Is a reverse mortgage right for me?
It can help if you want to stay in your Las Vegas or Henderson home, you have built up equity, and a monthly mortgage payment is the part that no longer fits. Some people use it to replace an existing mortgage. Some use it to make cash flow less tight. Some adult children use a call with me to help a parent look at it with clear eyes.
It may not fit if you plan to move soon. Selling later means you still pay closing costs now, and the balance will have grown. It also may not fit if keeping up with property taxes, insurance, and repairs is already a stretch. Those bills do not go away. If you cannot keep them current, you can lose the home.
A reverse mortgage is a loan, not a gift. Your heirs inherit the house subject to the loan. If the goal is to leave the home with no mortgage on it, this is probably the wrong tool.
How it works
1. Talk through the real goal
We start with why you are looking at this. Staying in the home, helping cash flow, buying a different house, or helping a parent think it through. No pitch. Just an honest fit check.
2. Complete HUD-approved counseling
For a HECM, counseling with a HUD-approved reverse mortgage counselor is required before the loan can move forward. I will point you to HUD's list. The counselor is independent of me. They cover costs, alternatives, and how the loan affects people who live in the home.
3. Application, appraisal, and a financial assessment
If you still want to proceed, we apply. The home is appraised. The lender reviews whether you can keep up with property charges. An existing mortgage on the home generally has to be paid off as part of the reverse mortgage.
4. Closing
You review the numbers in writing. On most reverse mortgages you have a short window after closing to cancel in writing if you change your mind. After closing, title stays in your name.
5. Living with the loan
You typically do not make monthly principal and interest payments. Interest and fees are added to the balance, so the amount you owe grows over time. You still pay property taxes, insurance, and upkeep, and the home has to remain your primary residence.
Loan options
HECM refinance
A Home Equity Conversion Mortgage, or HECM, is the FHA-insured reverse mortgage. It is the most common type. Eligible homeowners are 62 or older. You can use it to pay off an existing mortgage and tap leftover equity. You typically make no monthly principal and interest payment. You still pay property taxes, insurance, and upkeep, and the home has to remain your primary residence.
HECM for Purchase
HECM for Purchase lets eligible borrowers buy a new primary residence with HECM proceeds. You still bring cash for the gap between the loan amount and the purchase price, plus closing costs. You must occupy the home as your primary residence. Taxes, insurance, and upkeep still apply. Not every property type is eligible.
Jumbo, or proprietary, reverse mortgages
The federal HECM program only counts a limited portion of a home's value when it sets how much you can borrow. That matters in parts of Las Vegas and Henderson where home values sit well above a typical HECM cap. Owners of higher-value homes sometimes look at jumbo reverse mortgages, which are proprietary products, not FHA-insured HECMs. Terms vary by lender. I will walk you through what is actually available for your property rather than promising a product that may not fit.
How it compares
None of these is automatically better. The right one depends on whether you can make a payment, whether you want to stay, and what you want left for the people who come after you.
| Reverse mortgage | HELOC | Cash-out refinance | Sell and downsize | |
|---|---|---|---|---|
| Payments | Typically no monthly principal and interest. You still pay taxes, insurance, and upkeep. | Monthly payments on what you draw. | A new monthly mortgage payment on the full new loan. | No mortgage if you buy the next home with cash, or a smaller payment if you finance less. |
| Loan balance | The balance usually grows as interest and fees are added. | You repay what you borrow, on top of your first mortgage. | Your first mortgage is replaced by a new, usually larger, loan. | The old loan is paid off when you sell. |
| Who it tends to suit | Homeowners who want to stay, tap equity, and not take on a new monthly mortgage payment. | Homeowners who can make payments and want a revolving line they can use over time. | Homeowners who can afford a new payment and want a lump sum. | People who are ready to move and want to unlock equity by selling. |
| Main tradeoff | Costs now, a growing balance, less leftover for heirs, and strict occupancy rules. | A new payment, and you still have your first mortgage. | You give up the old first mortgage and take on a new payment. | You leave the home. Moving has its own cost and stress. |
On a phone, swipe the table sideways. You can also read HELOC vs cash-out refinance, the home equity guide, and when a refinance makes sense.
Costs and tradeoffs
HECMs have closing costs, and they have FHA mortgage insurance premiums, both an upfront premium and an ongoing premium added to the balance. Origination and third-party costs such as appraisal and title are part of the picture too. You can pay some costs in cash or roll them into the loan. Rolling them in means you take home less.
Interest accrues. Fees can accrue. The loan balance grows over time, which is the opposite of a regular mortgage you pay down each month. The longer the loan is open, the more you typically owe, and the less equity is left.
You must keep paying property taxes, homeowners insurance, and upkeep. The home has to remain your primary residence. If those obligations are not met, or you no longer live there, the loan can come due. That is how people lose a home with a reverse mortgage. It is not a trick of the product. It is the loan rules.
That growing balance is also what heirs feel. They can keep the home by paying the loan off, or sell it. On a HECM they are not generally on the hook for a shortage above the home's value when they sell under the program rules, but they also may inherit less than they expected. Talk about that before anyone signs.
