HECM Reverse Mortgage Eligibility Requirements

Determining HECM Reverse Eligibility

HECM Reverse eligibility standards must be met in order to participate in the advantages offered by reverse mortgage home loans, Texas borrowers, their home and financial profile must meet certain reverse eligibility factors set forth by HUD and FHA guidelines. We have assembled a list these eligibility factors to help prepare interested Texas homeowners with the tools to make intelligent and informed decisions about their participation in this unique, senior only, home loan.

HECM Reverse Eligibility RequirementsIf you are interested in seeing an estimate of what you may qualify for, if you are deemed eligible, use our free reverse mortgage calculator to get a no obligation estimate.

It’s called a reverse mortgage because of the way the loan works, where instead of the borrower paying back the lender for money borrowed, the lender pays the borrower money based on the equity in the home. Since it’s inception, HECM reverse mortgages have helped millions of U.S. homeowners access their home equity when traditional HELOC loans, typically requiring a significant and steady income source, were not a viable option.

Ask about our face to face in-home consultations and free appraisals for qualified Texas homeowners

Important Disclosure

  1. The borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and
  2. Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees.
  3. The loan balance grows over time and interest is charged on the outstanding balance
  4. At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
  5. Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.

Factors considered when determining HECM reverse eligibility

To qualify for a reverse mortgage, the following criteria must be met:

  • The primary borrower must be at least 62 years old, if married to a spouse that is under age 62, they may file as a non-borrowing spouse.
  • The subject property, or home being borrowed against, must be the borrowers primary residence, where they occupy the home for at least six months per year.
  • There must be sufficient equity in subject property. The amount of equity required may vary based on the lender or the specific loan program chosen to participate in.
  • Borrowers with an existing mortgage balance, should be aware that it will be paid off with the proceeds from the reverse mortgage at closing.
  • Borrowers must participate in a financial assessment process that assures they have the ability maintain continued payments of property taxes, homeowners insurance, HOA dues if applicable and other maintenance related expenses throughout the life of the loan. In some instances some of the loan proceeds will be set aside and reserved for paying these obligations.
  • HECM reverse eligibility is dependent on the borrower’s attendance of a required counseling session with a HUD-approved counselor who reviews the pros and cons of a reverse mortgages, discusses alternatives, and reviews the requirements for eligibility.

Want to get an immediate estimate of the amount you may qualify for?

Try Our Free Reverse Mortgage Calculator

HECM Reverse Eligibility Requirements Review

We hope that the list of HECM reverse eligibility requirements we provided gave you a better understanding of your qualification for this unique home loan. Our main goal is to ensure you have the information you need to make an educated decision about reverse mortgage loans and access to us as a trustworthy Texas lender.

Reverse mortgages can be a great option for qualified Texas homeowners looking to augment their retirement income or have additional financial resources that allow them to maintain or improve the freedom and lifestyle they’ve earned over years of hard work and sacrifice.

If you would like to have a free, no obligation discussion about the details of the reverse mortgage loan products available, do not hesitate to give us a call, we’d love to meet with you at your home or have a talk on the phone to help you learn everything you need to know about the HECM reverse mortgage loan.

For more information give us a call at (800) 215-0891

Or use our reverse mortgage calculator to get an estimate of the proceeds you may qualify for!

Mortgage and Insurance Solutions Inc. NMLS #1124365