legal or tax advice.
*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower(s) must continue to pay for property taxes and insurance and maintain the property to meet HUD standards or risk default. Credit is subject to age, minimum income guidelines, credit history, and property qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.
Kevan Green
C2 Reverse Mortgage Professional
NMLS #256908 | BRE #01140535
This licensee is performing acts for which a real estate license is required. C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker BRE #01140535 | NMLS #256908 Loan approval is not guaranteed and is subject to lender review of information. Loan is only approved when lender has issued approval in writing. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender. The services referred to herein are not available to persons located outside the state of California.
C2 Financial Corporation is approved to originate VA loans, and has the ability to broker such loans to VA approved lenders. C2 Financial Corporation is not acting on behalf of or at the direction of HUD/FHA or the VA.
Web Design & SEO by Hozio
Kevan Green
By Clicking submit you agree by electronic signature to:
