Many seniors in Frisco, Texas, use reverse mortgage loans to increase their cash flow while remaining the full owners of their homes.
How Does a Reverse Mortgage in Frisco Work?
Homeowners aged 62 or above in Frisco, Texas, should pay serious attention to reverse mortgage loans. This type of loan allows borrowers to access a portion of their home’s equity without selling the property or making monthly mortgage payments. Instead, borrowers are responsible for property-related expenses, like taxes, insurance and maintenance. It’s important to note that cash obtained from a reverse mortgage loan is tax-free because it’s considered loan proceeds, not income.*
The loan amount available to borrowers depends on several factors, including the borrower’s age, the property value and interest rates. Repayment of the loan is generally due 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 buy the property. If the heirs decide to sell it, they will receive any remaining equity after clearing the loan balance.
Our Reverse Mortgage Loans in Frisco, Texas
Home Equity Conversion Mortgages (HECMs)
HECMs are the most popular type of reverse mortgage loan and are the only one backed by the Federal Housing Administration (FHA). They offer homeowners aged 62 or older the opportunity to access a portion of their home’s equity as a lump sum, line of credit or monthly payments.
One of the most significant benefits of HECMs is that they are non-recourse loans, meaning neither the borrowers nor their heirs will be held accountable for any amount exceeding the property’s market value at the time of sale.** The non-recourse feature can provide peace of mind to borrowers concerned about passing on debt to their loved ones.
HECM for Purchase (H4P)
H4Ps are a type of reverse mortgage loan designed for seniors who are interested in purchasing a new home. H4Ps allow them to use the equity from the sale of their previous home to increase their purchasing power, which is sometimes up to 200% higher than without an H4P.
The increased purchasing power can allow seniors to move to more expensive areas and homes that would otherwise be beyond their financial means. Unlike traditional mortgages, H4P borrowers are not required to make monthly payments on their new home. Instead, they are responsible for property charges such as taxes, insurance and home maintenance expenses.
Also, if the home’s value appreciates over time and exceeds the amount borrowed, homeowners or their heirs may receive any remaining equity after the home is sold. This potential for equity growth can be an attractive incentive for seniors who want to invest in a new home.
Jumbo Reverse Mortgage Loan
Jumbo reverse mortgage loans are for homeowners with high-value properties. With the most common type of reverse mortgage loan, the HECM, the FHA sets a borrowing limit of $1,089,300. With a jumbo reverse mortgage loan, homeowners can borrow against the entire value of their property, enabling them to receive significantly more proceeds than what they could get with a HECM.
Frisco Reverse Mortgage Loan Benefits
Reverse Mortgage Eligibility in Frisco, Texas
To qualify for a reverse mortgage loan in Frisco, Texas, there are eligibility requirements that borrowers must meet, including:
About Frisco, Texas
Frisco has a population of around 200,000 people, with about 6.3% (or 12,600) senior citizens. Frisco is known for its picturesque neighborhoods, excellent schools and thriving business community, including the headquarters of the Dallas Cowboys football team. In addition to its sports and business attractions, Frisco also has a vibrant arts and culture scene, with several notable museums, art galleries and performing arts venues.
Frisco, Texas, for Senior Citizens
Frisco is a senior-friendly city with a range of amenities and resources available to its older residents. These include an excellent healthcare system, a variety of senior centers, health and wellness programs and cultural activities. The cost of living in Frisco is somewhat higher than the national average, but it’s still lower than many other cities in Texas.
Interested in a Reverse Mortgage Loan in Frisco, 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.