A Home Equity Conversion Mortgage (HECM) is a type of home loan that lets seniors convert a portion of the equity in their home into cash. This is the standard Reverse Mortgage. If you are 62 years of age or older and your home is your principal residence. No monthly loan payments are required, and this alone can provide much less stress when paying monthly living expenses.
For 2024 the Federal Housing Administration (FHA) increased the maximum claim amount on the Home Equity Conversion Mortgage (HECM) from $1,089,300 in 2023 to $1,149,825. The limit on the reverse mortgage is not the maximum loan amount but the maximum property value that can be used to calculate your available loan amount.
The funds available to you may be used for almost anything. If you need home renovations, college funds, transportation, medical expenses, vacation, or the security of emergency funds when needed.
What Can A HECM Reverse Mortgage Provide?
A HECM reverse mortgage in Dallas or throughout the state of Texas can provide a valuable financing alternative for qualified homeowners. The borrower retains ownership of the property and may sell the home at any time, keeping sales proceeds in excess of the mortgage balance and closing costs. A HECM reverse mortgage need not be repaid until the borrower moves, sells, or passes. If the loan exceeds the value of the property, the borrower (or the heirs) will owe no more than the actual value of the property.
The amount that will be available varies by borrower and depends on:
- Age of the youngest borrower
- Current interest rate and
- Lesser of appraised value or the HECM mortgage limit or the sales price.
- Closing costs are paid from the gross proceeds of the loan
The HECM offers 4 draw options;
- Monthly income for a fixed term, or a tenured life payment
- A Line of Credit
- Lump sum
- Any combination of the above
Apply Now for a HECM Reverse Mortgage in Dallas
We can help you apply for a HECM Dallas reverse mortgage or anywhere in Texas. To find out if you qualify now, give us a call today at (214) 269-3593 to schedule your reverse mortgage evaluation. Let’s get you the money you need to make the most of your golden years.
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