Garland, Texas, Reverse Mortgage Loans

Meet Michael Inkman and the Inkman team, your reverse mortgage specialists in Garland, Texas.

Reverse mortgage loans are a financial option for seniors living in Garland, Texas, seeking to unlock their home’s equity.

The most common type of reverse mortgage loan is the Federal Housing Authority (FHA)-insured Home Equity Conversion Mortgage (HECM) loan. Unless noted otherwise, we’re referring to HECMs when discussing reverse mortgages.

How Does a Reverse Mortgage Loan Function?

Reverse mortgage loans allow homeowners aged 62 and older access to a portion of their home’s equity without the obligation of monthly mortgage payments, as long as the borrower pays property-related expenses such as insurance, taxes and maintenance.

Reverse mortgage loans are popular amongst Garland, Texas, seniors aiming to remain in their homes and gain additional financial flexibility. The funds from a reverse mortgage can be used for anything, such as home renovations, medical costs, or vacations.

Our Reverse Mortgage Loans in Garland, 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

Voluntary Monthly Mortgage Payments

Unlike traditional mortgages, monthly payments are not mandatory with reverse mortgage loans. Instead, the homeowner only needs to cover property-related expenses such as insurance, taxes and home upkeep. The loan balance becomes due when the homeowner sells the property, moves out or passes away.

Borrowers can choose to receive their funds as a lump sum, line of credit, monthly payments or combination with FHA insuring.

Potential for Home Value Appreciation

Garland, Texas, is a promising real estate market. Homeowners with reverse mortgage loans may benefit from their increased property values over time. 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 give seniors the funds needed to age more comfortably in their homes. Many use their proceeds to protect their retirement assets in down markets and to cover unexpected expenses that arise over time. This can be especially beneficial in Pflugerville, Texas, where the cost of living and housing prices may surpass those in other areas.

Secure Non-Recourse Loan

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.

Enhancing 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.**

Reverse Mortgage Qualification in Garland, Texas

To be eligible for a reverse mortgage in Garland, Texas, you must typically meet the following requirements:

Age: The borrower must be 62 or older.
Home Ownership: The borrower must own the home, and it must be their primary residence. Reverse mortgages are not available for vacation homes or investment properties.
Equity: The borrower must have significant equity in the home or own it outright.
Financial Capacity: The borrower must be able to pay property taxes, homeowners insurance and other property charges.
Counseling: The borrower must receive counseling from a U.S. Dept. of Housing and Urban Development (HUD)-approved counselor on the terms and obligations of the loan.

About Garland, Texas

Garland, Texas, part of the Dallas-Fort Worth metro area, offers a mix of suburban and urban life. Its diverse population and rich culture shape the city’s identity. Residents enjoy parks, community centers and a historic downtown with local shops. The city’s schools and location near highways contribute to its appeal, making Garland a distinct and accessible place to live.

Seniors in Garland, Texas find convenience and engagement. The city offers amenities like senior centers, parks and healthcare services. Affordable living and public transportation add to the ease. Seniors can also enjoy cultural events and a vibrant community. Overall, Garland provides a supportive environment for retirees.

Fun Facts About Garland

The city’s name, “Garland,” is said to have originated from the late 1800s when a local settler referred to the area as “Duck Creek.” Eventually, the name was changed to Garland in 1887 when the city was officially incorporated.
Garland is home to the “Guardian of the Galaxy,” a towering statue of a bluebird in flight, standing 22 feet tall. It has become a quirky landmark in the city.
The Spring Creek Forest Preserve features a 2.3-mile nature trail, providing a serene escape into nature within the city limits.
The Texas Pool is a unique shaped swimming pool in the form of the state of Texas, complete with the Lone Star marking the deep end. It’s a local landmark with a touch of Texan pride.
The Garland Landmark Museum, housed in a former Santa Fe depot, showcases the history of Garland through exhibits and artifacts, offering a glimpse into the city’s past.

Considering a Reverse Mortgage in Garland?

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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.