Qualifying For A Reverse Mortgage

When homeowners turn 62, they pass the age requirement to receive a reverse mortgage. Does this mean that anyone whose name is attached to a property automatically qualifies for this kind of loan? There are additional requirements that you should know. Aside from the need for everyone whose name is on your property title to reach the minimum age, there are rules concerning your current equity in your property, whether you live in or just own it, and even the designated type of residence. Additional expectations can make it harder to see clearly whether or not this is something you can apply for; it can also be hard for some homeowners to understand just what their reverse mortgage can offer them.

The guidance you receive from FHL Texas can help you understand the different rules and expectations for homeowners interested in reverse mortgages. We provide personalized support from the start of your inquiry to make sure this is something that is truly right for you. Beyond this help, we offer expert details on the different types of loans available and how they can be awarded. Applying for this kind of loan can offer significant help with retirement and other matters. When you speak with us about your interested, we can make sure applying is successful and in your long-term interest.

Qualifying Homeowners Can See Exciting Benefits From A Reverse Mortgage

A reverse mortgage can differ from other forms of borrowing related to home ownership. One reason for this is that you are not paying the loan back with scheduled payments; instead, you receive money over time as your loan is paid to you. Another is that it comes with certain standards for homeowners, such as minimum age requirements, that are different from other financial offerings. Should you choose to receive one, it will arrive at a time when many think about leaving the workforce and enjoying retirement. Yours can support you whether you want to go out and see more of the world, take on new investments, repair your home, or simply feel confident that you have support in the event unexpected costs arise.

Confirming That You Fit The Requirements For Taking A Loan

What do you need to do beyond reach the age of 62 and own a home if you want a reverse mortgage? There are certain requirements regarding the value of your property and your ability to continue paying necessary bills and taxes on it. It is also only an option if the reverse mortgage is for your primary residence. Single-unit homes are eligible, and so are two-to-four person properties when you reside in one of the units and have the property title. Townhomes and some condominiums can also be used to pursue reverse mortgages. While the traditional HECM loan type can only be received for FHA-approved condominiums, new loan types have opened more condominiums up for eligibility.

A House That Is Not Fully Paid Off Can Be Eligible For A Loan

When your property is fully paid off, you have more equity to borrow against for your reverse mortgage. While this is advantageous, this does not mean only people whose mortgages have been paid in full can qualify. In fact, you can find that you are eligible when you have more than 50% equity. As part of the requirements for the loan, it will be necessary for your reverse mortgage to pay off what remains of your current mortgage.

Reviewing The Different Terms Of A Reverse Mortgage That You Can Receive

Consistent monthly payouts from your loan will help you keep up with bills, groceries, and other expenses. While this can be the ideal way to receive what you are offered, there are other options. They include the ability to take more at the start of the loan and even the option to establish yours as a line of credit with your lending institution. A credit line keeps growing at a predetermined fixed rate. For borrowers who want more assistance with their monthly obligations, a Property Charge Set Aside (PCSA) can be set up to make all scheduled payments with a portion of the money you receive.

Equity Elite And Equity Elite Zero Loans Can Make Loans Accessible To Homeowners Who Did Not Qualify In The Past

Texas has updated its rules for reverse mortgages and allowed for borrowers to pursue Equity Elite and Equity Elite Zero loans. These offer benefits by making more property owners eligible to take out loans. They also provide lower closing costs, which can make the pursuit of a reverse mortgage more appealing. We can help you understand how HECM and the Equity Elite loans differ, and we can give you insights to determine which might be right for you.

Talk To FHL Texas About Qualifying For And Receiving Your Reverse Mortgage!

For many who are qualified to receive them, reverse mortgages can be valuable to retirement plans. Our support can help you make sure that you are both in the right place to receive one and someone who could benefit from the support they offer. For more information and a chance to discuss your eligibility and options, please call FHL Texas today at 1-800-990-LEND (5363).