Reverse mortgage loans are a popular financing option for seniors in Fort Worth, Texas, that can provide seniors with a source of tax-free* cash flow while remaining the full owners of their homes.
How Does a Reverse Mortgage Work?
A reverse mortgage loan allows homeowners 62 or older to convert a portion of their home equity into cash without selling their home or making monthly mortgage payments. Instead, they only need to take care of upkeep and property charges, like taxes and insurance.
The loan amount is determined by the borrower’s age, the value of their home and current interest rates.
The loan is typically repaid when the borrower moves out of the home, sells it or passes away. If the owner passes, their heirs have the first right of refusal to buy the home. Should they decide to sell it, they’ll get any remaining equity in the property after repaying the loan balance.
Our Reverse Mortgage Loans in Fort Worth, 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.
Reverse Mortgage Loan Benefits
Reverse Mortgage Eligibility in Fort Worth, Texas
To be eligible for a reverse mortgage in Fort Worth, Texas, you must typically meet the following requirements:
About Fort Worth, Texas
Fort Worth is in North Texas between Dallas and Arlington and has a population of 900,000, of which 11% (98,000) are senior citizens. Fort Worth has a range of outdoor recreational opportunities, including parks, lakes, trails and a wealth of cultural opportunities. Known as the “City of Cowboys and Culture,” Fort Worth has a historic district called the Fort Worth Stockyards that celebrates the city’s cowboy heritage with daily cattle drives and rodeo shows.
Fort Worth, Texas for Senior Citizens
The cost of living in Fort Worth, Texas, is about 12% lower than the national average, which can be a great advantage for retirees on a fixed income. In addition to outdoor and cultural activities, Fort Worth has a range of amenities and services for seniors, including a robust healthcare system and public transportation options.
Interested in a Reverse Mortgage Loan in Fort Worth, 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.