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Texas Reverse Mortgage Loan

Take the equity and enjoy retirement with the Texas Reverse Mortgage Loan
Find out how you can live your best life by qualifying for this type of loan in
Houston and across Texas.

Texas residents who are 62 or older may qualify for a Texas reverse mortgage loan.

If you have paid off most of your mortgage, a reverse mortgage allows you to use your home’s equity to receive payments each month.

This means you can enjoy your retirement with the help of a reverse mortgage loan.

Homeowners in Houston, Texas may want to apply for a Texas reverse mortgage. However, there are a few things you should know before you apply.

Your Guide to the Houston Reverse Mortgage

If you’ve almost paid off your Texas mortgage, a reverse mortgage may be right for you and your family.

In order to get a reverse mortgage loan, you’ll need to apply and provide details and documentation to your lender. The information you provide will help them determine how much you are qualified to borrow.

Reverse mortgages sound complicated, and the concept can be confusing.

If you need money to fund your golden years, a reverse mortgage may be able to help you. Here’s how it works.

Over the past few years, the payments you’ve made on your home have translated into equity.

When you get a reverse mortgage loan, the bank loans you back what you’ve already paid. They charge you interest on the money you borrow back.

You don’t have to make monthly payments, and you won’t owe any interest until the home is sold.

This can be a great way to secure a steady stream of cash, but it’s risky.

The Downside of the Texas Reverse Mortgage

While a reverse mortgage may sound like a good idea for everyone over 62, there are serious risks that must be considered before you take out a reverse mortgage loan.

If you pass away before you sell your house, your children or heirs could wind up with a financial mess on their hands.

They will have to pay off the full reverse mortgage loan amount or allow the bank to seize your home.

Reverse mortgages are financially risky, but they do offer a few benefits for some homeowners.

Houston Reverse Mortgage Types

There are three main types of reverse mortgages you can apply for.

1. Single-Purpose Reverse Mortgage
State and local government agencies may offer reverse mortgages, but there are restrictions on how you can spend your loan money when you take out a single-purpose reverse mortgage.

You may need to make home repairs or pay property taxes. These essential expenditures can be paid for with the help of a single-purpose reverse mortgage loan.

Travel, entertainment, and personal expenses are out of the question. This type of loan can be a life-saver for seniors who are short on cash.

2. HECM Reverse Mortgage
Home Equity Conversion Mortgages are the most common reverse mortgages. These mortgages are offered by the Federal Housing Administration.

HECM reverse mortgages were first offered in 1988 to help seniors pay their bills.

HECM loans can be used for anything. Vacations, expensive dinners, and extravagant purchases are fair game if you take out this type of loan


This type of mortgage can have serious consequences if you default, and you’re certain to pay a high insurance premium.

3. Proprietary Reverse Mortgage
Privately-owned companies in Houston may offer reverse mortgages. You can typically qualify for a higher loan amount when you choose a proprietary reverse mortgage, but the interest rates can be outrageous.

Some companies may allow you to borrow more than the equity in your home or the federal amount. This puts you at a greater risk of falling into a debt trap you’ll never escape.

Texas Reverse Mortgage Loan Requirements

Reverse mortgage applicants must meet the following requirements.

  • You are at least 62 years old.
  • Your home is paid-off or almost paid-off.
  • You don’t owe any debt to the federal government.
  • The home is your primary residence.
  • You are able to pay insurance, property taxes, and other home-related expenses

Final Word on Reverse Mortgages

Although reverse mortgages can be helpful in some scenarios, many experts advise against them because they come with so much risk.

From expensive fees to equity reduction, a reverse mortgage can end up costing you more than your home is worth.

Reverse mortgages should only be used as a last resort and never for extravagant purposes.