Reverse Mortgages for Seniors in Texas

Reverse mortgages for seniors living in Texas are available for homeowners 62 years and older. All persons named on the title to your home must meet the minimum age requirement. There also needs to be substantial equity in your Texas home and it must be your primary place of residence. Reverse mortgages for seniors in Texas have become a popular option for retirees in need of supplemental income or a lump sum of cash to meet financial obligations or major expenses.

During the fiscal year 2007 there were 5,740 HECM (Home Equity Conversion Mortgage) reverse mortgages for seniors closed in the state of Texas. HECM loans are insured by FHA (Federal Housing Administration) and are by far the most popular choice for senior reverse mortgages in Texas, as well as nationally. HECM reverse mortgages offer you the most options for receiving your money and usually offer the highest loan amount. Maximum HECM loan amounts in Texas range from $200,160. to $218,595. Loan limits vary by the county where your property is located. Reverse mortgages for seniors in Texas represent 5.6% of the total number of these loans that were originated nationally in 2007.

If your Texas property includes a large amount of acreage, the value of your property will be discounted by the FHA appraiser. Generally, not more than 5 acres of land value will be included in the total appraised value when determining your loan amount and your loan to value ratio for loan purposes.

Access Home Assets

Reverse mortgages for seniors in Texas can be an effective way for cash strapped seniors to access an otherwise illiquid asset. If you were to tap into your home equity using any other type of mortgage or home equity line of credit you would be required to make monthly mortgage payments on the loan. However, with a reverse mortgage you do not make any monthly mortgage payments for as long as you continue living in your home as your primary residence.

Once you permanently move out or pass away, your home can be sold by your heirs or refinanced by them, in order to pay off the reverse mortgage. If your home is worth more money than the loan pay off amount, your estate receives the excess money. If your home is not worth as much as the amount owed on the reverse mortgage, your heirs DO NOT owe the balance. FHA pays the shortfall to the lender from the FHA mortgage insurance fund. Your house stands alone for the debt, not your heirs or your estate.

Use our free reverse mortgage calculator to find out if you have enough equity in your Texas home to qualify for this type of loan. If you have enough equity and would like to find out more about this unique financial planning tool for Texas seniors, request a complimentary benefit summary. There is no obligation to receive this information and no one will pressure you to make a decision. Find out today if reverse mortgages for seniors in Texas is something you can benefit from.

• Link To Texas AARP