Rob Reeves Reverse Mortgage

At Lone Star Reverse Mortgage, Inc., we specialize in providing tailored and friendly services for Texas senior homeowners seeking financial stability and independence. Our mission is to empower homeowners over the age of 62 by converting their home equity into cash income, enabling them to enjoy financial freedom with no monthly mortgage payments.

As a Texas-based and experienced company, we prioritize understanding each client's unique needs and offer expert guidance throughout the reverse mortgage process. Our commitment is to ensure that our clients are equipped with the necessary knowledge and resources to make informed decisions, ultimately alleviating financial stress and enhancing their overall quality of life.

What is a Reverse Mortgage?

A reverse mortgage is a type of home loan that allows homeowners aged 62 and older to convert a portion of their home equity into cash. In contrast with traditional mortgages, homeowners receive payments from the lender instead of making payments. Various options can be chosen for receiving these funds, such as a lump sum, monthly payments, or as a line of credit.

A reverse mortgage loan does not require monthly payments and is typically repaid when the homeowner sells the house, moves out permanently, or passes away. Throughout the duration of the reverse mortgage, homeowners retain the title and ownership of their home. However, they must continue to pay property taxes, homeowner's insurance, and any home maintenance costs.

Reverse Mortgage Benefits

• No monthly mortgage payments
• Ability to choose how to receive the funds: lump sum, monthly payments, or line of credit
• Homeowners maintain the title and ownership of their property
• The loan does not need to be repaid as long as the homeowner lives in the home
• Protection through non-recourse loans, ensuring that neither the homeowner nor their heirs owe more than what the home is worth

The Reverse Mortgage Process

1. Consultation: Schedule a no-pressure, no-obligation appointment to discuss your specific situation, answer your questions, and help determine if a reverse mortgage is beneficial.

2. Counseling: Complete a HUD-approved counseling session to ensure a clear understanding of the process and potential outcomes.

3. Application and Appraisal: Complete the application and provide necessary documents. An appraisal of the property will be conducted to determine its value.

4. Underwriting and Approval: Our underwriting team will review the application, ensuring that all requirements are met.

5. Closing: Upon approval, you'll schedule the closing where documents will be signed. A three-day rescission period follows, allowing time to reconsider the decision.

Texas-Specific Reverse Mortgage Features

In Texas, reverse mortgages have specific protections and provisions. For instance, Texas reverse mortgages often include a "cooling-off" period, providing borrowers additional time after closing to fully consider their decision.

Home Equity Conversion Mortgage (HECM) in Texas

In Texas, the most common type of reverse mortgage is a Home Equity Conversion Mortgage (HECM). This federally insured reverse mortgage program, regulated by the U.S. Department of Housing and Urban Development (HUD) and insured by the Federal Housing Administration (FHA), guarantees loan proceeds and offers protection for borrowers.

HECMs allow you to convert a portion of your home's equity into cash. The amount you can borrow is based on several factors, including your age, the appraised value of your home, current interest rates, and the HECM loan limit.

HECM Loan Limit and Factors Influencing Loan Amount

The Home Equity Conversion Mortgage (HECM) loan limit is set by the Federal Housing Administration (FHA) and can change from year to year. As of 2023, the HECM loan limit is $1,089,300.