Three Common Misconceptions About Reverse Mortgages
Three common areas that are misunderstood are: What happens if I outlive my reverse mortgage? What happens to the inheritance for my family? Does the reverse mortgage bank own my home? These are all good questions that are fairly simple to answer, however are very important and have lasting implications. 1. Can I outlive a reverse mortgage? The answer is No. There is no loan maturity date nor an age limit. The loan must be repaid when the last surviving spouse has passed away or no longer lives in the property. During that time, there are certain FHA requirements that must be met. This means that the home must be maintained in good condition and the property taxes and homeowners insurance must be paid on time. As long as these requirements are met, there is no payment required on the loan for as long as the last surviving spouse remains in the home. 2. What about my family's inheritance? Upon the passing of the last surviving spouse, the reverse mortgage loan must be