Orange County Reverse Mortgage Myths

There are a lot of myths being passed around about Reverse Mortgages in Orange County, CA. Rather than believe these myths, a potential Reverse Mortgage borrower should research and educate themselves on the Reverse mortgages and how they work. Here are a few of those myths.

Reverse Mortgage Myth #1: Ownership of the property is transferred to the lender.

Truth: The owner keeps ownership and title of the property. A Reverse Mortgage is still a mortgage. It is not a transfer of title and never will be.

Reverse Mortgage Myth #2: Loan costs and fees are high and unregulated.

Truth: On a typical mortgage, the lender fees are based on the loan amount. Also, on a traditional mortgage, there are many additional lender fees besides the Origination Fee. HUD, or FHA, does not allow this and the fees are regulated. This is a government regulated loan program.

Reverse Mortgage Myth #3: A Reverse Mortgage will disqualify an individual from other Federal Benefits.

Truth: A Reverse Mortgage has not impact on Social Security or Medicare benefits. A financial planner should be consulted to make sure there is no adverse impact to Medicaid and Supplementary Security Income Benefits.

Reverse Mortgage Myth #4: When the Homeowner dies, the survivors lose their inheritance.

Truth: This is definitely not the case. However, this is the Myth that concerns people the most. If the spouse is on title then they can continue to live in the home and receive the reverse mortgage benefits. If there is not a surviving spouse, the remaining equity in the home is passed to their heirs. The heirs can sell the home or keep the home by applying for a new mortgage. They will never owe more than the property is worth since a Reverse Mortgage is a Non-Recourse loan. The lender will typically give the heirs 6 months to sell or refinance.

Reverse Mortgages in Orange County, CA are becoming more and more popular as homeowners are learning of the benefits. The first step is to contact a knowledgeable loan officer who can give guidance with this program.

Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7.

www.OCFHALoans.com