Houston Reverse Mortgage

Got some equity built up in your home? You can use that to obtain financing through a reverse mortgage. 

You can think of a reverse mortgage as a loan against the value of your home. If your net worth is tied up to your home, getting a reverse mortgage can convert the value of your home to cash. However, you must first build high equity in your home and be 62 years or older before you can qualify for a reverse mortgage. 

Capital Home Mortgage is a Houston reverse mortgage lender. Our HUD-certified reverse mortgage counselors can walk you through the steps of obtaining this type of loan. But first, let’s explain what reverse mortgages are all about. 

How Reverse Mortgages Work

In a reverse mortgage arrangement, the borrower receives money from the lender on a monthly, quarterly, annual, or lump sum basis depending on the agreement. 

Reverse mortgages provide additional cash flow to homeowners with high home equity. If the homeowner dies or leaves the property, the lender has the right to sell the house and take its proceeds as payment for amortization payments.

Benefits of Reverse Home Mortgage in Houston

Reverse home mortgages let you convert your home equity into cash. Converting it into cash is one way of enjoying your investment in your home. 

Another benefit would be additional cash flow. Seniors aged 62 or older can utilize reverse mortgages to have extra cash flow during retirement and enjoy their homes’ value. 

Capital Home Mortgage offers three types of Houston reverse mortgage programs. Let’s go over them in the following sections. 

Single-purpose Reverse Mortgage

A single-purpose reverse mortgage is the standard reverse mortgage without government backing. You can access this mortgage program if offered by state, local, and nonprofit agencies. 

This program is not as popular because lenders impose fund usage limitations. For interest rates, lenders place a margin above the base rates. If the index rate is 2% and the lender’s margin is 2%, the interest rate would be 4%. 

HECM Reverse Mortgage

HECM or Home Equity Conversion Mortgage dominates the reverse mortgage market because there are no restrictions on fund usage. You can use the fund for any purpose, unlike single-purpose reverse mortgages.

To qualify for the HECM program, the borrower must:

• Be at least 62 years or older

• Live at the property as their primary residence

• Complete the HUD counseling program with a HUD-certified counselor

• Meet required home equity values

Aside from borrower requirements, the property being applied for a HECM must:

• Be a single-family home or two- to four-unit home with one being occupied by the applicant

• Be approved by the HUD and FHA

Proprietary Reverse Mortgage

A proprietary reverse mortgage is like HECM but not federally insured. With this type of mortgage, you can borrow against your home’s equity, pay off the outstanding mortgage balance, and take the excess cash. Since proprietary reverse mortgages don’t have general backing, they usually have high-interest rates.

Apply For A Houston Reverse Mortgage

Get a reverse mortgage from our reverse mortgage specialists. Capital Home Mortgage is committed to providing the best Houston reverse mortgage for your needs. 

Let’s discuss reverse mortgages to learn more about our application process, competitive rates, and low processing fees. Get in touch by calling (281) 674-7372 to speak with our loan officers.