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Dispelling the myths surrounding reverse mortgages.

Perhaps it’s the popularity of those late-night TV infomercials. You know the ones: a celebrity spokesperson (strategically sitting in front of a bookshelf) leans into the camera and starts a conversation with that elusive 62 year-old and up demographic.

Or maybe it’s the stigma throughout the years as being a “last resort” loan for those in need. A lifeline, so to speak.

For whatever the reason, people have been very suspicious of reverse mortgages for decades.  And yet, even with all the efforts to alter the perception of reverse mortgages as a viable financial tool for people during their retirement years, the misconceptions persist.

We want to change that right here and now. So let’s clear the slate, set aside the confusion, cast away the small print and pesky asterisks and start by debunking the top five myths surrounding reverse mortgages. Here we go (in no particular order):

I Have a Mortgage So I Can’t Get a Reverse

Don’t have your home fully paid off? As long as you have equity in your home, you may still qualify for a reverse mortgage.

Even if you don’t think you have enough equity in your home, a reverse mortgage could be a great financial tool moving forward. An expert loan officer can help you determine what’s right for your situation. And take this to heart: statistics show that many homeowners over the age of 62 still have a mortgage and owe money on their primary residence. So if you don’t own your home outright you are not alone.


Reverse Mortgages Have Large Out-of-Pocket Expenses

Similar to any traditional mortgage, reverse mortgages do have costs and fees.  The majority of these fees are the same fees you would pay for any mortgage. The good news is that you can roll most of them into the loan, which greatly reduces any out of pocket expenses. In fact, many borrowers pay little to no fees out of pocket.

Finance of America Reverse even has products with fees much less than fees tied to a traditional mortgage.

Your lender should provide you with a detailed cost breakdown that explains the different interest and pricing options, closing costs and fees, which can vary based upon the type and size of the loan.


I Will Have Nothing to Leave My Children

With a reverse mortgage, you can still leave your home to your children. The title will pass to your estate. Heirs can choose to either keep the house by refinancing the existing mortgage balance or if there is still remaining equity, sell the home and keep what remains from the balance of the loan and the proceeds of the sale.

You always have the option to make elective payments to pay down or minimize the impact of the accrual of interest on your loan. This would protect equity to pass on.

In the case that home values go down, know that you can never owe more than the value of the home at the time your estate has to repay the reverse mortgage. These are non-recourse loans and your heirs are protected from inheriting debt from the reverse mortgage.


Reverse Mortgages are Only For Desperate People

Not so. A reverse mortgage can be a true path forward in retirement. You’ll find that there are many people today who are using reverse mortgages for a variety of reasons. The most common use is to pay off an existing mortgage. While some might use this tool as a means to defer collecting social security or as a safety net for emergencies, others are using home equity to enhance their life with greater flexibility and options in retirement. Some might want to realize a business idea, travel, help family members with education expenses, make charitable donations, or even use the funds for buying additional real estate. The beauty is, this is your hard-earned asset. A reverse mortgage can be an effective tool to help add choices to your retirement years.


The Bank Will Own My Home

Don’t worry. Even with a reverse mortgage, your home is still yours.

As long as you meet the requirements of the loan you will retain ownership and keep title to your home. And, contrary to popular belief, the requirements of the loan are very simple: the home must be your primary residence, you must maintain the home, you have to pay your property charges (homeowners insurance, taxes, HOA fees), and you must honor the terms of your loan documents. The only way you could lose your home is if you don’t meet one of these requirements.


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Optimize Your Retirement with a Reverse Mortgage

A Finance of America Reverse (FAR) Mortgage lets you tap into your home's unlocked potential so you can realize your retirement goals.

A reverse mortgage can enhance your financial future, whether you're looking to improve your retirement outlook or write the next chapter in your life.


Are you ready for retirement?

Where are you with your retirement planning? While some of you may have been preparing for this moment for years, many may now be realizing you need to start planning for tomorrow, today. A reverse mortgage from FAR may be the right next step.

Tools for the road ahead.

When it comes to planning your next chapter in life, it’s important to know all of the options available to you to make it possible.

FAR is here to help with a number of reverse mortgage products designed to leverage your unique situation and get the wheels in motion toward a bright and healthy retirement future.

Simply put, a reverse mortgage is a loan that lets homeowners 62 years of age or older tap into their home’s equity and convert it into either cash, a line of credit or monthly payments.


Created by FAR, HomeSafe is a reverse mortgage for higher value homes that allow larger loan amounts to be taken out by qualified borrowers. Tap into your home equity or use it to purchase a new home that is a million dollars or more.

A Home Equity Conversion Mortgage, or HECM, is a reverse mortgage insured by the FHA that is available to homeowners 62 years or older that have significant equity built up in their home and would like to convert it into supplemental income.


Reverse for Purchase


Thinking about buying a new home or condo? Our Reverse for Purchase options could be a smart choice for your needs. Whether it’s our HECM for Purchase or our HomeSafe for Purchase loan, these reverse mortgage loans allow you to either keep cash on hand or increase your buying power.

A refinance gives homeowners who have already obtained a reverse mortgage the opportunity to refinance their loan into a new loan. For homeowners who have seen their homes significantly appreciate in value, refinancing is a way to gain access to that additional equity.

Why FAR?

We are Finance of America Reverse LLC (FAR), one of the nation’s leading financial lenders specializing in Reverse Mortgages. We offer simple, honest advice to help people see a more promising and rewarding retirement future. We also offer more solutions for using your home equity to power your next chapter than anyone else in the industry.

Talk to a Loan Educator: 

Here to help.
Here for you.

Why FAR?

We are Finance of America Reverse LLC (FAR), one of the nation’s leading financial lenders specializing in Reverse Mortgages. We offer simple, honest advice to help people see a more promising and rewarding retirement future. We also offer more solutions for using your home equity to power your next chapter than anyone else in the industry.

Talk to a Loan Educator: 

Here to help.

Fill out the form below and we’ll reach out with more information.


Here for you.

FAReverse LLC i/l/t/n Finance of America Reverse LLC is Licensed Mortgage Banker in the State of New York, but this site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.