Many seniors in Arlington, Texas, use reverse mortgage loans to increase their cash flow while remaining the full owners of their homes.
How Does a Reverse Mortgage in Arlington Loan Work?
In Arlington, Texas, homeowners who are 62 or older can use a reverse mortgage loan to convert a portion of their home’s equity into cash, enabling them to benefit from their equity without selling the property or taking out a loan that requires monthly payments. Instead, the borrower is responsible for property-related expenses such as taxes, insurance and maintenance, and any cash received is tax-free as it’s considered loan proceeds, not income.*
The loan amount is determined based on several factors, including the borrower’s age, the property’s value and the prevailing interest rates at the time of the loan. Generally, the loan is due and payable when the borrower moves out of the home, sells the property or passes away. If the borrower passes away, their heirs have the right of first refusal to purchase the property. If they opt to sell it, any remaining equity will go to them after settling the loan balance.
Our Reverse Mortgage Loans in Arlington, Texas
Home Equity Conversion Mortgages (HECMs)
HECMs are the most popular form of reverse mortgage loan and are the only type insured by the Federal Housing Administration (FHA). HECMs are non-recourse loans, which means there is no liability for an amount exceeding the home’s value when sold, ensuring that the borrower will not pass debt from their HECM to their heirs, as the home sale will cover the loan balance.** HECM borrowers may choose from various payment options, including a lump sum, a line of credit, monthly payments or a combination.
HECM for Purchase (H4P)
H4Ps are a specific type of reverse mortgage loan created for seniors who wish to purchase a new home, allowing them to use the equity from the sale of their current residence to increase their purchasing power, sometimes up to twice as much, while preserving other assets.*
Using an H4P enables many homeowners to relocate to more expensive areas or homes that would have otherwise been out of their budget. Unlike conventional mortgages, H4P borrowers are not required to make monthly payments on their new property. Instead, they need to pay for property-related expenses such as taxes, insurance and home maintenance.
Another advantage of the H4P is that if the home value increases over time and exceeds the borrowed amount, the homeowners or their heirs may receive the remaining equity when the property is sold. The additional buying power and potential for equity growth make H4Ps an excellent option for seniors looking to invest in a new home.
Jumbo Reverse Mortgage Loan
Jumbo reverse mortgage loans are designed for homeowners with high-value properties. The Federal Housing Administration (FHA) limits the amount that can be borrowed through a Home Equity Conversion Mortgage (HECM) to $1,089,300. A HECM may not be able to access the full home equity for properties with values above that threshold.
With a jumbo reverse mortgage loan, homeowners can borrow against their entire property value, enabling them to receive significantly more loan proceeds than they could with a HECM.
Arlington, TX Reverse Mortgage Loan Benefits
Reverse Mortgage Eligibility in Arlington, Texas
To qualify for a reverse mortgage loan, borrowers must meet several eligibility requirements:
About Arlington, Texas
Arlington is a vibrant city between Dallas and Fort Worth. The city has a diverse population of over 390,000 residents, of which about 39,000 are senior citizens. Arlington is the home of the Dallas Cowboys’ and the Texas Rangers’ home stadiums. The city also features many exciting cultural attractions, including the International Bowling Museum and Hall of Fame and the Arlington Museum of Art. Additionally, Arlington offers a wide range of outdoor recreational activities, such as hiking and biking trails, parks and lakes.
Arlington, Texas for Senior Citizens
Arlington has much to offer its seniors. The cost of living is lower than the national average, which is extremely helpful for people on a fixed income. Arlington also has an excellent healthcare system and a range of offerings for seniors, including transportation services, senior centers and ample outdoor activities.
Interested in a Reverse Mortgage Loan in Arlington, Texas?
Fill out the form and one of our reverse mortgage specialists will be in touch!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation. **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.