Let's follow the case of a family preparing for retirement in Henderson. They were concerned that relying solely on retirement and Social Security benefits would barely cover their monthly living expenses and unexpected medical costs. Although they had fully paid off their mortgage long ago and owned their home outright, they were reluctant to sell it and move to a smaller place. One option they considered was a reverse mortgage, specifically the HECM backed by the Federal Housing Administration.

Looking at the housing prices in Henderson, the average value of homes in the area is $460,983, which has dropped by 8 percent over the past year (zillow.com, 2026). In contrast, local real estate data shows that the median sale price of single-family homes has been recorded between $475,000 and $540,000 in recent months (nevadarealestategroup.com). If the value of their home is significant, it means they could potentially access a larger share through a reverse mortgage.

The first thing this family checked was the eligibility requirements. They needed to be at least 62 years old, the home had to be their primary residence, and they had to pass a financial assessment to ensure they could continue paying property taxes and insurance (hud.gov). Fortunately, Nevada is in a region with a relatively low property tax burden. The state average effective tax rate is about 0.49 percent (propertytaxrates.org, 2026), which is much lower than the national average of 0.89 percent. However, a lower tax rate does not eliminate the obligation to pay, and failing to do so could result in losing the home due to default.

The ability to create cash flow for living expenses without monthly repayment obligations was clearly attractive to this family. However, they also needed to consider that the initial costs, including origination fees and mortgage insurance premiums, are higher than those of traditional loans, and that over time, their equity in the home would decrease, reducing the assets they could leave to their children (consumerfinance.gov). Thanks to the non-recourse loan structure, heirs are not required to pay any excess if the home value decreases later, which is reassuring, but this does not prevent the reduction of equity itself.

Another option this family considered was receiving small financial support from their children to get by, as well as starting part-time work again. However, due to health issues, working was difficult, and they felt uncomfortable asking their children for help. Ultimately, utilizing the equity in their existing home remained the most realistic alternative, but they first needed to carefully calculate whether the amount they would receive monthly would be sufficient to cover their living expenses.

The percentage of the population aged 65 and older in Nevada is 16.9 percent, which is lower than the national average, but the Henderson and Las Vegas metropolitan area continues to be a popular destination for retirees (census.gov, estimated 2024).

Before making a decision, this family first received mandatory counseling through a HUD-approved counseling agency. The counseling covers costs and alternatives, so it is not advisable to rush into a contract without going through this process. I want to emphasize that concerns about living expenses after retirement are not issues to decide alone but should be discussed thoroughly with family.

For families like this one, where returning to work is difficult due to health issues, counseling agencies also provide information on local social welfare programs and tax relief options in addition to reverse mortgages. There may be specific support measures for low-income seniors in Clark County, including Henderson, so it is beneficial to explore these alternatives before deciding on a reverse mortgage. This article is not investment or legal advice, and it is recommended to consult with a professional before entering into any contracts.