By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 27, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: The biggest myths are that the bank takes your home, that heirs inherit debt, and that you can’t have a mortgage already. In fact, you keep title, HECMs are non-recourse, and an existing mortgage is simply paid off at closing. The real risks are costs, a growing balance, and failing to keep up with taxes, insurance and occupancy rules.
You keep title. The lender holds a lien.
Non-recourse means no one owes more than the home is worth.
An existing mortgage can be paid off with proceeds, if there’s enough equity.
Some retirees use a HECM line of credit as a planned retirement-income tool.
Taxes, insurance, HOA dues, maintenance and living in the home are required.
Upfront costs are higher than many loans. See reverse mortgage costs.
Only if the loan comes due under its terms, such as failure to pay taxes or insurance, or moving out.
No.
Yes, if the proceeds are enough to pay it off.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.