The current economy has made many Texas seniors uneasy about their financial security during retirement. One way many seniors are finding more financial security is with a reverse mortgage. A FHA reverse mortgage is a government-insured loan that allows seniors ages 62 or older to access the equity they have built in their homes, while retaining the title and making no monthly payments.
The loan first pays off any existing mortgage and the remaining funds and extra cash flow are available for use by the borrower for any reason - remodeling projects, health care expenses, bills or even travel. Michael Winterrowd of Odessa, TX, began investigating this option with his wife several years ago. When she passed away in April, he realized he needed to move forward. "I really needed to make some repairs to the house and at the same time needed the extra income," he said. "This was the best way to allow me to do both without adding any more payments."
Unlike a traditional loan, where an income verification is required, this loan requires no income qualifying and minimal credit qualifying.
The amount of money a borrower can receive is based on the value of the home, the borrower's age and the current interest rate for the selected product. Potential borrowers should contact a lender that specializes in FHA reverse mortgages and request an analysis of their situation to determine their loan options and how much would be available. Funds can be dispersed in one or a combination of three ways: a lump sum payment, a line of credit and/or monthly payments. With a reverse mortgage, you remain the owner of the home and are still responsible for paying the property taxes and homeowner's insurance and making property repairs.
The loan is not due until the last borrower permanently leaves the home and the borrower or their heirs will never owe more than the value of the home.
The most common reverse mortgage product is the Home Equity Conversion Mortgage (HECM). The HECM is the only reverse mortgage insured by the federal government - these loans are insured by the Federal Housing Authority (FHA) which is part of the United States Department of Housing and Urban Development (HUD).
While a reverse mortgage isn't for everyone, if you are 62 or older and own your home, you need to know about this powerful product and how it could possibly help you achieve your financial goals. If you are a senior residing in Texas and want to learn how a reverse mortgage could benefit you, please visit legacyreverse.com to learn more.
The loan first pays off any existing mortgage and the remaining funds and extra cash flow are available for use by the borrower for any reason - remodeling projects, health care expenses, bills or even travel. Michael Winterrowd of Odessa, TX, began investigating this option with his wife several years ago. When she passed away in April, he realized he needed to move forward. "I really needed to make some repairs to the house and at the same time needed the extra income," he said. "This was the best way to allow me to do both without adding any more payments."
Unlike a traditional loan, where an income verification is required, this loan requires no income qualifying and minimal credit qualifying.
The amount of money a borrower can receive is based on the value of the home, the borrower's age and the current interest rate for the selected product. Potential borrowers should contact a lender that specializes in FHA reverse mortgages and request an analysis of their situation to determine their loan options and how much would be available. Funds can be dispersed in one or a combination of three ways: a lump sum payment, a line of credit and/or monthly payments. With a reverse mortgage, you remain the owner of the home and are still responsible for paying the property taxes and homeowner's insurance and making property repairs.
The loan is not due until the last borrower permanently leaves the home and the borrower or their heirs will never owe more than the value of the home.
The most common reverse mortgage product is the Home Equity Conversion Mortgage (HECM). The HECM is the only reverse mortgage insured by the federal government - these loans are insured by the Federal Housing Authority (FHA) which is part of the United States Department of Housing and Urban Development (HUD).
While a reverse mortgage isn't for everyone, if you are 62 or older and own your home, you need to know about this powerful product and how it could possibly help you achieve your financial goals. If you are a senior residing in Texas and want to learn how a reverse mortgage could benefit you, please visit legacyreverse.com to learn more.
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