Dallas Reverse Mortgage

Reverse mortgage loans enable Dallas, Texas, homeowners above the age of 62 to turn their home equity into cash for greater financial security in their golden years. Unlike a typical home loan, where you pay the lender, the lender pays you, providing tax-free income.

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Our Dallas Reverse Mortgage Options

Arnaiz Mortgage assists senior citizens in finding the Home Equity Conversion Mortgage (HECM) for their specific circumstances. 

Dallas Reverse Mortgage Loan Process

We’ll answer all your questions about a Lone Star reverse mortgage and guide you through the entire process.

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Learn how much money you can receive through a HECM reverse mortgage loan through a free, no-obligation quote.

Dallas Reverse Mortgages: Unlock Your Financial Freedom

Texas senior homeowners can turn their primary residence into a source of income during retirement through a reverse mortgage loan. With this unique product, seniors can pay off their existing mortgage balance through a new loan and receive the remaining home equity as payments from their lender. 

Benefits of a Dallas Reverse Mortgage

The local real estate market has rapidly transformed in the last ten years; home values are up 142% from 2014, representing significant equity for seniors. Borrowers in the Lone Star State can tap into this windfall with reverse mortgages, eliminating monthly mortgage payments and providing tax-free income. 

Reverse mortgages allow eligible seniors to receive monthly payments from their lender, which can be used to supplement retirement pensions. Better yet, they can stay in their homes and only have to repay the money if they sell the property or move to a new principal residence. This can offer significant financial relief, especially as the cost of living has increased by 2.5% in the last year. 

How Does a Dallas Reverse Mortgage Work?

Reverse mortgages work by taking out a new mortgage for the home’s current appraised value, which is then used to pay off the remaining loan balance. The remainder is provided to the borrower as cash, either as a lump sum, monthly payments, or a line of credit. 

This financial flexibility and the ability to stay in the home make reverse mortgages a more attractive option than selling the house and obtaining a new traditional mortgage. 

Most reverse mortgage loans are Home Equity Conversion Mortgages (HECMs), insured by the Federal Housing Administration (FHA). To qualify, all cosigners must be over 62 and either own the home outright or owe less than 50% of its value. They also cannot owe any federal debt or be able to pay their debts off with the loan.

To apply, you will need your driver’s license, Social Security number, and information on the property, such as an updated appraisal. When choosing an HECM, borrowers must undergo financial counseling by a HUD-approved counselor, and they will need to pay the residential mortgage loan originator fees to cover the cost of originating a loan. They will also need to continue paying property taxes and homeowners’ insurance.

Reverse mortgages have either fixed-rate or adjustable interest rates. They are only repaid once the homeowners sell or transfer the home to a new owner, such as a family member after they pass away. 

Why Choose Arnaiz Mortgage for Your Dallas Reverse Mortgage?

Arnaiz Mortgage is a brokerage company whose passion is matching clients with the right mortgage products, ensuring they can stay in the homes they love. 

We strive to serve homeowners throughout Texas by offering the best reverse mortgages for their needs. We’re very familiar with the Texas housing market and will give you up-to-date advice on how much you can borrow and specific regulations surrounding reverse mortgages in the Loan Star State. 

Our goal is to build trust through transparency and a seamless, stress-free mortgage process. We take the time to understand our clients and answer all their questions, as we know your home is your most important investment. 

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Frequently asked questions about Dallas Reverse Mortgage

  • What are the eligibility criteria for a reverse mortgage in Dallas?

    To access reverse mortgages, all borrowers must be above the age of 62, not have any federal debt, or commit to paying the debt with their proceeds. The home needs to be the borrower’s principal residence, and they should have at least 50% equity. You must prove you have the funds necessary to continue paying the home’s expenses.

    Eligible borrowers must also undergo financial counseling to ensure they understand their responsibilities with a reverse loan.

  • How much equity do I need to qualify for a Dallas reverse mortgage?

    Typically, borrowers applying for a Home Equity Conversion Mortgage (HECM) must have at least 50% equity. Some proprietary reverse mortgage lenders may allow for a lower percentage.

  • What are the upfront costs associated with a reverse mortgage in Dallas?

    Like other mortgage options, a reverse mortgage lender will charge origination fees, but these can only be 2% of the total loan amount. There will also be an initial insurance premium for an FHA-insured loan, which ranges from 0.5% to 2.5% of the total loan amount.

    Closing costs will be similar to those for other mortgage products, such as a title search, appraisal fee, and inspection. However, these may be slightly less than when selling or buying a property because you do not have to pay realtors.

    If seeking a HECM, you must pay for HUD-approved counseling sessions, which are generally around $125.

  • How will a reverse mortgage affect my estate or inheritance?

    A Texas reverse mortgage becomes due when the property is transferred to a new owner, meaning the borrower’s heirs or estate must repay the money borrowed if they would like to keep the property in the family.

    Surviving family members can either repay the loan balance to keep the home or sell the property. If the home is worth less than the loan amount, they have the option to settle the loan for 95% of the home’s appraised value. If there is equity in the home, the heirs can sell it at market value, repay the loan, and keep any remaining proceeds.

    Before making a decision that may impact your estate, speak to an estate planner and your heirs about your options.

  • What are the payment options for a Dallas reverse mortgage?

    HECM products are flexible and can be dispersed in several ways: a lump sum, monthly payment, or line of credit. You can also mix and match these options, such as receiving a portion of the cash upfront and then dispersing the rest over time.

  • How does a reverse mortgage impact taxes or government benefits?

    The proceeds from this loan are tax-free and will not impact your gross income. They also should not affect your retirement benefits like Social Security or Medicare. However, they can impact needs-based programs like Supplemental Security Income (SSI) or Medicaid, which are determined by income. Your financial counselor will help you review the impact of a reverse mortgage when you undergo counseling.

  • What happens to my reverse mortgage if I move out of my home?

    If the home is no longer your primary residence, such as if the house is sold, the loan will come due, and you will need to make monthly mortgage payments.

  • How does the Dallas, Texas, housing market affect reverse mortgage terms?

    Your home’s current value determines the amount you can receive through reverse mortgages, as it must be appraised before the mortgage company will approve a loan.

    The Texas market has been hot for years, with homes appreciating by over 100% in the last ten years. This means your home’s value may be significantly more than when you first obtained your mortgage, and you can borrow more.

    If you seek an FHA-insured loan, the maximum available amount is $1,149,825. Generally, you can only receive 60% of the home’s appraised value, as the FHA wants to ensure you will not owe more than the house is worth.

  • Can I refinance an existing reverse mortgage in Dallas, Texas?

    Yes, you can refinance reverse mortgages. This is common if one of the homeowners is under the age of eligibility or interest rates have dropped since you first borrowed money.

    Should your home significantly appreciate in value, it may also be possible to take out a larger loan. Another option is to revert the loan to a traditional mortgage, repaying the sum you borrowed.

    The same eligibility requirements, including age restrictions and ownership of at least 50% of the home, still apply when refinancing reverse mortgages.

  • Are there any restrictions on using the funds from my Dallas reverse mortgage?

    When choosing an FHA-insured HECM loan, there are no restrictions on how you can use the funds. You may use the money to cover your living expenses, pay medical bills, or make necessary home repairs.

    If you only need the cash for one purpose, you may apply for a single-purpose reverse mortgage provided by a private mortgage company. In this instance, you and your loan provider will agree on how the money will be used, and you must demonstrate that you have applied the balance toward this specific purpose.