Most Americans want to remain in their own home as they age. However, paying for in-home care can create a serious financial drain on adult children. A reverse mortgage may make it possible for our parents to age in place and meet their income shortfall.
Following is some helpful information when considering an FHA HECM for your parents:
• The bank does NOT get your parents’ home once they permanently leave the home.
• The home always remains titled in your parents’ name.
• If the home goes down in value, neither your parents nor you can ever owe more than the value of the home.
• If you or your siblings wish to retain the home after your parents permanently leave the home, you may refinance the home into your name – just as you would if your parents had a traditional “forward” mortgage.
For more information on how a reverse mortgage works, see my YouTube video, The Basics of How a Reverse Mortgage Works: