Reverse Mortgage True or False

1. If I get a reverse mortgage, that means the bank holds title to my home.

False. Title does not get transferred into the bank's name.  Throughout the life of the loan, you own your home.

2. Even though I have done my research on reverse mortgages and fully understand the product, I still have to obtain reverse mortgage counseling.

True. All programs require independent, third party counseling from a HUD approved counseling agency to ensure a complete understanding of this mortgage product. 

3. Since I still own the home, I am still required to pay my taxes and home owner's insurance.

True. You are required to live in the property, keep up with the maintanence and pay the real estate taxes and home owner's insurance.

4. I must have good credit to qualify for a reverse mortgage.

False.  Your credit score is not a deciding factor.  The lender will run a credit report for tax and federal liens.  All recorded liens must be paid off and property taxes must be paid current at the time of closing so the lender can take first position.

5. My house must be in prime condition if I am to be considered for a reverse mortgage.

False.  The lender requires that the home meet certian guidelines.  If you are considering a Home Equity Conversion Mortgage, it must also meet HUD's requirements.  You may also qualify for a repair set-aside if work needs to be done on your home.  Check with your lender for more information.