If you’re 62 or older and own a home here, you may be eligible for a reverse mortgage in Las Vegas as a way to add monthly income to your household. But it isn’t free, and you should know what you’re getting into:
* A reverse mortgage, like its name, is the opposite of a traditional one. It’s a loan on the home’s equity, which is paid to an eligible senior homeowner.
* You don’t have to repay the loan until the owner moves or dies.
* The Federal Housing Administration (FHA) insures the loan.
* First you have to apply so the lending institution can decide if you have enough equity and you qualify – and then how much of a loan you might be able to get.
* There must be no liens on the home at origination, although some lenders will allow the reverse mortgage to be used to pay them off.
* Generally, your heirs have six months to pay the mortgage or sell the house after the owner dies or moves.
* The equity they inherit will be reduced by the payments made in the reverse mortgage and by how much the property appreciates.
* But the heirs will not be personally responsible for the debt. They can pay off the loan, refinance the property or sell it.
— By Hal DeKeyser
Free consumer’s guide on buying a new Las Vegas home
Want a FREE advance copy of Hal DeKeyser’s upcoming book on how to buy a new home in Las Vegas? It walks buyers through all the steps in the process, from figuring out what kind of home you want to finding financing, shopping the models, monitoring construction to what you do in the first year. It’s a helpful guide even for those who have done this before. To get one, simply email Hal.DeKeyser@gmail.com with “I want the book” in the subject line. (No obligation.)