HUD / FHA Reverse Mortgage Loan
A Reserve Mortgage is designed for senior citizens to borrow against a home. A reverse mortgage is named so because the borrower is typically not required to pay back the loan. Repayments are deducted from proceeds when the home is sold. This process is handled by the HUD and if the proceeds are insufficient to fully repay the loan, the HUD pays the shortfall to the mortgage lender.
To qualify for an FHA reverse mortgage individuals,
- Older than 62 years
- No current mortgage on the home
- No income or asset caps
Presently there is no limit on the value of homes that may qualify for a reverse mortgage. The HUD reverse loan may be paid to the borrower in lump sum, on monthly basis over an agreed period and as periodic payments as a line of credit.
Older borrowers are usually able to obtain reverse mortgages with a larger percentage on the home’s value. The amount of this mortgage loan that may be sought is further determined by the home’s value and interest rate.
Learn more about the Texas FHA Mortgage loan program. You can find other details on FHA loans here.
