Need help understanding what a Reverse loan is for Texas Seniors?  Go to Reverse Loan Guide for help.  If you need immediate help call (512) 328-2225.

8. How much money can I get from my home?
A borrower who uses an FHA-insured HECM will receive a reverse mortgage amount based on a formula which includes a Maximum Claim Amount. In general, this means the maximum amount you can receive will be determined by factors including the age of the borrower(s), and the appraised value of the property (or the maximum FHA mortgage amount for your area, if lower). For example, based on a loan at recent interest rates, a 65-year-old could borrow up to 26 percent of the home’s value, a 75-year-old could borrow up to 39 percent, and an 85- year-old could borrow up to 56 percent. You should discuss the formula with your lender and your HUD-approved housing counselor.

9. What if I want to take out more equity from my home than the FHA-insured mortgage limits for my area?
Like FHA’s home mortgage programs, HUD’s reverse mortgage is primarily intended for low- and moderate-income families. For instance, FHA maximum home mortgage amounts range from $78,660 to $155,250, depending on whether the home is in a standard housing-cost area, or an area determined by FHA to be a high-cost area. An owner with a property valued well beyond the FHA mortgage limits, and who has a large amount of equity, will not receive as much cash from a HECM as they might from another reputable private or public agency. Reverse mortgage programs are available in most states of the nation, including the District of Columbia and Puerto Rico, through HUD-approved lenders or highly regarded organizations like Fannie Mae. However, anyone interested in a reverse mortgage is encouraged to speak with a HUD-approved housing counseling agency first.
10. Should I use an estate planning service to find a reverse mortgage? I’ve been contacted by a firm that will give me the name of a lender for a “small percentage” of the loan?
HUD does NOT recommend using an estate planning service, or any service that charges a fee just for referring a borrower to a lender! HUD provides this information without cost, and HUD-approved housing-counseling agencies are available for free, or at minimal cost, to provide counseling and free referral to a list of HUD-approved lenders.

Need help understanding what a Reverse loan is for Texas Seniors?  Go to Reverse Loan Guide for help.  If you need immediate help call (512) 328-2225.