Houston Reverse Mortgage
According to Wikipedia, Houston is the fourth-largest city in the United States, the largest city within the state of Texas, and “the energy capital of the world”. As of the 2008 U.S. Census estimate, the city has a population of 2.2 million within an area of 600 square miles. Houston is the seat of Harris County and the economic center of the Houston–Sugar Land–Baytown metropolitan area—the sixth-largest metropolitan area in the U.S. with a population over 5.7 million.
Houston was founded on August 30, 1836, by brothers Augustus Chapman Allen and John Kirby Allen on land near the banks of Buffalo Bayou. The city was incorporated on June 5, 1837, and named after then-President of the Republic of Texas—former General Sam Houston—who had commanded at the Battle of San Jacinto. The burgeoning port and railroad industry, combined with oil discovery in 1901, has induced continual surges in the city’s population. In the mid-twentieth century, Houston became the home of the Texas Medical Center—the world’s largest concentration of healthcare and research institutions—and NASA’s Johnson Space Center, where the Mission Control Center is located.
Houston’s economy has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building oilfield equipment; only New York City is home to more Fortune 500 headquarters in the city limits. The city has a population from various ethnic and religious backgrounds and a large and growing international community. It is home to many cultural institutions and exhibits—attracting more than 7 million visitors a year to the Houston Museum District.
Houston Reverse Mortgage Limits
By now you are probably familiar with the new law that President Obama signed on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009. This law will have a definite impact on senior homeowners in Houston because it raises the limits on reverse mortgages from $417,000 to $625,000. Of course there is no guarantee that every homeowner is going to receive the maximum amount of funds—there are several factors that factor into the equation when calculating the size of a reverse mortgage for which a homeowner qualifies. The new guidelines are designed to allow Houston seniors with higher priced homes to obtain more of the benefits of a reverse mortgage.
This change in loan limits is great news for Houston senior homeowners who were unable to obtain the funds they needed under the lower limitations. It helps those who own higher priced homes cash in on some of their equity though they are still limited to the ceiling of $625,500 regardless of the amount of equity they have in their homes.
Under the new legislation the FHA loan limit for a Home Equity Conversion Mortgage (HECM) a homeowner can obtain an insured reverse mortgage up to $625,500 depending on several factors including the age of the homeowner, the interest rate, the appraised value of the home, and the equity in the home. These all play a part in the amount a homeowner can obtain in a reverse mortgage. This is important for those homeowners whose homes are worth much more than the previous limit of $417,000 and thus did not fit into what the standard reverse mortgage programs could accommodate at that time.
If you live in the Houston area and are interested in taking advantage of the new limits on reverse mortgages you want to be aware the law expires the end of 2009. Beyond that point Congress will need to extend the deadline. In order to avoid the possibility that an extension isn’t granted you want to begin looking into obtaining a reverse mortgage so you can take advantage of the benefits it provides. Whether you’re looking to just get rid of some high interest debt or need the cash for other reasons, you will not be able to take advantage of the higher limits unless you make a decision.
Talk to a reverse mortgage specialist to find out the answers to your questions and ascertain whether this is the way you want to move. Since reverse mortgages are different from traditional mortgages, it’s essential to speak to someone who is an expert in that area in order to find out how much money you can obtain and discover if a reverse mortgage will meet your needs. Not everyone is going to quality for the maximum but if you have all of the necessary information you need, with the help of the reverse mortgage specialist you will be able to make the decision that is right for you.
Houston Links:
Houston City, Houston Seniors
