I saw an ad for a no-payment reverse mortgage from the Department of Veterans Affairs (VA). Is this legitimate?

Some mortgage lenders run misleading ads directed at veterans that promise special deals, imply VA approval, or offer a “no-payment” reverse mortgage to attract older Americans desperate to stay in their homes.

You should look out for and avoid loans that advertise:

• Official-looking logos implying that the loan comes from a government agency like the VA or the Department of Housing and Urban Development (HUD). Government agencies guarantee some loans, but they do not lend directly.
• Promises of amazingly low rates. Offers of rates as low 1.9 percent for “VA refinancing” may turn out to only be in effect for a short period of time.
• Promises that a reverse mortgage will let veterans stay in their home payment-free. Typically, borrowers with these mortgages must still pay their taxes and insurance and could lose their homes if they don’t.
• Announcements of “pre-approval” and large amounts of cash or credit available to you. Generally, there’s no guarantee that a borrower will be approved for a loan or approved for a loan of a particular size this early in the process.

If you have a problem with a reverse mortgage, you can:

1. Connect with a U.S. Department of Housing and Urban Development (HUD)-approved housing counselor.
2. Submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).
3. Consult an attorney. If you need help finding an attorney, you can view this information which includes a list of legal aid services in your state, or you can find lawyer referrals in your county and state by visiting your local or state bar association’s website.