Texas Votes for Reverse Mortgage Purchase

On November 5, 2013, Texas voted for Proposition 5 which allows the constitution to change to allow all Federal Housing Administration to be available to in Texas under the state’s rule, including the reverse mortgage purchase product. Proposition 5 was approved by Texas voters by a vote of 680,747 to 406,354.

Texas is the last state to approve the reverse mortgage purchase products, which allows seniors to buy a new home and apply for a reverse mortgage in one transaction. This now allows individuals, ages 62 years and older, in Texas to downsize or move to homes that better fit their needs without breaking the bank by using the reverse mortgage purchase product, also known as HECM for Purchase.

A perk of the reverse mortgage purchase product is that borrowers are not required to make monthly payments to the lender as long as they continue to live in the new home on a permanent basis. Like a reverse mortgage, once they permanently leave the home or the last borrower passes away, that’s when the loan will become due. For the reverse mortgage purchase, borrowers must put in a down payment that is calculated based on the age of the youngest borrower, the current expected interest rate and the price of your new home.

Learn more about the reverse mortgage purchase here.

Seniors who are looking to buy new homes may do so for a number of reasons, but many choose to do it for the sake of convenience in their older years. Some may look into downsizing a home that better fits their current needs and mobility, or would prefer to move closer to friends and family. The reverse mortgage purchase can also allow seniors to move to senior communities or closer to other amenities that they want to be near, like a hospital or shops.

To learn more about the reverse mortgage purchase product, you can speak with an advisor at 1-888-808-8486.

Read Related Articles:

HECM for Purchase Basics

What is HECM for Purchase? 

What Should Seniors Look for in a New Home? 

About the Author:

I have been working in the reverse mortgage industry for 20-plus years. My goal is to provide consumers the most up-to-date and relevant information about the reverse mortgage industry and how it can affect them. Thanks for reading!

-Alan F.