Mortgage Blog

Reverse Mortgage Myths Busted!

December 9th, 2015 | HECM Reverse Mortgage, Retirement Planning, Reverse Mortgage, Government insured mortgage, home equity access, Seniors, supplemental retirement income

Myth: "Property Ownership Exchange"

Fact:  When a homeowner obtains a government insured HECM Reverse Mortgage on their home this in turn establishes a mechanism for home equity access that is much easier to qualify for than a traditional forward loan.  Many people, including advisors and realtors, have somehow been led to believe that this is a trade.  In other words, an easy qualifying non-recourse loan insured by the government in exchange for the government assuming ownership of the home.  

This is completely false.  There is no such exchange and the  Deeds of trusts are used similar to traditional mortgages and the homeowner(s) remain on title as the sole owner(s) of the property with full ownership rights. 

To take it one step further, this also means that any appreciation in the property inures to the homeowner.  Conversely, if the property were to decline in value the homeowner would then have less equity but there would be no adverse effect on their locked-in benefits at closing for their Reverse Mortgage. 

Reverse Mortgages are complex but don’t allow myths and skepticism to cloud potential opportunity. For more, reverse mortgage myths debunked, see our page Reverse Mortgage Myths Busted!

Good News!  We have added Washington DC to our territory.  We currently specialize in government insured HECM Reverse Mortgages for all counties in Virginia, Maryland, Washington DC, and Pennsylvania.


George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Helping seniors with Reverse Mortgages in Virginia, Maryland and Pennsylvania.

Questions/Comments encouraged.


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Jefferson Mortgage Group LLC

2536 Leeds Rd.
Oakton, Virginia 22124
FAX: 703-773-6946
NMLS: 935554

Located in Fairfax County, Virginia. Serving all of Virginia, Maryland & Pennsylvania. 


Jefferson Mortgage Group LLC is licensed in Virginia, Maryland & Pennsylvania.
Virginia State Corporation Commission License Number MC-5659 and the Pennsylvania Department of Banking & Securities #46259 
Maryland DLLR License #21586

An Equal Housing Lender

By refinancing the consumer's existing loan, the consumer's total finance charges may be higher over the life of the loan.

This material is not from HUD or FHA and has not been approved by HUD or any government agency.