Reverse Mortgage in Texas: A 2026 Guide for Homeowners 62+
A Texas reverse mortgage lets homeowners 62 and older convert part of their home equity into cash — with no required monthly mortgage payment. You keep the title and stay in your home as long as you live there, pay property taxes and homeowners insurance, and maintain the property. The loan is repaid when the last borrower sells, permanently moves out, or passes away.
*You remain responsible for property taxes, insurance, and home maintenance. Loan advances are generally not taxable; consult your tax advisor.
What is a reverse mortgage in Texas?
A reverse mortgage is a loan for homeowners 62+ that converts home equity into cash with no required monthly mortgage payment. You keep the title and stay in your home while meeting loan obligations (taxes, insurance, maintenance). The most common type is the FHA-insured HECM. The loan is repaid when you sell, permanently move out, or pass away.
Quick facts (2026)
- Minimum age: 62 (at least one borrower)
- 2026 HECM maximum claim amount: $1,249,125
- HUD-approved counseling: required (for you and your spouse, under Texas law)
- Texas waiting period: closing no sooner than 12 days after the required Texas notice
- You must keep paying: property taxes, homeowners insurance, and upkeep
- A reverse mortgage is a loan, not a government benefit — it must be repaid
How does a reverse mortgage work in Texas?
That’s the honest, complete picture in the answer box above. The rest of this page explains how it works, what it costs, what Texas law requires, and — just as important — when a reverse mortgage is not the right move. I’m Adam Bartling, a retired Army Captain and licensed Texas loan officer (NMLS #2213358). My approach is education first: no upfront credit check, no pressure, and I shop multiple lenders because I work for you — not a bank.
A reverse mortgage pays you from the equity you already own instead of you paying the lender each month. Interest and fees are added to the loan balance over time. The most common type is the FHA-insured Home Equity Conversion Mortgage (HECM). The balance comes due when the last borrower sells, moves out permanently, or dies.
With a traditional mortgage, you send a payment every month and your balance shrinks. A reverse mortgage runs in the opposite direction: no monthly principal-and-interest payment is required, and the balance grows. Because it’s a loan advance — not income — the money you receive is generally not taxable (confirm with your tax advisor).
You remain the owner. Your name stays on the title. Your obligations are simple but non-negotiable: live in the home as your primary residence, pay your property taxes and homeowners insurance on time, and keep the home in reasonable repair. Fall behind on those, and the loan can become due — so we build a realistic budget check into every consultation before you apply.
Who qualifies for a reverse mortgage in Texas?
To qualify for a HECM in Texas, at least one borrower must be 62 or older, the home must be your primary residence, and you need substantial equity — often roughly half or more, depending on age and rates. You must complete HUD-approved counseling, and a financial assessment confirms you can keep up taxes and insurance.
2026 HECM eligibility at a glance
| Criteria | HECM Standard (Texas) |
|---|---|
| Minimum age | 62 (at least one borrower) |
| 2026 HECM maximum claim amount | $1,249,125 (case numbers on/after Jan 1, 2026) |
| Equity needed | Substantial — commonly 50%+ of home value, varies by age and rates |
| Credit score | No minimum score; financial assessment reviews credit history and residual income |
| Income | No traditional income qualification — but you must show you can afford taxes, insurance, and upkeep |
| Property | Primary residence: single-family, 2–4 unit (you occupy one), HUD-approved condo, qualifying manufactured home |
| Counseling | HUD-approved session; in Texas, completed 5–180 days before closing, and your spouse must attest too |
| Texas waiting period | Closing no earlier than the 12th day after the required Texas reverse mortgage notice |
For homes valued above the HECM limit, proprietary (“jumbo”) reverse mortgages are available in Texas. Terms vary by lender — another reason shopping multiple lenders matters.
How much money can you get from a reverse mortgage?
Your available amount — the principal limit — depends on three things: the age of the youngest borrower (or eligible non-borrowing spouse), current interest rates, and your home’s appraised value up to the 2026 HECM limit of $1,249,125. Older borrowers with more equity and lower rates can access more. Any existing mortgage is paid off first.
There is no honest one-size answer, and be cautious of any website that quotes you a number without an appraisal and a rate lock. What I can do is run your actual scenario across multiple lenders — with no upfront credit check — so you see real numbers side by side before you commit to anything.
What does a Texas reverse mortgage cost?
Expect an upfront FHA mortgage insurance premium of 2% of the maximum claim amount, an annual 0.5% mortgage insurance charge on the loan balance, a capped origination fee, standard third-party closing costs, and a counseling fee (often around $125–$200). Most costs can be financed into the loan, but financed costs still reduce your equity.
That last sentence is the part many websites skip. “Little out of pocket” does not mean “free” — every financed dollar accrues interest. In your consultation we walk the closing disclosure line by line so you know exactly what the loan costs over 5, 10, and 15 years. (No rate quotes here on purpose: rates change daily and vary by lender and profile.)
What Texas laws protect reverse mortgage borrowers?
Texas reverse mortgages are authorized by Article XVI, Section 50(a)(7) of the Texas Constitution and governed by Section 50(k) — one of the most borrower-protective frameworks in the country. Key protections: a required written notice at least 12 days before closing, counseling for both spouses, and foreclosure generally only by court order.
