The Lender will own your home. FALSE!

You, your family or estate continue to retain ownership of your home.  The Lender does not take control of the title.   The lender’s interest is only to the extent of the outstanding  loan balance.  As with a traditional mortgage they never have ownership in the property.

The Lender cannot wait for me to “get out of my house” so the lender can be repaid. FALSE!

The HUD approved Lender(s) are not in the business of selling homes.  However, with the support of HUD they are in the business of helping seniors keep their homes and being able to use some of their equity to meet whatever financial needs they may have – without causing further financial difficulties by requiring a mortgage payment.

My heirs will be responsible for repayment

of the loan. FALSE!

The Home Equity Conversion Mortgage is a Non-Recourse Loan, this means that the lender can only recover repayment of the loan from the proceeds of the sale of the property. If the property decreased in value and the loan amount was greater, the lender is paid the difference from the HUD  Mortgage Insurance. Your heirs will not be responsible for the repayment of the loan

Home Equity Conversion Mortgages (HECM) are very safe. TRUE!

FHA and Fannie Mae guarantee the payments that are made to you (not applicable to CASH Account option). You continue to own your home and are guaranteed that you can stay in your home as long as you like, AND…You (the Borrower) are guaranteed that you can never owe more than your house is worth. All of the above guarantees are further backed by the HUD Mortgage Insurance on HECM’s.