Texas Reverse Mortgage

A reverse mortgage loan gives you access to the equity in your home without making monthly mortgage payments, making it a great financial tool for those on a fixed income who need more money for ongoing costs.

Get an instant quote

Table of content

Our Texas Reverse Mortgage Options

Our team can assist you in finding reverse mortgage loans that meet your needs, whether you need them to pay for medical expenses or make critical home repairs. 

Texas Reverse Mortgage Loan Process

We guide reverse mortgage borrowers each step of the way through a simple and streamlined process. 

See today’s mortgage rates in less than 60 seconds
Get a quote

Understanding Texas Reverse Mortgages and Their Benefits

Also known as a Home Equity Conversion Mortgage (HECM), reverse mortgage loans are a way to borrow against your home equity. They are available for Texas homeowners older than 62, and generally, you must have a low mortgage balance or own the home outright in order to qualify. 

Benefits of a Texas Reverse Mortgage

A senior Texas homeowner might find that their fixed income doesn’t cover all their needs, especially with the rising cost of living. 

A reverse mortgage is unlike traditional mortgages, where you pay the lender. Instead, with a reverse mortgage, the lender pays you. A reverse mortgage borrower can borrow against their home’s equity, and use the loan proceeds to cover their urgent financial needs or future expenses. Your lending limit is determined by the current market value of the home and age of the youngest borrower, meaning you may have significant home equity to use.  

You have flexibility in how you receive your reverse mortgage loan: you may choose a lump sum payment, a monthly payment, or a line of credit to use as necessary. Whether you need help managing daily needs or want to undertake a large renovation project, such as making your home more accessible, you can select the reverse mortgage type that best suits your needs. 

How Does a Texas Reverse Mortgage Work?

With reverse mortgage loans, the borrower receives payments from the lender, either in a lump sum payment or as monthly payments. You may also choose to accept your reverse mortgage funds as a line of credit, meaning that you draw down funds as needed rather than getting regular payments.

It’s important to note that you will still need to pay property taxes, homeowners insurance, and other expenses associated with the home. As you are not making monthly payments, you’re not paying off the existing mortgage balance, which may mean that you have a significant loan balance to cover if you choose to sell the home.

Additionally, reverse mortgage applicants who intend to use the Home Equity Conversion Mortgage (HECM) provided by the Federal Housing Administration (FHA) must receive loan counseling and a financial assessment from a HUD-approved counselor. 

The Department of Housing and Urban Development (HUD) is a branch of the federal government that seeks to protect senior citizens from predatory Home Equity Conversion mortgages. In this program, you’ll learn how to recognize a reverse mortgage scam and ensure that you understand all the stipulations involved with a reverse mortgage. 

These counseling programs are offered by local government agencies and non-profit organizations in partnership with HUD. 

Why Choose Arnaiz Mortgage for Your Texas Reverse Mortgage?

Arnaiz Mortgage is committed to helping our customers find a loan servicer that suits their financial needs. We’ll guide you through all your options to ensure you’re confident in your decision to get a reverse mortgage, explaining the benefits and drawbacks of this unique mortgage product. Additionally, we’ll review the available lenders and work with you to find a rate that works for you.

We strive for great communication and trust with all our customers. We believe that feeling comfortable with your mortgage broker is key to having a great loan experience. You can contact us with any questions you may have throughout the process, and we’ll offer helpful advice to demystify the process for you. 

Discover mortgage insights and best practices

Building Your Real Estate Portfolio with Investment Property Loans

Investment real estate property loans are often overshadowed by the more conventional financing topics, such…

Mortgage Interest Rates: How They Work and What Affects Them

Mortgage interest rates are pivotal in shaping a mortgage's affordability and overall cost. These rates…

VA Loan Eligibility Criteria: A Comprehensive Overview

VA home loans, which are often overshadowed by conventional and FHA loans, are often the…

Frequently asked questions about Texas Reverse Mortgage

  • Are reverse mortgages allowed in Texas?

    Yes, you can access these products in Texas if you meet the reverse mortgage qualifications, such as being over 62 and using the property as your primary residence.

  • Do both spouses have to be 62 for a reverse mortgage in Texas?

    All Texas homeowners who want to access a reverse mortgage need to be 62 or older. If both you and your spouse are on the title of the home, then you both must meet this age requirement. However, if only one of you owns the home, then the other spouse can be younger.

  • What are the eligibility requirements for a reverse mortgage in Texas?

    Texas homeowners must meet certain requirements for all types of reverse mortgages. These include being above the age of 62, using the property as their primary residence, and having a low balance or owning the home outright. 

     

    Additionally, you must prove that you have cash reserves to pay for the home’s ongoing costs, such as property taxes and homeowner’s insurance. The property needs to be in good shape with no major structural issues.

    If you’re seeking a HECM loan, you cannot have any federal debt like student loans or back taxes. You’ll also have to undergo an education course to ensure you understand the stipulations of a reverse mortgage loan.

  • Who offers reverse mortgages in Texas?

    As with the plethora of traditional mortgage options, many lenders offer a reverse mortgage in Texas. 

     

    Most people choose Home Equity Conversion Mortgages, which are insured by the federal government and are offered by a variety of private lenders who work with the FHA program. However, you can also access proprietary reverse mortgages, which are privately administered by mortgage companies and are not associated with the FHA. 

    When you contact us to review your reverse mortgage options, we’ll guide you through the many lenders who provide this product and identify the right program for your needs.

  • What types of reverse mortgages are available in Texas?

    There’s more than one type of reverse mortgage, and the one you choose depends on your specific needs.

     

    Home Equity Conversion Mortgage (HECM) loans are provided by the Federal Housing Administration (FHA), a division of HUD. This option comes with stricter requirements and is only provided through lenders that work with the Federal Housing Administration. You’ll need to undergo counseling to ensure you understand the loan documents.

     

    Single-purpose reverse mortgages are reserved for specific needs, such as paying off other debts or affording medical expenses. You need to prove that you will use the loan proceeds for the stated need rather than for anything else.

     

    Proprietary reverse mortgages are offered by private lenders, unlike HECM loans. In general, you may need to get a proprietary reverse mortgage if you own a home above the  $1,149,825 limit for HECM loans set by the FHA. As these are not federally insured like Home Equity Conversion Mortgages, there may be different requirements, and the interest rates may be higher due to the greater risk.

  • Are there any specific costs or fees associated with reverse mortgages in Texas?

    Just like a traditional mortgage, a reverse mortgage loan requires you to pay closing costs, which are fees charged by the lender to cover the cost of originating the loan. This can include a title search, appraisal, inspection, origination fee, credit check, and survey. 

     

    In Texas, lenders cannot charge you more than 3% of the loan amount in fees.

  • How can I choose the best reverse mortgage lender in Texas?

    When seeking a reverse mortgage loan, it’s crucial that you do your homework – and Arnaiz Mortgage will assist. We partner with reputable and responsible reverse mortgage lenders with a strong service track record.

    The Consumer Financial Protection Bureau has a list of warning signs to look for in a reverse mortgage lender, such as encouraging you to invest the proceeds from your reverse mortgage loan in their products or being unable to explain the product’s particulars.

    In general, HECM products are safer, as they are insured by the federal government; you can find a list of approved lenders by checking with the Department of Housing and Urban Development.