I have been a Reverse mortgage consultant for almost 20 years and quite often, I am asked why would anyone ever use a reverse loan?
It’s certainly a reasonable question, but most of the time, it’s coming from a place of lack of correct information about the FHA HECM loan program for seniors and too often the “stories” and myths they have heard about reverse loans.
Initially when I first started in this profession, the most common reason for applying for it, was the need for additional funds to simply pay on going monthly expenses. Needless to say, the amount of money seniors receive from Social Security are woefully inadequate to pay mortgage payments ( if they still have a mortgage), food, utilities, medical expenses and the plethora of costs we all have each month.
In my next several posts, I’m going to talk a bit about the loan and how it’s become more affordable and other misconceptions that are still circulating in the public about it.
And I will share some stories about some of my clients ( Without naming them), as to why they chose to use a Reverse loan in their particular situation.
And…. no one has ever regretted their decision.