How to Find HUD and Other Reputable Loan Providers

A growing population of senior citizens is exploring their options for a reverse mortgage. Many are being heavily marketed by illegitimate businesses. Part of a successful reverse mortgage is having a trustworthy and experienced lender.

FHA Lender Limits: What They Mean to Texas Senior Homeowners

FHA limits are set county-by-county, nationwide. These mortgage limits reflect local home values and help keep housing affordable for every American. FHA limits are key in determining a borrower’s eligibility for a federally insured Home Equity Conversion Mortgage (HECM). For the average homeowner the local limits usually suffice. For homeowners with high-value homes the limits may be a bit too limiting.

Of the 254 counties in Texas almost all have FHA limits set right around the national average. A few have higher limits—those around San Antonio, and around Austin the limits are just slightly elevated.

Texas HUD Lenders

Close to 95% of reverse mortgage borrowers end up with a HECM. The program is flexible and, again, accommodates most homeowners’ home value/equity. But the associated costs are infamously high. HUD recommends that all borrowers choose a lender they approve. HUD is not a lender. You don’t apply directly to HUD or the FHA for a HECM reverse mortgage. But HUD does provide a free and well-maintained list of approved HUD lenders. The list is available online and is searchable by state as well as a number of other parameters. You can also pick up a list from a mortgage counselor.

Never pay money to obtain the HUD lender list.

Single Purpose Reverse Mortgages Available to Texas Seniors

Texas is one of 24 other states that offer senior homeowners a type of single purpose reverse mortgage. A single purpose reverse is traditionally administered through a state or local government and allows homeowners to leverage their home’s value in order to pay necessary costs associated with property taxes and home repairs.

Individual tax districts in the state administer the Texas Tax Deferral for the Elderly. Eligible applicants must be 65 or older or disabled, hold the title to the home, and prove a minimal income. Annual interest is 8% and the loan does not come due until the property is transferred (sold) or the owner dies, in which case the responsibility to settle with the local tax district falls to the estate executor and heirs.

Types of Reverse Home Mortgage Providers

Texas senior homeowners will come across a wide variety of financial institutions licensed to originate reverse mortgages of all kinds. Banks, federal credit unions, mortgage brokers and specialty reverse mortgage lenders all may provide services locally or nationally.

  • Bank of America is a nationally known retail banking institution that provides customers with a wide variety of personal and business banking solutions. The mortgage division handles forward, or traditional, home mortgages and two flexible reverse mortgage options: the HUD HECM and BOA’s proprietary Senior Equity Reverse Mortgage. BOA is HUD-approved.
  • EverBank Reverse Mortgage company is one of the leading reverse mortgage originators in the country. EverBank offers customers three reverse mortgages: their proprietary Reverse Select, the Fannie Mae Home Keeper and the HUD HECM.
  • Mission Mortgage of Texas is a regionally located company that specializes in all types of mortgages. For senior homeowners Mission currently offers three reverse home mortgages designed to provide the greatest borrowing flexibility: the HUD HECM, the Fannie Mae Home Keeper and the Jumbo Reverse Cash-Out mortgage.