Michael Inkman and the Inkman team are your licensed reverse mortgage specialists in Anna, Texas.
Reverse mortgage loans are increasingly popular among senior homeowners in Anna, Texas, providing them a way to tap into their home’s equity while still owning and living in the property.
The most common type is the Federal Housing Authority (FHA)-insured Home Equity Conversion Mortgage (HECM) loan. Unless stated otherwise, we’re referring to HECMs when discussing reverse mortgages.
How A Reverse Mortgage Loan Works
Reverse mortgage loans allow homeowners aged 62 and above to access a portion of their home equity without monthly mortgage payments. Instead of monthly mortgage payments, the borrower has to take care of property-related expenses like insurance, taxes and upkeep.
These loans are advantageous for Anna, Texas, seniors aiming to stay in their homes while gaining extra cash flow. The borrower has virtually no restrictions on how they use the funds, and many apply them to home improvements and enriching retirement life.
Our Reverse Mortgage Loans in Anna, Texas
Home Equity Conversion Mortgages (HECMs)
HECMs are the only reverse mortgage loans insured by the Federal Housing Administration (FHA) and are the most common. It allows homeowners who are 62 years of age or older to convert a portion of their home equity into cash. Because the cash is considered loan proceeds and not income, it is tax-free.*
Borrowers can elect to receive their proceeds in several ways, including lump sum, line of credit and monthly payments. As the FHA insures them, HECMs are non-recourse loans, meaning the homeowners or their heirs will never owe more than the home’s market value at the time of sale.**
HECM for Purchase (H4P)
The H4P reverse mortgage loan allows seniors to purchase a new home using the equity from the sale of their previous home, which can greatly increase their buying power (sometimes up to 200%)!
The increased purchasing power enables many seniors to move to more expensive homes and areas than they could otherwise afford. The homeowner doesn’t need to make monthly mortgage payments on their new home. Instead, they just have to take care of property charges like taxes, insurance and upkeep. As a bonus, if the home’s value appreciates over time and exceeds the amount borrowed at the time of sale, the homeowners or their heirs may receive the remaining equity.
Jumbo Reverse Mortgage Loan
Jumbo reverse mortgage loans are designed for high-value homes. With a HECM, the FHA limits the amount that you can borrow against the home to $1,089,300. So for homes worth more than the FHA limit, a traditional HECM could leave a lot of money on the table.
With a jumbo reverse mortgage, the homeowner can borrow against the home’s total value, potentially significantly increasing their proceeds from a reverse mortgage loan.
Advantages of Reverse Mortgage Loans
No Obligatory Monthly Mortgage Payments
Unlike traditional mortgages, reverse mortgage loans don’t require mandatory monthly payments. Instead, homeowners must pay property-related expenses like insurance, taxes and home upkeep. The loan is paid back when the homeowner sells the property, moves out or passes away.*
Potential for Home Value Appreciation
Given Anna’s real estate appreciation over the past few years, homeowners with reverse mortgage loans may be able to benefit from increased property values. As a home’s value rises, so does the available equity, potentially resulting in greater loan proceeds for the borrower.
Aging in Place
Reverse mortgage loans can provide the funds that many seniors need to age more comfortably in their homes. Seniors commonly use their proceeds to upgrade their homes to age in place more comfortably and to support their long-term care (LTC) strategies.
Boosting Retirement Finances
A reverse mortgage loan can provide a reliable source of tax-free** cash flow to supplement Social Security, pensions or other retirement savings, allowing homeowners to sustain their quality of life and cover living expenses during retirement.**
Non-Recourse Loan Peace of Mind
HECMs are the only reverse mortgage loans insured by the Federal Housing Administration (FHA). This makes HECMs non-recourse loans, meaning the borrower will never owe more than the home is worth at the time of sale.*
For example, suppose a borrower takes a reverse mortgage loan on their home when the housing market is high. The market is low when they pass away, but their heirs still wish to sell the property. In that case, the Mutual Mortgage Insurance Fund pays the remaining difference (administered by the FHA and financed via Mortgage Insurance Premiums paid by all borrowers). This offers great peace of mind to those concerned about passing debts onto heirs.
Considering a Reverse Mortgage in Anna?
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*There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change. **This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.