Many people hesitate to explore reverse mortgages because of persistent fears and rumors. The most common worry? That taking out a reverse mortgage could mean their heirs won’t inherit the home. These myths exist because the reverse mortgage space hasn’t always been clear—but Zenith is here to cut through the confusion and share the facts you need to know.
We’ve expanded on the most common myths from our Reverse Mortgage Guide to address additional questions we hear from homeowners and their families. Here are five of the biggest myths—and the truth behind each one.
Myth #1: “My Heirs Won’t Inherit the Home”
Many seniors fear that taking out a reverse mortgage means the bank will take the home when they pass, leaving nothing for their family.
In reality, you remain the homeowner. Your name stays on the title, and when you pass away, your heirs inherit the home and any remaining equity after the reverse mortgage is repaid.
Reality Check: The bank doesn’t keep your home—your heirs do.
Myth #2: “My Heirs Will Be Stuck With the Debt”
Adult children often worry they’ll be on the hook for paying off the loan if the home’s value isn’t enough to cover the balance.
Reverse mortgages are non-recourse loans, which means your heirs are never personally responsible for the debt. If the home sells for less than the loan balance, FHA insurance covers the difference—not your family.
Reality Check: No debt is passed down. Your family is protected.
Myth #3: “Reverse Mortgages Are a Last Resort”
Some people think reverse mortgages are only for those who are desperate or struggling financially.
In truth, many financially secure homeowners use reverse mortgages strategically—to preserve other investments, delay Social Security, or cover unexpected expenses without tapping retirement savings.
Reality Check: Reverse mortgages can be a smart financial tool, not just a fallback plan.
Myth #4: “I’ll Lose My Government Benefits”
A common concern is that reverse mortgage proceeds could cause someone to lose benefits like Social Security or Medicare. Most benefits, including Social Security and Medicare, aren’t affected by reverse mortgage funds.
Reality Check: Reverse mortgages don’t cancel your benefits, but it’s wise to plan carefully if you receive need-based aid.
Myth #5: “I Could Be Kicked Out of My Home”
Some fear that taking a reverse mortgage puts them at risk of losing their home unexpectedly.
As long as you meet basic obligations—like living in the home as your primary residence, paying property taxes, homeowners insurance, and keeping the home in reasonable condition—you retain full control.
Reality Check: You stay in your home, with protections, as long as you meet the agreed-upon requirements.
The Bottom Line
Reverse mortgages aren’t for everyone, but they’re far from the frightening products they’re sometimes made out to be. By separating fact from fiction, you can make a confident decision about whether a reverse mortgage fits into your retirement plan.
Want to dig deeper into how reverse mortgages work and whether one could be right for you? Learn more in our full guide to reverse mortgages or schedule a no-pressure call with our team to get answers specific to your situation.
