Are you a senior or retired individual older than 62 who is looking to supplement your retirement income? If so, you may have heard about a unique financial product known as a reverse mortgage. In today’s blog post we will explore three myths about reverse mortgages and share why they need to be debunked.
Myth #1: This is not safe for the Borrower
It is very safe! the Housing Counseling Program of the Housing and Urban Development Act began in 1968. Reverse mortgage loan counseling has been evolving since 1998 and continues to play a significant role in borrower protections. It is a consumer protection law designed to have a meeting between the housing counselor and the borrower, including as needed their family members, POA or Conservator, to review the borrower’s goals, needs, features of the HECM, responsibilities of the borrower, estimated costs, alternatives to a reverse mortgage and more. It is mandated that the borrower receive HUD counseling prior to signing a loan application with a lender.