Generation Mortgage Company has announced that it is now offering Home Equity Conversion Mortgage (HECM) for purchase products in the state of Texas following the result of last fall’s ballot in which residents voted to pass a new constitutional amendment authorizing the sale of the product in the state. Insured by the Federal Housing Administration (FHA), the HECM for Purchase is a loan allowing seniors 62 years of age or older to purchase a home while enjoying the advantages of the HECM program, including no monthly principal and interest mortgage payments. With the addition of this option to the marketplace, Generation has rounded out its products and services available to Texas consumers, which include the availability of its innovative proprietary software at www.nu62.com that illustrates how strategic use of home equity can provide adults 62 and over with greater financial flexibility.
Prior to the Nov. 5 vote, Texas had been the only state in the country that did not permit seniors aged 62 or older to use a HECM when purchasing a new home.
“Due to Texas’ conservative homestead laws, conversion mortgages first became available in the state in 2000, which was much later than in many other areas of the country. However, after just 13 years, Texas is now the second-largest HECM producing state and represents nearly nine percent of the market,” said Generation CEO and President Colin Cushman. “That type of growth shows there is significant demand for HECM products in Texas, and with almost a quarter of the state’s homeowners aged 65 or older, we anticipate that the HECM for Purchase product will be quite popular among seniors who are looking to retire to a smaller home or to a different part of the state. This is a time of great opportunity – both for Texas residents and for our company.”
Prior to passing with 62 percent of the public vote, the measure succeeded in garnering significant support from the Texas legislature, which placed the proposition on the ballot after a combined vote of 170-1. In addition, virtually every major newspaper in Texas, including The Dallas Morning News, Fort Worth Star-Telegram, Houston Chronicle, San Antonio Express-News and The Austin Chronicle, endorsed the amendment’s approval, signifying its relevance to the Texas real estate market.
“The clear passage of the Proposition-5 amendment widely expands the conversion mortgage marketplace at a crucial time for many Texans," said Texans for Proposition-5 President Scott Norman, who led the effort to legalize HECM for Purchase products in the Lone Star State. “This is a goal that many of us in the local HECM industry have been working toward for more than four years, and it’s gratifying to know that voters recognize the value offered by a HECM for Purchase. Ideally, they will take advantage of the program now that it is up and running.”