Reverse Mortgage Texas 

Retirement life can be challenging. When you reach the age of seniority or 62 years old in the US, you’ll have the most extended holiday of your life. You’ll say goodbye to going to work on Mondays and miss the fun of leaving work on Fridays. After all, you’re retired.

However, retirement also means that you have limited sources of income. You may have insurance, pensions, and investments, but they can be inadequate if you spend a lot on healthcare, travel, or family. 

The good news is you can access additional financing through a reverse mortgage. Capital Home Mortgage offers reverse mortgages in Texas. Talk to our Texas loan officers to discover how we can help you decide if a reverse is right for you.

What is a Reverse Mortgage?

A reverse mortgage is a mortgage program where the borrower gives up the equity in their home in exchange for a fixed amount of cash against the equity in their home. The critical factor here is that the borrower owns and occupies the property as a primary residence. Reverse mortgages provide qualified senior citizens with a steady stream of additional cash flow during retirement.

As part of the reverse mortgage agreement, the lender could foreclose the house if the borrower violates the mortgage terms or passes away. 

This mortgage program is a great way to realize the value of your investment. Homes are still investments, and most people don’t enjoy their value because they can’t sell them. With reverse mortgages, you can borrow against the value of your home, receive money from the mortgage, and get to keep staying in your house.

Requirements for a Reverse Mortgage

The primary requirement is that you need to be at least 62 years old to qualify. You must also ensure enough home equity if you pass the age requirement. 

These are the two critical requirements, but lenders may impose additional requirements as they deem fit. For example, some lenders require HUD counseling for certain reverse mortgage types or higher home equity ownership.

Reverse Mortgage Types

The most popular of all reverse mortgages is the Home Equity Conversion Mortgage or HECM. This mortgage type populates the reverse mortgage market because it has no restrictions. In other words, you get to use the money in any way you want. HECMs have government backing, so it is accessible to many Americans.

Some properties may have high values that are beyond the mortgage limits. You can’t get a HECM for these properties. Instead, you need to apply for a proprietary reverse mortgage or jumbo reverse mortgage. It’s like HECM but can accept properties beyond conforming loan limits.

The last type is the single-purpose reverse mortgage. This reverse mortgage is not a favorite because it restricts mortgage proceeds usage. You’ll usually get this type of mortgage in nonprofit lending institutions. As to the use of proceeds, there is a list of allowed usages only.

Get a Reverse Mortgage Today

Apply for a Texas reverse mortgage at Capital Home Mortgage. Our direct mortgage lending process enables us to provide straightforward loan applications and professional assistance every step of the way. Call our experienced loan officers today at (800) 960-4565.