5 Common Myths About Reverse Mortgages
Reverse mortgages are often misunderstood, especially here in Tucson, where many retirees are looking for smart ways to make the most of their home equity. If you’ve heard conflicting information or rumours, you’re not alone. Let’s set the record straight by debunking five of the most common myths with insights from our Tucson-based NOVA® Home Loans reverse mortgage specialists.
Myth #1: “I’ll lose ownership of my home.”
Fact: You remain the owner of your home. A reverse mortgage does not transfer the deed to the lender. It simply allows you to access your home equity while keeping your name on the title. You still have full control of your property, and you can choose to sell it, refinance it, or pass it on to your heirs.
Myth #2: “My heirs will be stuck with the debt.”
Fact: Reverse mortgages are non-recourse loans, meaning your heirs will never owe more than the value of the home, even if the loan balance exceeds it. They have options; they can sell the home, pay off the loan if they choose to keep it, or simply walk away without taking on the remaining debt.
Myth #3: “Only people in financial trouble use reverse mortgages.”
Fact: Many financially stable homeowners choose reverse mortgages as a strategic tool. They may use them to supplement retirement income, eliminate an existing mortgage payment, or fund home improvements. In a city like Tucson, where aging in place matters to so many, a reverse mortgage can help retirees enjoy greater freedom and financial flexibility on their own terms.
Myth #4: “I won’t qualify unless I own my home outright.”
Fact: You don’t need to own your home free and clear to qualify. As long as you have enough equity, you may be eligible, even if you still have a mortgage. We’ve helped many clients in Oro Valley and Green Valley qualify with a remaining mortgage balance.
Curious about your eligibility? Try our Reverse Mortgage Calculator to see how much you could qualify for.
Myth #5: “It’s too risky or complicated.”
Fact: Reverse mortgages are closely regulated by HUD and the FHA, and every borrower is required to complete independent third-party counseling to ensure they fully understand the process. With the right guidance, a reverse mortgage can be a safe and strategic financial decision.
See If A Reverse Mortgage Makes Sense For Your Finances with NOVA Home Loans
If you’re a Tucson homeowner aged 62 or older, don’t let myths hold you back from making the most of your home equity.. Connect with our local reverse mortgage specialists to get clear, personalized guidance and see if a reverse mortgage could be the right fit for you.
The Home Equity Conversion Mortgage (HECM) is insured by the Federal Housing Administration (FHA). A HECM is a non-recourse loan, meaning you or your heirs will not owe more than the home’s value at the time the loan is repaid, as long as loan terms are met. To qualify for a HECM, you must be 62 or older, own your home outright or have a low mortgage balance, live in the home as your primary residence, and complete HUD-approved counseling. No monthly mortgage payments are required for a HECM, but you must pay property taxes, homeowners insurance, and maintain the home to comply with loan terms. The HECM loan becomes due when the last surviving borrower moves out, sells the home, passes away, or fails to meet loan terms such as paying property taxes or insurance. HUD-approved counseling is required before applying for a HECM to ensure you understand the loan’s terms and obligations. This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation. A HECM is a loan, not a government benefit, and must be repaid according to its terms. HECM loans include fees such as mortgage insurance premiums, origination fees, and closing costs, which can be financed into the loan, reducing the net amount available. By providing your contact information, you consent to being contacted by NOVA® Home Loans and its partners for marketing purposes, including through automated technology or prerecorded messages. Consent is not required for purchase, and you may opt out at any time. These materials are not from HUD or FHA and were not approved by HUD or a government agency.