9 Myths Hawaii Seniors Still Believe About Reverse Mortgages (2025 Update)
Many Hawaii seniors still believe outdated reverse mortgage myths. Here are 9 common misconceptions and the real facts every kupuna must know in 2025.
Local Reverse Mortgage Guidance You Can Trust
Honest, Easy-to-Understand Advice for Kupuna & ʻOhana
AI-Powered Estimates Personalized for Hawaiʻi Homeowners
The Real Facts Every Kupuna Should Know Before Making a Decision
Reverse mortgages have been in Hawaiʻi for decades — but many kupuna still base their decisions on old information, hearsay, or misunderstandings.
The truth is: the modern reverse mortgage (HECM) in 2025 is safer, more regulated, and more flexible than ever before.
Here are the 9 most common myths Hawaii seniors still believe — and the real facts behind them.
Myth #1: “The bank takes my home if I get a reverse mortgage.”
FACT: You stay on the title the entire time.
You never give up ownership of your home with a reverse mortgage.
Your name stays on the deed — not the bank’s.
A reverse mortgage is simply a loan secured by your home, just like a regular mortgage, but with no monthly payments required.
Heirs still inherit the home, and they can decide:
- keep it by paying the loan
- refinance it
- or sell it and keep any remaining equity
Myth #2: “I could lose my home.”
FACT: A reverse mortgage only requires you to:
- live in the home as your primary residence
- pay property taxes
- pay homeowner’s insurance
- maintain basic property condition
As long as you do these things, you cannot lose your home due to the reverse mortgage.
This is the same requirement as a traditional mortgage.
Myth #3: “I’ll owe more than my home is worth.”
FACT: Reverse mortgages are non-recourse.
This means you will never owe more than the value of your home — even if the balance grows.
If the home sells for less than the loan amount, FHA insurance covers the difference, not you or your family.
This is one of the strongest protections for Hawaii seniors.
Myth #4: “My kids will be left with debt.”
FACT: Children are never responsible for the loan.
Heirs cannot inherit reverse mortgage debt.
They can either:
- sell the home and keep any remaining equity
- pay off the loan at 95% of the home’s appraised value
- or walk away — with zero financial responsibility
This is why many Hawaii families use reverse mortgages as part of multigenerational planning.
Myth #5: “Reverse mortgages are only for people who are broke.”
FACT: Today, reverse mortgages are a retirement planning tool.
More Hawaii seniors with strong financial profiles are using reverse mortgages strategically to:
- delay Social Security
- reduce retirement withdrawals
- create a long-term line of credit
- cover rising costs without touching savings
- pay medical or caregiving expenses
- fund home repairs & upgrades
Financial advisors now recommend reverse mortgages as part of a smart retirement income plan, not a last resort.
Myth #6: “I can’t get one if I still have a mortgage.”
FACT: You can.
Most Hawaii seniors with reverse mortgages still had a remaining balance on their traditional mortgage.
The reverse mortgage simply pays off the existing mortgage, and the senior keeps the remaining funds.
This removes monthly mortgage payments, which is often the main goal.
Myth #7: “My monthly income is too low, so I won’t qualify.”
FACT: Income requirements are flexible.
Reverse mortgage approval focuses more on:
- home value
- age
- equity
- ability to maintain taxes/insurance
It does not require high income like traditional loans do.
This is why kupuna on fixed incomes often qualify.
Myth #8: “Reverse mortgages are a scam.”
FACT: Reverse mortgages are federally regulated and heavily audited.
Modern HECMs include:
- mandatory counseling by a HUD-approved counselor
- federal FHA mortgage insurance protections
- strict lending laws
- non-recourse guarantees
- limits on fees
- transparent disclosures
In 2025, reverse mortgages are one of the most regulated financial products in the U.S. housing market.
Myth #9: “The loan grows too fast — I won’t have anything left.”
FACT: Your home value usually grows too.
In Hawaii, property values historically rise faster than most states.
Even with loan growth, many seniors still maintain significant equity because:
- Hawaii home appreciation is strong
- property scarcity boosts long-term values
- seniors often don’t borrow the full amount
- line-of-credit options only grow if unused
And remember — you can never owe more than the home’s value.
The Truth: Reverse Mortgages Are Safer and Smarter in 2025
After clearing up the myths, here’s what’s actually true:
- You stay in full control of your home
- Your children do not inherit debt
- You never owe more than the home is worth
- There are no monthly mortgage payments
- Funds are tax-free
- The line of credit can grow over time
- It’s a powerful tool for aging in place in Hawaiʻi
Most importantly, it allows kupuna to live with security, stay in their home, and avoid financial stress in one of the most expensive states in the nation.
Want the Real Numbers for YOUR Hawaii Home?
Get your personalized reverse mortgage estimate in 60 seconds — no credit check, no obligations.
MENU
QUICK LINK
CONTACT
AI Reverse Mortgage Hawaii
Clear Reverse Mortgage Guidance for Hawaii Seniors
Percy Ihara
Reverse Mortgage Specialist
NML#: 582944
Phone: +1(808)234-3117
Email: percy@c2hawaii.com
Address: Pauahi Tower, 1003 Bishop St Suite 2700-42, Honolulu, HI 96813
Serving ALL Hawaiian Islands: Kauai, Oahu, Molokai, Lanai, Maui, and Big Island