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The 6 biggest reverse mortgage myths
Every one of these comes up in a first conversation. Here's the statement, and here's the correction.
Myth 01
"The bank takes my house."
Fact
You stay on title and own your home as long as you meet the loan terms — taxes, insurance, upkeep. The lender holds a lien, much like your first mortgage did.
Myth 02
"I can be kicked out."
Fact
As long as you live in the home and meet the loan obligations — property taxes, insurance, and upkeep — the loan doesn't come due.
Myth 03
"My kids will inherit my debt."
Fact
HECMs are non-recourse. Heirs never owe more than the home's value — they can sell, refinance, or walk away.
Myth 04
"It's income, so I'll owe taxes on it."
Fact
Proceeds are loan advances, not income. Consult your tax advisor about your specific situation.
Myth 05
"If something happens to me, my spouse gets thrown out of the house."
Fact
Years ago, this could happen — and federal rules changed in 2014 because of it. Today, an eligible non-borrowing spouse may remain in the home, as long as taxes, insurance, and upkeep continue. It's one of the first protections we structure for.
Myth 06
"Reverse mortgages are for desperate people."
Fact
They're increasingly used by financial planners as a coordinated retirement tool: standby credit lines, tax-aware withdrawal strategies, and bridge income.
Still skeptical? That's a reasonable place to start.
Run your own numbers first — nothing is required of you.
See what you may qualify forPrefer to talk it through? (720) 335-7100 · Tanner@EmpireHomeLoans.com