What Is a Reverse Mortgage?
A reverse mortgage is available to seniors 62 or older and can enable homeowners to convert their home equity into cash to meet financial needs that appear during retirement age. This type of loan can be used to supplement income to pay for additional costs that become harder to cover after retirement.
You may choose a reverse mortgage if:
- You never want to have a home payment again
- Your income is low but your mortgage payment is daunting
- You are a senior who wants to save your home from foreclosure
- You need to cover medical expenses
- Your home is in need of improvement or repairs
- You need to supplement social security income
Once a homeowner qualifies, reverse mortgage loan proceeds can be disbursed in several different ways such as a single lump sum, monthly payments, unscheduled payments for when you need it most, and many others. The value of your home, your available equity in your home, your age, and interest rates will determine the maximum reverse mortgage loan amount you can receive.
- No required monthly mortgage payments to make while you are still in the home
- The lender makes payments to the borrower, rather than the other way around
- Approval is not based on income or credit
How Do I Qualify for a Reverse Mortgage in Texas?
There are 3 major qualifications for reverse mortgages.
- Age – All borrowers must be 62 or older.
- Occupancy – The subject property/home must be the primary residence.
- Property Type – It must be a single family residence, 1-4 unit
multi-family property, approved planned unit development, or condo.
Other considerations to make:
- Your home must have enough equity to cover any lien payoffs, loan fees, interest accrual and servicing fees.
- You are required by law to have third-party counseling prior to application.
- By law, borrowers can retract their loan or cancel within a three day period called a “three day right of rescission.”
- Homeowners must still be able to pay towards their property taxes, condominium fees and home owners insurance during the reverse mortgage loan term.
- Homeowners are not required to pay back their loan until the home is sold or vacated due to the death of the homeowner or if they decide to move to a nursing home.
- The interest rate of the loan is largely dependent upon the homeowner’s credit score.
Why Choose TexasLending.com for your reverse mortgage?
With TexasLending.com reverse mortgages, you know you’re making the smart choice. Here’s why:
- You will first speak with a government-approved counselor before you even apply – all reverse mortgages with TexasLending.com are safe.
- Your call will always be answered by a live person.
- Your personal information is private and secure because all of our employees are located in one office here in Texas.
- Your reverse loan can be approved in just 3 weeks because of our innovative E-signature technology.
Contact Texas Lending today to find out more about a reverse home mortgage. One of our highly professional and experienced people can talk to you about the advantages and disadvantages of taking out this type of loan. Call us or fill out the contact form on the right-hand side of this page, today.