Faq’s

A reverse mortgage allows homeowners aged 62 and older to convert a portion of their home equity into cash. Unlike traditional loans, you don’t make monthly mortgage payments. The loan is repaid when you move, sell, or pass away, providing flexibility and financial support during retirement.

To qualify for a reverse mortgage in Texas, you must:

• Be at least 62 years old.
• Own the home as your primary residence.
• Have sufficient equity in your home.
• Stay current on property taxes, homeowners insurance, and home maintenance.

Reverse mortgages offer various benefits, including:

• Supplementing retirement income: Access cash without selling your home.
• Staying in your home: Utilize home equity while continuing to live in your property.
• Flexible loan options: Choose between a lump sum, monthly payments, or a line of credit.

You can use reverse mortgage funds for a variety of purposes, such as:

• Covering living expenses
• Paying for healthcare costs
• Funding home improvements
• Establishing a financial safety net for emergencies

The HECM is a government-insured reverse mortgage program backed by the FHA. It provides significant benefits, including access to lower interest rates, flexible payment options, and enhanced consumer protections. It’s specifically designed to help seniors maximize their home equity.

A reverse mortgage typically becomes due when the homeowner moves out, sells the home, or passes away. Your heirs will have the option to repay the loan and keep the home or sell the property to settle the debt. Importantly, they will not be responsible for any deficiency if the home’s sale proceeds do not cover the loan amount.

Yes, obtaining a reverse mortgage can involve various fees, including:

• Origination fees
• Mortgage insurance premiums
• Closing costs
• Servicing fees These costs can often be rolled into the loan amount, minimizing upfront expenses.

When choosing a reverse mortgage lender, consider the following factors:

• Experience and expertise in reverse mortgages
• Transparency in terms and fees
• Customer service and support
• Online reviews and testimonials from previous clients

The application process typically involves:

1. Initial consultation to discuss your needs and options.
2. Application submission, including necessary documentation.
3. Home appraisal to determine value and eligibility.
4. Underwriting and loan approval.
5. Closing, where you receive the funds and finalize the loan.

Before securing a reverse mortgage, federal law requires borrowers to undergo counseling from a HUD-approved counselor. This counseling session covers the implications, benefits, and alternatives to a reverse mortgage, ensuring you make an informed decision.

Once your application is approved and the loan is closed, you can access your funds quickly. The timeline varies based on the specific lender and the complexity of your application, but many homeowners report receiving funds within a few weeks of closing.

Yes, refinancing your existing mortgage into a reverse mortgage can eliminate monthly payments and convert your home equity into cash. Our experts will guide you through the process to ensure it aligns with your financial goals.

If you move out of your home, the reverse mortgage becomes due. You or your heirs will need to pay off the loan either by selling the property or refinancing it into a traditional mortgage.

Yes, reverse mortgage loan limits are determined based on the appraised value of your home and current FHA limits. Our loan officers can provide detailed information on the specific limits applicable to your situation.

A reverse mortgage does not directly affect your Social Security or Medicare benefits. However, it’s essential to consider how withdrawing cash might influence your overall income, so consult with a financial advisor to fully understand the implications.