Reverse Mortgages in Houston
An Option for Those 62 Years and Over
The Ultimate Houston Reverse Mortgage Guide
Reverse mortgages come in three primary types, each with its own characteristics and considerations:
Single-Purpose Reverse Mortgage: State and local government agencies often provide single-purpose reverse mortgages. These loans come with specific limitations on how you can use the borrowed funds. Generally, they are intended for essential expenses such as home repairs or property tax payments. While these loans can be a lifeline for seniors facing financial constraints, they do not allow for expenditures on travel, entertainment, or personal items.
HECM Reverse Mortgage (Home Equity Conversion Mortgage): HECM reverse mortgages are the most prevalent type and are exclusively available through Federal Housing Administration (FHA) approved lenders. Initiated in 1988, these mortgages were designed to assist seniors in meeting their financial obligations.
HECM loans offer flexibility in how you can access your funds. You can opt for fixed monthly disbursements, establish a line of credit, or combine both methods. Additionally, HECMs can be used to purchase a primary residence, provided you can cover the difference between the HECM proceeds and the property's purchase price, along with closing costs.
It's worth noting that HECMs often entail high origination fees, mortgage insurance premiums, and maintenance expenses, which should be considered when evaluating this option.
Proprietary Reverse Mortgage: These loans typically provide the opportunity for a higher loan amount than what's available through federal programs. However, they come with potentially steep interest rates.
In some cases, proprietary reverse mortgages may allow you to borrow more than the equity in your home or exceed the federal limits. While this can seem advantageous, it carries a greater risk of accumulating substantial debt that may prove challenging to escape.
Before committing to any reverse mortgage, it's essential to carefully assess your financial needs, consider your long-term goals, and consult with a qualified financial advisor or counselor. This will help ensure that you make an informed decision that aligns with your unique circumstances and priorities.
Reverse Mortgages in Texas
Get Paid and Own Your Home
If you are aged 62 or older and need extra cash, a Reverse Mortgage or Home Equity Conversion Mortgage (HECM) can be a great option. At Flagstone Mortgage, we offer HECM products that allow you to convert a portion of your home equity into cash payments and/or a line of credit.
Our HECM products provide many benefits for seniors, including the continued ownership of their home without having to make a monthly mortgage payment*. Our Texas Reverse Mortgage options allow you to use the proceeds in any way you choose, from purchasing a new home to supplementing retirement income, paying medical bills, traveling, or moving closer to family members.
Our team of experienced reverse mortgage specialists can help you navigate the process, answer your questions, and guide you through every step. We understand that a reverse mortgage can be a complex decision, but we will provide you with all the information you need to make an informed decision.
Contact us today to learn more about our Texas Reverse Mortgage options and how they can benefit you. We'll provide you with a free, no-obligation consultation and help you determine if a reverse mortgage is right for you.
What Are The Benefits of a Reverse Mortgage?
Here are some benefits of a reverse mortgage:
Provides additional income: A reverse mortgage can provide seniors with additional income during their retirement years, which can help them maintain their lifestyle or cover unexpected expenses.
No monthly mortgage payments: With a reverse mortgage, borrowers do not have to make monthly mortgage payments. Instead, the loan is paid back when the borrower sells the home or passes away.
Continued home ownership: Reverse mortgage borrowers are able to continue living in their homes and retaining ownership, as long as they comply with the loan terms.
Flexible payment options: Borrowers can choose to receive their funds as a lump sum payment, a line of credit, or monthly payments.
Tax-free: The funds received from a reverse mortgage are typically not considered taxable income, which means borrowers can use the funds without worrying about a tax burden.
Government-insured: Most reverse mortgages are insured by the Federal Housing Administration (FHA), which provides an extra layer of protection for borrowers.
What Are the Requirements for a Texas Reverse Mortgage?
If you're 62 years or older and live in your home as your primary residence, you may qualify for a reverse mortgage. However, you must also meet several other requirements, such as:
Complete a HUD-approved counseling session: Before you can apply for a reverse mortgage, you must attend a counseling session with a HUD-approved counselor. The counselor will explain how the reverse mortgage works, its costs, and its benefits.
Must be able to pay homeowners taxes, insurance, and any applicable HOA fees: You'll still be responsible for paying property taxes, homeowners insurance, and any applicable homeowners association fees.
Must live in home as primary residence: Vacation homes and investment properties do not qualify for a reverse mortgage. You must live in the home you're seeking a reverse mortgage on as your primary residence.