2009 has been a big year in Orange County for the FHA Reverse Mortgage program, also known as the HECM, or Home Equity Conversion Mortgage. There are many myths regarding Reverse Mortgages. Many of these myths are far from the truth. Some are based on how Reverse Mortgages were written in the 80's. Here are just a few of those myths.
Myth #1: When the borrower dies, the survivors lose their inheritance.
This is not the case, but this Myth seems to be one of the biggest concerns for borrowers considering a Reverse Mortgage. Reverse Mortgages are "Non-Recourse". This means the lender cannot go after the family for any losses they will suffer if the property is worth less than the mortgage. As a matter of fact, the heirs will never owe more than the home is worth.
Myth #2: Loan Costs are high and unregulated.
Most Reverse Mortgages are FHA, and the fees are highly regulated. Plus, fees can be financed into the loan, essentially eliminating out of pocket expenses.
To Apply for an Orange County Reverse Mortgage, talk to a localand experienced FHA lender.
For a few more myths, check this out. Home Point Financial is a Direct Endorsed FHA Lender located in Orange County, CA. We fund Reverse Mortgages in our office. For more information, or to see if you are qualified, contact Tim Storm at 949-829-1846.