• An equity loan (if you qualify) may be a cheaper way of getting cash out of
your home as closing costs will be lower.
• If your primary goal is fixing up your home and a community loan can provide
adequate funds, a Reverse Mortgage is not your best option.
• If you are ill or disabled and assisted living or a nursing home is imminent, do
not choose a Reverse Mortgage. If you leave your premises for 12 consecutive month, the loan will be called and will need to be repaid.
• If your financial situation will preclude you from paying real estate taxes,
insurance, and maintaining your home, forego a Reverse Mortgage. You don't want to get into trouble. If possible, opt for a LESA, a Life Expectancy Set Aside so the lender will take care of paying them for you throughout your loan. (Refer to FAQ-Questions People Ask for more info.)
• If your children invite you to live in their home and spend your remaining years with them. Many seniors find themselves able to move in with their children and also benefit their heirs in doing so.
HECM COUNSELING IS REQUIRED. Your counselor will aid you in determining how well a reverse mortgage will work for you and go over alternatives. The reverse mortgage cannot proceed without this important HUD-required safeguard.