The Facts about How a Reverse Mortgages Works
A common misconception about reverse mortgages is that they are complicated and vastly different from any other type of mortgage. In reality, once you have all the facts about how a reverse mortgage works you will come to see that it is simply a home equity loan, with fewer requirements to qualify, a more consumer friendly method for repayment, which has about a dozen Reverse Mortgage consumer safeguards that are not found in other types of mortgages.
FACT: FHA-Insured Reverse Mortgages Have Been Helping Seniors for More Than Two Decades
The FHA-insured reverse mortgage, also known as the Home Equity Conversion Mortgage (HECM), was developed more than two decades ago. The legislation that caused the HECM to become law was part of the Community and Homeowners Development Act of 1987, and was signed into law by President Ronald Reagan in February 1988. Since 1988, many seniors have wondered how does a reverse mortgage work and is it right for them? And approximately 750,000 seniors have discovered that a reverse mortgage does work for them.