Texas Reverse Mortgage

The Texas reverse mortgage loan option provides retirees, seniors, and the elderly in Texas with secure, reliable income during the best years of their lives.  Anyone over the age of 62 who owns a home with equity can qualify for this mortgage.  No credit scoring or income eligibility is required, and you don’t have to pay this loan back.  The money is sourced directly from your own home equity, allowing you to remain financially independent for the rest of your life

Reverse Mortgage Texas Information

As mentioned above, you must be at least 62 years of age to qualify for this loan type.  IF you qualify, you have the opportunity to take advantage of a unique financial instrument that is specifically designed to help senior homeowners better leverage their assets.  With reverse mortgages in Texas, your lender purchases ownership of your home equity from you.  You keep your home and your lender pays you cash for the equity.  All that you are giving up is the investment aspect of your home, which is less important for seniors and retirees than spendable income.

You can spend the money you receive as payment for your equity on anything you need.  You can buy a new car with it, take a vacation, set it aside for medical costs, or simply pay for daily living expenses during retirement.  Be aware, though, that you won’t have your equity to fall back on later if you select this option.  Gather as much reverse mortgage information as you can before making the decision to pursue this loan type.

You can arrange to receive the money from your lender in any of the following ways.

• As a lump sum at the start of the loan.  This sum will equal the full equity amount minus loan origination expenses.
• In monthly payments until the full amount of equity is depleted.  These monthly payments will last longer if you have more equity.
• As a credit line that you can access at any time.  You don’t have to pay this credit back.

You can combine any of these options to create a new, unique payout program.  The choice is up to you.

During and after a reverse mortgage, your lender owns the equity of your home but not the home itself.  Many seniors are skeptical of reverse mortgages because they’re concerned that taking out reverse mortgages will place their homes at risk.  This is not the case.  Your lender does not gain any ownership rights to your home in a reverse mortgage.

You can continue living in your home until the day you pass away or move out, and you aren’t even required to pay back anything to your lender.  When you die, your heirs will receive ownership of the home and the reverse mortgage loan amount will become due.  Most of the time, your heir will sell the home to pay back the loan.  If the home value has decreased and the sale amount is not sufficient to cover the loan amount, don’t worry.  Lenders can collect only as much as the home sells for.  The rest of the debt must be written off.  This is a federal reverse mortgage regulation.

The HUD maintains a list of Frequently Asked Questions pertaining to reverse mortgages.  If you have any confusion or uncertainty, feel free to read through this list to gain some insight.

Texas Reverse Mortgage Lenders

Texas is one of the top three reverse mortgage states in the nation.  Many lenders in the state are eager and willing to provide reverse mortgages, but these loans, as with all others, come at a price.  You’ll have to pay origination fees and closing costs, and these fees can add up swiftly when your equity is at stake.

Do some research.  Find the lender who charges the lowest fees and offers the lowest mortgage rates.  Contact at least four or five lenders in your part of the state and ask them for quotes on the prices they charge.  This is the best way to get an idea of what costs are associated with reverse mortgages in your area.

To learn more about the costs and steps involved in applying for one of these loans, read our reverse mortgage checklist and following the outline provided there.

About Texas

Texas, the Lone Star state, is the second largest state in the nation.  Texas has close ties to the American South due to its relation to the Confederacy during the Civil War.  The state's diverse economy includes industries such as energy, aeronautics, defense, and tourism.  The growth of its economy can be attributed to the availability of jobs within the state.  This solid financial foundation provides a starting point for many Texas homeowners.

Houston, Dallas, San Antonio, Austin, El Paso, Fort Worth, Arlington, Corpus Christi, Plano, and Garland are all large, impressive cities in the state of Texas.  The state offers a senior wellness program called ATW (Aging Texas Well) to help its seniors age comfortably, securely, and happily.  The purpose of this program is to ensure that government policies and services support healthy aging throughout the state.

This state is a great place for seniors and retirees to call home.  If you need to secure income for the next chapter of life, consider taking out a reverse mortgage.

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