How a Reverse Mortgage Works in Texas

A Texas reverse mortgage lets you turn some of your home’s value into tax-free cash. You can get the funds as a lump sum, monthly payments or a line of credit. The loan is repaid when you sell your home, move or pass away.

Apply for a Reverse Mortgage Loan in Texas

Follow these steps to apply for a reverse mortgage in Texas.

Step 1: Free Consultation with a Texas Reverse Mortgage Specialist

Schedule a consultation to review your reverse mortgage options and make sure it’s right for you.

Step 2: Mandatory Counseling with a HUD Agency

Before you can proceed, you must complete a counseling session with a HUD approved counselor to review the loan terms and financial impact.

Step 3: Apply for Reverse Mortgage

After counseling, submit your application with the required documents to move forward.

Step 4: Home Appraisal

A licensed appraiser will appraise your home to determine its value. This will help determine how much you can borrow.

Step 5: Underwriting and Approval

The lender reviews your application and appraisal. If approved you’ll move to the final steps.

Step 6: Close Your Reverse Mortgage: The Closing Process

Once approved you’ll sign the loan documents at closing. Closing costs can be financed into the loan.

Step 7: Get Your Money: Lump Sum or Monthly Payments

After closing you’ll get the funds as a lump sum, monthly payments or a line of credit – whichever is best for you.

Texas Reverse Mortgage Qualifications

To qualify for a reverse mortgage in Texas you must be 62 or older, live in the home as your primary residence and have significant equity. Applicants must also complete a counseling session with a HUD approved counselor.

Why Choose a Reverse Mortgage in Texas

Reverse mortgages offer many benefits – no monthly payments, flexible options to get the funds and you can stay in your home as long as you meet the loan requirements.

Get Tax-Free Income from Your Home’s Equity

With a reverse mortgage you can get tax-free cash from your home’s equity so you can have extra income in retirement without selling your home.

Flexible Payment and Withdrawal Options

Get the funds as a lump sum, fixed monthly payments or a line of credit – whichever is best for you.

No More Monthly Mortgage Payments

Reverse mortgages have no monthly payments so you can have more cash flow and stay in your home.

Keep Ownership and Stay in Your Home

You still own your home and can live there as long as you pay property taxes and insurance and keep the home in good condition.

Get a trusted loan officer. Contact one of our Texas reverse mortgage specialists today to review your options and get personalized guidance.

Texas Reverse Mortgage Options for Homeowners

Texas homeowners have several reverse mortgage options based on their home’s value and financial needs.

Home Equity Conversion Mortgage (HECM): The Most Popular for Texans

The HECM is the most popular reverse mortgage option, FHA insured and offers flexible fund disbursement and no monthly mortgage payments.

Jumbo Reverse Mortgages: For Higher Value Homes in Texas

For homes above FHA limits jumbo reverse mortgages offer larger loan amounts so are perfect for Texas homeowners with higher value homes.

HECM for Purchase (Reverse Mortgage for Purchase): Buy a Home with a Reverse Mortgage

This option allows seniors to buy a new home with a reverse mortgage and no monthly mortgage payments when moving into a new home.

Single Purpose Reverse Mortgages: For Specific Needs

Single purpose reverse mortgages are for specific expenses like home repairs or property taxes – a more affordable option with lower costs.

Texas Reverse Mortgage Borrower Rights

Texas law protects reverse mortgage borrowers. As long as you meet your loan requirements – pay property taxes and insurance – you won’t lose your home.

Get Your Reverse Mortgage: Texas Reverse Mortgage Calculator

Use our reverse mortgage calculator to see how much you can get based on your home’s value, current rates and your age.

Contact a Texas Reverse Mortgage Loan Officer Near You

Additional information about Reverse Mortgages:

• HUD’s Home Equity Conversion Mortgage (HECM) Program
  This page offers comprehensive details about the HECM program, including borrower requirements, counseling services, and how reverse mortgages work.
  • Link: HUD HECM Program

• FHA Reverse Mortgage Information
  The FHA website provides an overview of reverse mortgage options, including eligibility requirements, limits, and protections for borrowers.
  • Link: FHA Reverse Mortgages

• Consumer Financial Protection Bureau (CFPB) – Reverse Mortgages
  The CFPB offers a detailed guide on how reverse mortgages work, along with information on risks, borrower responsibilities, and alternatives.
  • Link: CFPB Reverse Mortgage Guide

• Federal Housing Administration (FHA) Mortgage Limits
  This page provides up-to-date information on the FHA mortgage limits, which are crucial for determining how much can be borrowed with a reverse mortgage.
  • Link: FHA Mortgage Limits

• HUD-Approved Counseling Agencies
  Reverse mortgage counseling is mandatory, and this HUD page allows readers to find a HUD-approved counseling agency near them.
  • Link: HUD Counseling Agency Locator

• AARP – Reverse Mortgage Information
  AARP offers a wealth of information about reverse mortgages, including considerations for seniors and links to government resources.
  • Link: AARP Reverse Mortgage Information