Question

All of the following statements about a reverse mortgage are accurate, EXCEPT:

a. a home equity conversion mortgage is an FHA approved reverse mortgage
b. a reverse mortgage allows a homeowner to receive a lump sum or monthly advance on a line of credit based on the equity in their home.
c. a homeowner must be age 62 or older to be eligible for a reverse mortgage
d. if the loan balance exceed the proceeds from the sale of the property, the owner or the owner's heirs must pay the difference to the lender.

Answer 1

A reverse mortgage is a type of loan that allows homeowners who are 62 years or older to access the equity in their homes.

Step-by-step explanation:

A reverse mortgage is a type of loan that allows homeowners who are 62 years or older to access the equity in their homes.

The loan is typically provided by a lender, and the homeowner can receive the loan proceeds in several different ways, including as a lump sum, a monthly advance, or a line of credit based on the equity in their home.

However, if the loan balance exceeds the proceeds from the sale of the property, the owner or the owner's heirs are not required to pay the difference to the lender.

Therefore, the accurate statement is that if the loan balance exceeds the proceeds from the sale of the property, the owner or the owner's heirs do not have to pay the difference to the lender.