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You Can Use A Reverse Mortgage To Purchase A Texas Home
What is a Reverse Mortgage?
If you are 62 years or older and have significant equity in your home, you may be eligible for a Home Equity Conversion Mortgage (HECM) loan, commonly known as a Reverse Mortgage.
A HECM loan is insured by FHA and allows seniors to access a portion of the equity to be used however they choose, from paying off medical bills to supplementing their monthly income.
A HECM can also be used to purchase new home. Loan-to-value percentages are the same as for regular HECMs. The borrower can use the HECM to pay for part of the purchase, and then would have to bring a down payment equal to the remaining cost of the home.
The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the home or passes away. At that point, you or your estate must repay all the loan advances you received (including any used to finance loan costs or to pay off prior debt), plus all the interest. The remaining equity belongs to you or your estate.
In addition to being at least 62 years old, some key requirements include:
Owning the property outright, or ... more
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