Houston Reverse Mortgage

Senior homeowners looking to enhance their retirement income can utilize a Houston reverse mortgage, a flexible loan option that provides various benefits. While many enjoy receiving steady payments from their home equity, others take advantage of features like cashing out without the need for monthly payments. Unlike a traditional mortgage, you aren’t required to make monthly payments—the lender pays you.

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Our Houston Reverse Mortgage Options

Our team of mortgage professionals can assist Houston, Texas, residents find the perfect reverse mortgage option for their specific circumstances.

Houston Reverse Mortgage Loan Process

We aim to make the reverse mortgage process as easy as possible through our streamlined service.

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Learn how much you can receive through HECM reverse mortgages with a fast and free quote.

Houston Reverse Mortgages: Build a Secure Financial Future

Many seniors worry about maintaining their quality of life in their retirement years, especially as the cost of living continues to rise. Thankfully, a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), can eliminate your existing mortgage while providing the funds you need to enjoy your golden years.

Benefits of a Houston Reverse Mortgage

The Houston, Texas, housing market has been booming in the past few years; the average home value has risen by 86% since 2014. This means that Texas seniors have ample home equity they can leverage to cover unexpected expenses, medical bills, or home repairs by applying for a reverse mortgage.

With a reverse mortgage loan, you eliminate the need for monthly mortgage payments. Many homeowners use it to remove existing mortgage liabilities or access their home equity without increasing their debt. While some choose to receive tax-free cash payments based on their home’s equity, others appreciate the flexibility of staying in their home without monthly repayment obligations. You won’t need to repay the loan until the house transfers ownership, either through a sale or passing away.

How Does a Houston Reverse Mortgage Work?

The most common type of reverse mortgage loan is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). HECMs have a loan limit of $1,149,825. If you would like a higher loan amount, you can explore jumbo reverse mortgages, also known as a proprietary reverse mortgage. These are provided by private lenders and carry greater risk, as they are not government insured.

With any reverse mortgage, you will take out a larger loan amount than your original loan that covers the home’s current value and anything you still owe. The loan provider will provide this balance as a lump sum payment, monthly payments, or a line of credit.

To qualify for HECM loans, borrowers must be 62 or older and have paid off at least 50% of the home’s value. You can only take out a HECM loan on a primary residence, meaning that vacation and investment homes do not typically qualify. Generally, you cannot owe any federal debt, like unpaid taxes. You may still be able to access funding if you pay off these debts with the proceeds from your loan.

Those who want HECM loans will need to undergo counseling with a qualified financial advisor. In Texas specifically, they must also wait 12 days between their counseling session and having the loan funded, a mandatory cool-down period meant to ensure they are making an informed decision.

Reverse mortgages do not need to be paid until the home transfers ownership, such as if the homeowner sells the property or passes away. In the case of inheritance, the surviving family member must either pay off the loan or sell the home for at least 95% of its appraised value.

Why Choose Arnaiz Mortgage for Your Houston Reverse Mortgage?

Arnaiz Mortgage is a trusted provider of reverse mortgages, helping you find the perfect option for your specific needs. We believe that trust is the foundation of any good mortgage deal. We take the time to get to know our clients and ensure they find loan terms they love.

Customer satisfaction is our primary goal, so we pride ourselves on our transparent, trustworthy, and streamlined process. We’ll answer all your questions and ensure you know exactly what to expect, including estimated closing costs and potential interest rates.

If you’re ready to get started on a reverse mortgage application, give us a call at (623) 806-4645. You can also apply online or get a free, no-obligation quote to see how much you can receive. 

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Frequently asked questions about Houston Reverse Mortgage

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

    To qualify for a reverse mortgage loan, Texas borrowers must be at least 62 years old, have at least 50% equity, and not owe any federal debt. Only primary residences qualify for reverse mortgages. For a HECM mortgage, homeowners must undergo a financial counseling session by a HUD-approved counselor, typically available through local government agencies.

  • How much home equity do I need for a Houston, TX, reverse mortgage?

    The typical bank or credit union requires at least 50% equity, but some private lenders may be more flexible.

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

    To obtain a reverse mortgage, you must pay origination fees, which are usually about 2% of the total home value. There will also be closing costs like a title search, appraisal, and inspection. Lastly, an FHA-backed loan will require an initial insurance premium of between 0.5% and 2.5% and ongoing insurance.

    You must show you have enough money to cover homeowners insurance and property taxes. Some lenders will allow you to prove you can cover these expenses with your loan proceeds.

  • How will a reverse mortgage impact my heirs or estate?

    A Texas reverse mortgage comes due when the property transfers ownership, either by sale or upon the homeowner’s death. If the home is worth less than the loan amount, your heirs have the option to pay 95% of the home’s appraised value to settle the loan. However, if the home has equity, your heirs can sell the property for its market value and retain any remaining proceeds after paying off the loan. As a last resort, they can allow the mortgage company to take possession of the property.

  • What are my payout options with reverse mortgages?

    You can receive your money as a lump sum payment, monthly payments, or a line of credit. It’s also possible to combine these payment options, such as receiving an upfront payment and drawing down the rest as necessary from a credit line.

  • How does a reverse mortgage affect property taxes and insurance in Houston?

    A Texas reverse mortgage will generally not impact your property taxes or homeowners insurance, which are still your responsibility. While these are still part of your expenses, you will no longer be making monthly mortgage payments. Additionally, the proceeds from an HECM are tax-free and do not count as income. This means that they will not impact your Social Security or Medicare benefits.

  • What happens to my reverse mortgage if I decide to sell my home in Texas?

    If you sell your primary residence, the reverse mortgage becomes due, and you must repay what you borrowed with the sale proceeds.

  • Can I use a reverse mortgage to refinance an existing loan?

    Yes, you can use a reverse mortgage to refinance an existing loan. You may refinance your reverse mortgage loan to add a new cosigner or take advantage of better interest rates. If your home has appreciated significantly, you can also take out a larger loan balance, though this does come with risks.

    Finally, it’s also possible to revert the loan back into a traditional mortgage, such as if you’d like to ensure your heirs can keep the property in the family without selling the home.

  • How does Houston’s real estate market affect reverse mortgage terms?

    The amount you can borrow with reverse mortgages is based on your home’s property value. This means that if the Texas real estate market is appreciating rapidly, you’ll be able to borrow more, as you will have more equity in your property. A downside is that if the market falters, you will be able to borrow less. With an HECM loan, lenders will generally only lend up to 60% of the home’s value, but with interest, you may owe more than the home’s value if the property depreciates.

  • Are there any restrictions on how I can use the funds from a reverse mortgage?

    HECM products do not have restrictions, though a single-purpose reverse mortgage from a private lender can only be used for one purpose.