What is a Reverse Mortgage

Understanding Reverse Mortgage and How it Can Work for You

A reverse mortgage is a special, federally mandated type of loan available to certain borrowers who meet specific qualifications. If you are 62 years old or older and a homeowner, you may be a candidate for this unique type of loan. At Texas Reverse Mortgage, Inc., our focus is helping senior Texans make the most of their lifetime financial achievements with flexible reverse mortgage options. If you are considering a reverse mortgage, also known as home equity conversion mortgage (HECM), we can help. If you are in Austin, Dallas, Fort Worth, San Antonio, Houston or surrounding areas, contact Texas Reverse Mortgage, Inc. We are here to simply answer your questions or set up a confidential conversation about your finances and unique goals to see if we can help.

The Basics of a Reverse Mortgage

A reverse mortgage is so called because rather than allowing you to slowly pay off a home, an HECM provides you with cash flow in return for the equity you’ve built in your home. This money can be used for all sorts of things, from supplemental monthly cash flow to purchasing a new home using your reverse mortgage. Seniors across the country enjoy reverse mortgages because they provide funds to people in return for the substantial investments they’ve made into purchasing a home.
You can receive payouts from your HECM in the form of a lump sum, a monthly payout or as a credit line, usually at a fixed interest rate. Your HECM is not due until you sell your home or die. It is important to note that, after your passing, your dependents will receive any equity left from the sale of your home after your loan has been paid. Even more importantly, if your home sells for less than the loan is worth, your dependents are not liable to pay a thing.

Eligibility for a Reverse Mortgage

You may be eligible for a reverse mortgage if:

  • You are 62 years of age or older.
  • You own your home and have fully paid it off or built a certain amount of equity in it.
  • You are able to pay for monthly housing costs other than mortgage, including insurance and taxes.
  • You are willing to undergo a financial assessment with an FHA approved lender and a counseling session.
  • You own a single family home, 2-4 unit property, a manufactured home built after June 1976 or a condominium or townhome.

Once we have determined you may be eligible to receive a reverse mortgage, we can begin the application process.

Limits and Payouts for HECM

The national HECM mortgage limit, set by the Federal Housing Administration, is $625,500. This means that is the maximum amount you can be paid out by your loan in exchange for the equity in your home. The amount that you will receive from your reverse mortgage is also affected by your age, your current interest rate, the amount you have already built in equity in your home and the amount it is appraised for. Typically, the more you have in equity and the older you are, the more you are eligible to receive. We have helped hundreds of clients in Austin, Dallas, Fort Worth, San Antonio and Houston with reverse mortgages. Contact us today to discuss how much you may receive from an HECM.

Start Your Journey Today

If you have been considering a reverse mortgage, the time to act is now. Our loan officers have more than 100 years of combined experience with reverse mortgage. The team at Texas Reverse Mortgage, Inc., truly cares about the people in Austin, Dallas, Fort Worth, San Antonio, Houston, and all over Texas. Let’s discuss your unique situation today.