Texas Seniors Have Reverse Mortgage Option

In a reverse mortgage, a portion of the house’s equity is converted into tax free income, freeing up a lump sum that can be helpful to retirees. Most of the nation has had access to reverse mortgages for years; Texas has just now received a release letter from the US Department of Housing and Urban Development, allowing the reverse mortgage program to be offered in the Lone Star state. The release letter was dated, and effective, March 17th, 2006. The balance of the amount of equity pulled from the home benefits from a growth rate, a better option then most conventional lines of credit.

The rate allows the balance to grow at a rate that is competitive, giving seniors a tax free way to make money off their home equity. Originally, reverse mortgages in Texas had to fund on the first of the month, the only state to require a specific funding. The changed mandate now allows seniors to draw their money at any time of the month, instead of waiting upwards of 30 days for their funds.