Reverse mortgages (also known as Home Equity Conversion Mortgages, or HECMs) are one of the most misunderstood tools in the mortgage world. For the right homeowner, though, they can unlock freedom and financial peace of mind. Let’s clear the air.

Who Qualifies

  • You must be 62 years or older (both spouses, if married).
  • You need to be equity rich — the more equity you have, the better the program works.
  • Options include a HECM or, in Washington State, a HomeSafe Second (similar to a HELOC, but with no required monthly payment).

Myth #1: “The Bank Takes Your House”

This is the biggest fear people have — and it’s outdated. Years ago, some reverse mortgage companies abused the system. That ended in 2014, when Congress stepped in with strict consumer protections.

The truth:

  • You (and your co-borrower, if applicable) remain on the title.
  • The bank does not own your home.
  • When you pass away, your heirs have up to one year to reconcile the loan — and keep any remaining equity.

Myth #2: “They’re a Scam”

In the past, there were shady lenders. Some even forced seniors into bad loans or sold them off to banks demanding payments. That’s illegal now. Today, reverse mortgages are regulated, FHA-insured, and backed by the same federal protections as traditional loans.

Real-Life Example

Just last week, I helped a couple close on a reverse mortgage. Here’s what changed for them:

  • No more monthly mortgage payment → immediate relief on their budget.
  • A line of credit → funds they can tap as needed.
  • More savings → without draining retirement accounts.

They now call it their “Mortgage Freedom Day.”

Myth #3: “There Won’t Be Anything Left for My Kids”

Not true. Here’s how it really works:

  • Reverse mortgages only let you borrow a portion of your home’s equity.
  • FHA insurance prevents borrowers (and heirs) from ever owing more than the home is worth.
  • In many cases, there’s still equity left — one couple I worked with is projected to leave $250,000+ in equity to their heirs after 20 years.

The Bottom Line

Reverse mortgages aren’t for everyone. Only about 20% of the people I meet with actually qualify in a way that makes sense for their goals. But for the right situation, they can be life-changing.

I’m also launching free webinars soon to walk families and financial planners through the details — keep an eye on my website and social media for dates.

👉 Curious if a reverse mortgage is right for you (or your parents)? Let’s talk it through — no pressure, just clarity.

Larry Burgher – NMLS #1887785
Empire Home Loans
📱 Instagram/TikTok: @LarryTheHomeLender
💻 Facebook: Larry Burgher – Empire Home Loans

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