Non-borrowing spouse protections come from HUD, not from a sales pitch. A spouse who is not on the loan may be able to stay if they qualify as an Eligible Non-Borrowing Spouse and keep the home as their primary residence while paying property charges. If they do not qualify, the loan can come due when the borrower dies. Put both names on the loan when that is the honest plan.
For adult children and family
If your parent is looking at this, sit in on the call. You do not need a finance background. You need the same facts they need.
Ask, out loud:
- Can they keep paying taxes, insurance, and repairs?
- Do they plan to stay in this house?
- Who lives there now, and who is on title?
- What should happen to the home later?
- Have they completed HUD-approved counseling yet?
Everyone who lives in the home, or who expects to inherit it, should understand that this is a loan against the house. I would rather have an awkward family conversation now than a surprise later. Adult children are welcome on the call. Contact me and we will set a time that works.
Higher-value homes in Las Vegas and Henderson
A lot of my work is with higher-value homes across the valley, including Henderson. A reverse mortgage on a property like that is still a loan with the same core tradeoffs: costs, a growing balance, and rules about living in the home and paying property charges.
Because a HECM only counts a limited portion of value, a jumbo reverse mortgage is sometimes the product worth comparing. I will tell you when it is not. Terms vary by lender, and I will not pretend every luxury home is a match. If you want the regular jumbo purchase and refinance picture as well, start with jumbo loans explained.
About Mike
I am Mike Prenesti, NMLS #1033445. I have 18+ years in mortgage lending, and I work with C2 Financial Corporation (Corporate NMLS #135622).
I will explain this the way I would explain it to my own family: what it does, what it costs, and when I would walk away. Read more on the About page, or go straight to Contact.
Frequently asked questions
Yes. You can lose the home if you stop meeting the loan rules. On a HECM you still have to pay property taxes and homeowners insurance on time, keep the home in good repair, and live there as your primary residence. If those obligations are not met, the loan can become due and the lender can move toward foreclosure.
You do. Title stays in your name. The lender has a lien on the property, the same idea as a regular mortgage, until the loan is paid back.
Yes. A reverse mortgage does not replace property taxes, homeowners insurance, flood insurance if it applies, or upkeep. You remain responsible for those costs. Some HECM borrowers have a set-aside from the loan to help pay taxes and insurance. If that reserve runs out, you still have to pay.
If your spouse is a co-borrower, they can usually stay in the home as long as they keep meeting the same loan rules. If they are not on the loan, HUD has a separate Eligible Non-Borrowing Spouse path that can let a qualifying spouse remain after the borrower dies, without taking over the reverse mortgage proceeds. That protection is not automatic. HUD generally requires that the spouse was married to the borrower when the loan was signed, was named in the loan documents, lives in the home as a primary residence, and keeps paying property charges and upkeep.
When the last borrower, and any eligible non-borrowing spouse, has died or permanently left, the loan becomes due. Heirs can keep the home by paying off the balance, or sell it, repay the loan, and keep leftover equity if there is any. On a HECM, if the balance is higher than the home's value, heirs who sell generally repay the lesser of the full balance or 95 percent of the appraised value. The rest is covered by FHA mortgage insurance, not by the family writing a check for the gap.
A HELOC is a line of credit you draw from, and you make monthly payments on what you borrow. A reverse mortgage typically has no monthly principal and interest payment, but the balance grows as interest and fees are added, and you must still pay taxes, insurance, and upkeep while living in the home as your primary residence.
On a HECM you typically do not make monthly principal and interest payments. You still pay property taxes, homeowners insurance, and upkeep. If you do not, the loan can come due.
For a HECM, you must complete counseling with a HUD-approved reverse mortgage counselor before the loan can move forward. The counselor walks through how the loan works, costs, other options, and how it can affect a spouse or other people living in the home. Non-borrowing spouses and non-borrowing owners must receive that counseling too. Agencies may charge a counseling fee and have to explain charges first.
Yes, through HECM for Purchase, which lets eligible borrowers buy a new primary residence with HECM proceeds. You still need cash for the difference between the loan proceeds and the purchase price, plus closing costs. You must occupy the home as your primary residence, and you still pay taxes, insurance, and upkeep. Not every property type qualifies.
The federal HECM program only counts a limited portion of a home's value when it sets how much you can borrow. Owners of higher-value homes sometimes look at jumbo, or proprietary, reverse mortgages instead. Those products are not FHA-insured HECMs, and terms vary by lender.
Sources and last verified
Program rules on this page were checked against official HUD and CFPB materials on November 6, 2026. Figures that change, such as FHA mortgage insurance rates and lending limits, are described in words rather than outdated numbers.
- HUD: FHA Reverse Mortgage for Seniors (HECM)
- 24 CFR 206.41, HECM counseling
- CFPB: Reverse mortgage loans
- CFPB: What is a reverse mortgage?
- CFPB: Borrower responsibilities
- CFPB: When the loan must be repaid
- CFPB: How much a reverse mortgage costs
- CFPB: HECM for Purchase
- CFPB: What happens when the borrower dies (including HUD Eligible Non-Borrowing Spouse rules)
- CFPB: What heirs can do
This page is educational. It is not a loan offer, a commitment to lend, or legal advice. C2 Financial Corporation, Corporate NMLS #135622. Mike Prenesti, NMLS #1033445.