Eight things to know about a reverse mortgage in Las Vegas
If you are a homeowner and older than 62, you might qualify for a reverse mortgage. Here are eight things you might need to know.
• The process begins with the application, an assessment is made of the property, and then a determination of how much of a loan the homeowner qualifies for.
• At the time of the loan origination the home must be free and clear of all existing liens.
• Funds from a reverse mortgage can go toward paying off any existing liens, with the remaining funds from the loan then being available to the borrower to use as they wish.
• Most reverse mortgages are insured by the Federal Housing Administration (FHA).
• The difference between a tradition home loan and a reverse mortgage is a traditional loan requires regular scheduled payments, with a reverse mortgage no repayment of the loan is required until the borrower dies or moves from the home.
• Once the homeowner has died or moved from the home, the estate generally has six months to sell the property or pay off the mortgage.
• Heirs to an estate with an existing reverse mortgage are not personally responsible for the debt, and can elect to sell the home, pay off the loan or refinance.
• A reverse mortgage may be the key for you to easily unlock the equity you have in your home