Myth or Fact – Reverse Mortgages are a Scam

Reverse Mortgage Myth: Reverse mortgages are a scam

Reverse Mortgage Fact: No, reverse mortgages are not a scam. They are backed by the FHA and fully insured.

You don’t need to be afraid that reverse mortgages are inherently a scam—they’re not. They’re legit financial products, regulated heavily in the U.S., especially through the FHA’s Home Equity Conversion Mortgage (HECM) program,  About 50,000 reverse mortgages are issued yearly, and they’ve been around since the 1980s, helping people tap home equity without selling.

A reverse mortgage lets you borrow against your home’s value, get cash, and skip monthly payments—repayment waits until you sell  or die.

Reverse mortgages can be a useful financial tool for eligible seniors looking to supplement income, pay for healthcare, or cover living expenses, but they also come with complexities that should be thoroughly understood before proceeding.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts