Our Fresno Reverse Mortgage Options in Texas
We’ll help match you to the right HECM loan or proprietary loan that meets your specific needs.
Fresno Reverse Mortgage Loan Process
Arnaiz Mortgage simplifies the reverse mortgage process with a streamlined application process and quick turnaround.
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Learn how much you can supplement your retirement income with reverse mortgages.
Fresno, TX Reverse Mortgages: Secure Your Financial Future
Home Equity Conversion Mortgage (HECM) loans eliminate monthly mortgage payments while providing cash flow, helping eligible Fresno seniors reach their financial goals and remain in their homes.
With reverse mortgages, you can leverage your home’s equity without selling the house, and you’ll also receive flexible financing to afford major purchases or simply improve your quality of life.
Benefits of a Fresno, TX Reverse Mortgage
Fresno’s senior population has grown significantly in recent years, as have average home values. Right now, a home in Fresno, TX, is worth 76% more than ten years ago, meaning homeowners may have significant home equity they can convert to cash.
With a reverse mortgage, homeowners replace their existing mortgage with a new, larger loan based on their property’s current appraised value. The lender then pays the homeowner the difference in whatever form they choose, either as a lump sum or monthly installments.
However, unlike a home equity loan or line of credit, this loan must only be paid back once the house transfers ownership. This reduces the risk of foreclosure and offers financial security. Plus, as the funds are considered loan proceeds, borrowers don’t need to worry about reporting the amount on their yearly income taxes.
Seniors can enjoy tax-free money and remain in their principal residence for as long as they like, making it a great deal for retirees.
How Does a Fresno Reverse Mortgage Work in Texas?
A reverse mortgage replaces your current mortgage with a larger one based on the home’s current value. You will then receive a portion of the home equity back as cash, and you can decide how these funds are distributed.
Your options include a lump sum paid upfront, monthly payments, or a line of credit you can draw down as needed. It’s also possible to mix these, such as receiving a lump sum upfront and smaller monthly installments.
The most common reverse mortgage loan program is the Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration (FHA). To qualify, all loan cosigners must be at least 62.
Typically, you should not owe any federal debt, or you must pay this off with your loan proceeds. You should have at least 50% equity in the property, though some proprietary loan programs will allow for a lower percentage.
The property must also be your primary residence, and you must complete financial counseling with a HUD-approved financial counselor to ensure you’re making the right decision for your needs.
In Fresno, TX, you must wait 12 days between your financial counseling session and the reverse mortgage being approved, called a cooling-off period. Texas also caps the origination fee for reverse mortgages at 3% of the total loan amount, while the FHA only allows fees up to $6,000. You will still be responsible for paying homeowners insurance and real estate taxes.
A reverse mortgage does not need to be repaid until the property changes ownership, such as if you sell the home, move into a new primary residence, or pass away. In the case of inheritance, your surviving family members have a few options. Heirs can sell the house for its current value if it has equity.
However, a 95% rule applies to homes that are underwater. Heirs that want to keep the property can purchase it for 95% of its current value.
For example, if the market takes a downturn and the home is only worth $200,000, they can purchase it for 95% of $200,000, even if it was originally purchased for $300,000. Professionals at Arnaiz Mortgage can help you learn more about the 95% rule to determine if you can buy the house cheaper than other people would be able to.
Why Choose Arnaiz Mortgage for Your Fresno, TX Reverse Mortgage?
We strive to provide our clients with the best possible experience in shopping for reverse mortgages, helping them find suitable loans for their unique circumstances. We’re familiar with the Fresno, TX, housing market, including its recent fluctuations. We can advise you on the best time to cash in your home equity for reliable retirement income.
Most importantly, we understand the unique laws surrounding reverse mortgage products in Texas and will ensure your loan complies with these standards.
Our team will help you compare different lenders and loan options, including fixed and adjustable rates, and guide you through the reverse mortgage process. Our efficient process enables you to get your reverse mortgage proceeds quickly and with as little hassle as possible.
Trust, transparency, and customer satisfaction are paramount to us. We know your home is one of your greatest assets and a place of special memories you hold close to your heart. As such, we’ll ensure you get a fair deal and can stay in your beloved home while receiving money to fund your needs.
To learn more about our reverse mortgage options, call us today at (623) 806-4645 or apply online.