Texas Reverse Mortgages

Texas Reverse Mortgages: Important Information

As the baby boomer generation gets older, many seniors in Texas are searching for more information about reverse mortgages and what reverse mortgage programs are available.  They are searching for information such as what reverse mortgage programs are available, what are the costs involved, are you required to pay the money back, are you required to move out of your house and probably many more questions than just those few.

A few highlights of the Texas FHA reverse mortgage program include:

• No mortgage payments required as long as you live in the home
• Access your cash in one of multiple ways: line of credit, monthly installments or a lump sum
• Interest rates for the reverse mortgage program can be either fixed or variable
• Texas reverse mortgage counseling can be done by an FHA approved counselor over the phone
• An appraisal is usually $350 and can be paid to the appraiser directly
• All other fees and costs can be put into the Texas reverse mortgage so no out-of-pocket costs are required

Texas FHA Reverse Mortgage Program Highlights

The FHA reverse mortgage program is the only reverse mortgage program available in Texas and is a federally-insured home loan that allows Texas seniors to convert a portion of their home’s equity into cash. The equity can be paid to directly to the senior in any one of three ways:

1. in one large lump sum
2. in monthly term or lifetime payments
3. in a line of credit held in an interest bearing account until the funds are needed

With a Texas FHA reverse mortgage, unlike a traditional home equity loan or second mortgage, NO REPAYMENT of the loan is necessary, as long as the senior lives in the home.

Texas FHA Reverse Mortgage Program Requirements

• Seniors must be Age 62 years or older
• You must have equity in the home to qualify
• You must occupy the home as your primary residence
• You must attend an Texas reverse mortgage counseling session (FHA counselor)
• You must keep the home in good repair

All money that a senior receives from the Texas reverse mortgage is tax-free – so it is a great source of tax-free retirement income.

Texas FHA Reverse Mortgage: The First Step

For those seniors who are interested in learning if a Texas FHA reverse mortgage is right for them, the first step is to be sure to speak with a loan officer who has experience in the FHA reverse mortgage programs and can explain how FHA reverse mortgages work.

If you have questions about the Texas reverse mortgage program, contact one of our FHA reverse mortgage experts at the toll free number listed above.