Reverse Mortgages - Reverse Mortgage Home Loans

A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:

all at once, in a single lump sum of cash;
as a regular monthly cash advance;
as a "creditline" account that lets you decide when and how much of your available cash is paid to you; or
as a combination of these payment methods.

No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and generally all of the owners on title to the home must be 62 years of age or older.

The Home Equity Conversion Mortgage (HECM) is the only reverse mortgage insured by the federal government. HECM loans are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). The FHA tells HECM lenders how much they can lend you, based on your age and your home's value. The HECM program limits your loan costs, and the FHA guarantees that lenders will meet their obligations.

To be eligible for a HECM loan:

you, and any other current owners of your home, must be aged 62 or over, and live in your home as a principal residence;
your home must be a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Some manufactured housing is eligible, but cooperatives and most mobile homes are not;
your home must be at least one year old and meet HUD's minimum property standards, but you can use the HECM to pay for repairs that may be required; and
you must discuss the program with a counselor from a HUD-approved counseling agency.

As with most reverse mortgages, you must repay a HECM loan in full when the last surviving borrower dies or sells the home. It also may become due if:

you allow the property to deteriorate, except for reasonable wear and tear, and you fail to correct the problem; or
all borrowers permanently move to a new principal residence; or
the last surviving borrower fails to live in the home for 12 months in a row because of physical or mental illness; or
you fail to pay property taxes or hazard insurance, or violate any other borrower obligation.

[ Las Vegas Homes Menu ] [ Las Vegas Site Search] [ Contact Us! ]

Return to Las Vegas Homes

Reverse Mortgages - Las Vegas Mortgages - Las Vegas Home Loans