
Feeling a little financially insecure these days? You’re not alone, and there are options for homeowners to find security in uncertain times.
While real estate strategists have touted the resiliency of the local housing market, there are still concerns about a coronavirus-fueled recession, prompting homeowners to evaluate their options for saving money.

Leveraging with reverse mortgage proceeds is a smart consideration for seniors 62 or older in this down market, says Dallas
mortgage expert Jan McFarlane.
“Because of Texas’ highly protective homestead laws and constitutional standards, reverse mortgages are one of the most consumer-friendly mortgage loans in the country,” she explained.
A reverse mortgage allows a homeowner to access the unencumbered value of their property. It’s a mortgage loan that’s secured by their homestead and typically does not require monthly mortgage payments.
Is This For Me?
A reverse mortgage is ideal for retirees looking to supplement their income between retirement and access to Social Security benefits.
“First of all, most people don’t know that you have to qualify for this mortgage,” McFarlane said in a recent Q&A with Candy’s Dirt. “And the biggest myth is the lender takes your home when you die or no longer live in your home. Not true. Your home passes to your heirs.
“The reverse mortgage is a refinance of the equity in your house just like if you had a mortgage at a bank. You leave your home to your heirs and it is a non-recourse loan. Heirs are not responsible if your house is worth less than you owe, nor is the borrower.”
Indeed, the borrower does not have personal liability for a non-recourse loan, even if the resale value of the collateral dips below the loan balance over the course of the loan.
It’s Not About Income Or Social Status
Because there’s confusion around what a reverse mortgage actually is, there also may be a bit of a stigma. But McFarlane explained a reverse mortgage is a sophisticated loan that you must qualify for.
“The people I originate reverse mortgages with are some of the most sophisticated in town,” McFarlane said. “Many borrowers flow from the Park Cities, Preston Hollow, North Dallas, all over the Metroplex. A reverse mortgage can help send a grandchild to college or be used for medical care.”
If a borrower owes little or owns their home outright — their equity is in the walls of their house, McFarlane added.
“A reverse mortgage is like getting a hammer and knocking out the cash holed up in that wall,” she said. “A borrower may have significant investments they do not want to liquidate, but they need funds.”
A reverse mortgage is absolutely not filing bankruptcy or robbing Peter to pay Paul. And with an expert like McFarlane showing you the ropes, you’ll be confident you made the right decision before the process is complete.
For more information about reverse mortgages, contact Jan McFarlane at 214-548-9902 or [email protected].