Reverse mortgage loans are a popular financial solution in Denton, Texas, for senior homeowners to tap into their home equity.
The most popular type of reverse mortgage loan is the Home Equity Conversion Mortgage (HECM) loan. Unless stated otherwise, we’ll be referring to HECMs when we talk about reverse mortgage loans.
Understanding Reverse Mortgage Loans
Reverse mortgage loans offer homeowners aged 62 and above the chance to tap into their home equity without having to make monthly mortgage payments. Instead, the borrower is responsible for property-related expenses such as insurance, taxes and maintenance.
Seniors in Denton, Texas, who want to stay in their homes while gaining extra financial flexibility may find reverse mortgages loans to be an excellent solution. The funds from a reverse mortgage loan can be used for virtually any purpose, such as home enhancements, medical bills or simply enjoying retirement to the fullest.
Our Reverse Mortgage Loans in Denton, 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
Qualifying for a Reverse Mortgage in Denton, Texas
To be eligible for a reverse mortgage in Denton, Texas, you must typically meet the following requirements:
About Denton, Texas
Denton, Texas is located in the northern part of the Dallas-Fort Worth metroplex. Its historic downtown square features shops, music venues and dining spots. Denton emphasizes the arts, with plenty of galleries and theaters, along with events like the Denton Arts & Jazz Festival. The city offers outdoor spaces and parks for a balanced lifestyle.
Seniors in Denton, Texas experience a mix of comfort and engagement. The city offers amenities like senior centers, healthcare services and parks for social interaction. Affordable living and convenient transportation adds to the city’s ease of living. Overall, Denton provides a supportive environment for seniors to thrive in their retirement.
Fun Facts About Denton
- Denton is renowned for its vibrant music scene, earning it the title “Little D” as a nod to Austin’s “Live Music Capital” status.
- Denton was once a hub for horse ranching and breeding. This equestrian heritage is still evident in the city’s culture and events.
- The “Goatman’s Bridge,” a historic iron truss bridge in Denton, is said to be haunted by a goat-like figure. It’s a popular spot for paranormal enthusiasts.
- Hickory Creek Park features a reservoir with opportunities for fishing, boating and picnicking.
- The Denton County Courthouse-on-the-Square, built in 1896, stands as a prominent landmark in the city’s historic downtown.
- The Little Chapel-in-the-Woods on the Texas Woman’s University campus was designed by architect O’Neil Ford. Its distinctive design and setting make it a sought-after wedding venue.
Interested in a Reverse Mortgage Loan in Denton?
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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.