1) I'll have to sign over the title, and the bank/lender will own my home. As homeowner, you remain on the title to your home when you obtain a reverse mortgage. The lender does not own the home, but does place a lien against the title.

2) The bank will take my house when I use up my reverse mortgage funds and I'll be thrown out of it. The purpose of a reverse mortgage is to help you stay in your home. The loan does not become due until the last surviving borrower permanently leaves the home, regardless of the balance of funds. Under the terms of the loan, you are required to pay your property taxes and insurance and maintain the home in reasonable condition.

3) When my reverse mortgage becomes due, the bank/lender will sell my house. While prepayment typically comes from the sale of the home, that's determined by you and your estate. If the home is sold, you or your estate pays the reverse mortgage balance and keeps any remaining funds.

4) I'll owe more than my home is worth, passing debt onto my children. Reverse mortgages are non-recourse loans, which means the loan is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but the lender's recovery is limited to the collateral. Therefore, if the home is worth less than the loan balance, you only repay the current value of the home at the time the loan becomes due.

5) I won't qualify because of my bad credit or lack of income. Income and credit scores are not deciding factors for reverse mortgages. The lender only conducts a minimal credit check for identity-verification purposes and to satisfy government and investor guidelines.

6) I'm not eligible because I don't own my home free and clear. You may qualify, even with a first or second mortgage on the home. Any existing mortgage debt will be paid off first, with the proceeds from your reverse mortgage. You receive any remaining funds.

7) The bank/lender will take part of my future appreciation. Prior to HUD's involvement in the reverse mortgage industry in the late 1980's, some loans hid have a "shared appreciation" clause. However, Financial Freedom does not offer any reverse mortgages with this type of clause.

8) I don't need a reverse mortgage -- I'm not poor. Reverse mortgages are not only for those with financial needs, but for those who simply want to improve their standard of living or make plans for their estate.