Reverse Mortgage Loan Specifics
 

Eligibility Requirements

The eligibility requirements for a Texas Reverse Mortgage are quite simple.  There are no income, employment or credit qualifying restrictions.

•  All homeowners listed on Deed must be age 62, or older, and occupy the property as their principal residence

•  The home may be owned free and clear, or, have a remaining mortgage balance which can be paid-off by a Texas Reverse Mortgage

•  The property must be a single‑family, or a two‑to‑four unit dwelling

•  Townhomes, detached homes, condominium units, Planned Unit Developments (PUDS) and some manufactured homes are eligible for a Texas Reverse Mortgage.

•  The home must meet HUD minimum property standards.  In some cases, home repairs can be made after the closing of a Texas Reverse Mortgage

How much can be borrowed?

The maximum amount that can be borrowed using a Texas Reverse Mortgage is based on the following factors:

•  The age of the youngest homeowner

•  The appraised value of the home

•  The current interest rate

•  The county in which the property is located

In general, the more your home is worth, the older you are, and the lower the interest rate, the more you'll be able to borrow from a Texas Reverse Mortgage.

Click here to estimate how much is available to you.

Payment Options

People have unique needs.  Some prefer to take their entire amount up front, while others prefer to receive steady monthly payments to supplement their other income.  Regardless of which distribution plan you pick, you are able to adjust your plan as often as you wish to accommodate changing needs.  There are five different kinds of Texas Reverse Mortgage distribution plans to fit your needs and desires. 

Five Payment Options to choose from . . .

1.  Lump Sum Cash Advances:  Cash is immediately available – often used to payoff an existing mortgage

2.  Term:  Equal monthly payments for a fixed period of months selected

3.  Tenure:  Equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence

4.  Line of Credit:  A credit line which the homeowner can draw upon as he or she wishes

5.  Combination:  Any combination of the options listed above

Interest Rate

You can choose a fixed rate or an adjustable rate loan for your Texas Reverse Mortgage.  You have the option of choosing either a monthly or annually adjusting rate.  Rates are linked to the one‑year U.S. Treasury Security Rate or the Londen Interbank Offerer Rate (LIBOR). Contact a Texas Reverse Mortgage Specialist to determine which option is best for you.

A change in the interest rate has no effect on the amount of, or number of loan advances you can receive – rather, it simply results in the reverse mortgage loan balance growing at a faster or slower rate.

Loan Repayment

The reverse mortgage loan is due and payable when you no longer occupy the property as your principal residence or fail to comply with the loan agreement.

The only requirement is that the Texas Reverse Mortgage loan be repaid in one payment.  There is no requirement that the property be sold – only that the loan is repaid.  This may occur either through the sale of the home or other resources (such as savings, or possibly applying for a new mortgage).

Effect on Public Benefits

Reverse mortgage loan proceeds are not considered income and will not affect Social Security or Medicare benefits, because these programs are not based on need.

However, your monthly Texas Reverse Mortgage advances may affect your eligibility for some other programs. 

Consult your local program offices to determine how, or if, monthly Reverse Mortgage payments might affect your specific situation.





Texas reverse mortgage loans and rates