Once you have been approved to release a certain amount of equity from your home, the lender cannot ask for any back if your home loses value. If your home was to depreciate, this does not change any conditions of the loan. You are and your heirs are also protected if your home was to sell for less than the amount than you borrow on a reverse mortgage. As part of the loan, you are required to pay FHA insurance. This is a mandatory obligation, but you will not have to pay it out of pocket, it simply accrues on your original loan amount until the end of the loan. FHA insurance is a great initiative. It will protect you from owing more than your home is worth if it was to sell for less than your loan amount, and it will also step in to protect you if the lender was to go bust.

If you are looking for more information about the HECM reverse mortgage loan program, please feel free to request a free educational DVD, presented by Former Senator Fred Thompson. It will give you valuable information, so you can make an educated decision about this program.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.