The Facts about
Myths & Misconceptions
The following information is to address common concerns about the Reverse Mortgage product.
- 1. We do NOT take your home.
You and your estate will continue to retain ownership and the title to your home.
- 2. Your heirs will NOT be responsible for the repayment of the debt.
The reverse mortgage is a non-recourse loan. This means that America Finest City Mortgage can only receive payment from the proceeds of the sale of the property. Any balance owed above and beyond will be covered by the mortgage insurance premium that was paid to HUD during the course of having the reverse mortgage.
- 3. You do NOT have to make monthly payments on your Reverse Mortgage.
We are in the business of helping you keep your home and meet any financial needs you may have to maintain financial independence. You may remain in your home as long as you wish. However, at any time you decide to sell your home, the outstanding balance would need to then be repaid.
Frequently Asked Questions
Below is a list of Frequently Asked Questions by category. If you do not find the answer to your question(s), please don’t hesitate to call one of our Reverse Mortgage Specialists today at 855.227.7572. At America Finest City Mortgage our specialists are fully trained to help educate and guide you in the right direction with no obligation. Look for your question below:
Do I have to own my home free and clear to qualify?
You can payoff your existing mortgage with the proceeds from the reverse mortgage. Many people get a reverse mortgage to eliminate their monthly payments permanently.
Will there be any tax liability once I close on my reverse mortgage?
No there is not. Currently the IRS treats monies received from the reverse mortgage as loan advances, therefore, the proceeds are not considered taxable income. For more specific information, please consult a tax advisor.
Will a Reverse Mortgage affect Social Security Benefits, Medicare or my Pension?
No it will not. The proceeds from a reverse mortgage does not affect these benefits. For your specific situation please contact your benefits specialist.
If something happens to me, can my spouse continue to receive the benefits from a Reverse Mortgage?
Yes they can. As long as you were joint borrowers on the application for Reverse Mortgage and your spouse wants to remain in the home.
Can I still leave my home to my kids?
Yes you can leave your home to your heirs. Your home will always remain your home. You may leave it to whomever you wish. When you pass away your heirs will have options for paying off the loan. After the debt is repaid, any remaining equity (if they choose to sell it) will go to your heirs.
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