The 12-day notice period
Under §50(k)(9), your loan cannot close before the 12th day after the lender gives you the specific written notice the Texas Constitution requires. Built-in time to review with your family, your counselor, or an attorney — and to walk away without penalty.
Counseling for you and your spouse
Federal law requires HUD-approved counseling for every HECM. Texas goes further: under §50(k)(8), both you and your spouse must attest in writing that you received counseling, completed no earlier than 180 days and no later than 5 days before closing. The counselor is independent — they don’t work for any lender, including us. Find approved counselors through HUD’s search tool (link below).
Court-ordered foreclosure
Unlike most states, a Texas reverse mortgage lien generally can be foreclosed only by court order (§50(k)(11)), except in limited circumstances such as the death of all borrowers. A meaningful extra layer of due process for Texas seniors.
Homestead protection and non-recourse
Texas homestead law plus FHA insurance means the HECM is non-recourse: when the loan is repaid, neither you nor your heirs can be required to pay more than the home’s value at that time.
What are the pros and cons of a reverse mortgage?
A reverse mortgage can be excellent for seniors who plan to stay in their home long-term and need cash flow — and a poor fit for short stays, thin equity, or homeowners who may struggle with taxes and insurance. Here are both sides, plainly, because you deserve the whole picture before a 30-minute sales pitch.
Advantages
- No required monthly mortgage payment (you still pay taxes, insurance, and upkeep)
- Eliminates an existing mortgage payment, freeing monthly cash flow
- Proceeds are loan advances, generally not taxable as income
- HECM line-of-credit option: the unused portion grows over time, regardless of home value
- Non-recourse: you and your heirs never owe more than the home is worth at repayment
- Strong Texas protections: 12-day notice, dual-spouse counseling, court-ordered foreclosure
Disadvantages
- Your loan balance grows over time, which reduces the equity left for you or your heirs
- Upfront costs are real: 2% upfront MIP plus origination and closing costs
- You must stay current on property taxes, insurance, and maintenance — default can trigger foreclosure
- Moving out for more than 12 consecutive months (for example, into long-term care) generally makes the loan due
- Proceeds held past the month received can affect Medicaid eligibility — talk to a Texas elder law attorney first
- If you plan to move within a few years, the costs usually outweigh the benefit
If the cons list gives you pause, good — that’s the counseling session and our consultation doing their job. Sometimes the right answer is a home equity loan, a cash-out refinance, downsizing, or doing nothing. We’ll tell you which.
Ready to learn more — no pressure, no obligation?
Call (713) 301-0007 — we answer until 8 pm — or schedule a free consultation. We serve all 254 Texas counties. Bring your adult children to the conversation; we encourage it.
LET’S TALKHow do you receive your money?
You choose from four payout structures: a lump sum (fixed-rate HECMs), monthly payments for a set term or for life in the home (tenure), a line of credit that grows over time, or a combination.
- Lump sum — All available funds at once; most often used to pay off an existing mortgage. Fixed-rate only.
- Monthly payments — Term or tenure payments to supplement Social Security or a pension.
- Line of credit — Draw only what you need. The unused line grows over time — a built-in hedge against rising costs. Often the most efficient option.
- Combination — Example: pay off your mortgage with a partial lump sum, keep a growing credit line in reserve.
Can you buy a home with a reverse mortgage in Texas?
Yes. Since a 2013 constitutional amendment (§50(k)(4)), Texans 62+ can use a HECM for Purchase to buy a new primary residence — often to downsize or move closer to family — with no required monthly mortgage payment. You bring a substantial down payment (typically 40–60%+, age-dependent) and the HECM covers the rest.
Note: the 3-business-day federal right of rescission does not apply to purchase transactions, so the Texas 12-day pre-closing notice period is your review window.
Reverse mortgage vs. HELOC vs. cash-out refinance — which fits?
A reverse mortgage suits homeowners 62+ who want to stay put without monthly payments. A home equity loan or HELOC suits borrowers of any age with income to support monthly payments. A cash-out refinance replaces your whole mortgage. Texas caps home equity/cash-out loans at 80% loan-to-value under Section 50(a)(6).
| Feature | Reverse Mortgage | Home Equity / HELOC | Cash-Out Refinance |
|---|---|---|---|
| Monthly payment | None required (taxes/insurance still due) | Required | Required |
| Age | 62+ | Any | Any |
| Qualification | Financial assessment | Full income/credit | Full income/credit |
| Growing credit line | Yes (HECM LOC) | No | No |
| Texas rule | §50(a)(7) / §50(k) | §50(a)(6) | §50(a)(6) |
| Repaid when | Sell, move out permanently, or pass away | Monthly until paid | Monthly until paid |
Compare: Texas Home Equity Loans · Texas Cash-Out Refinance · Texas Refinance Options.
What happens to your family and heirs?
When the last borrower leaves the home, heirs typically have 6 months (extendable up to 12) to settle the loan. They can sell and keep remaining equity, refinance to keep the home, buy it for 95% of appraised value or the balance — whichever is less — or walk away. FHA insurance covers any shortfall; heirs owe nothing out of pocket.
Non-borrowing spouse protections
If your spouse is under 62 or not on the loan, HUD’s eligible non-borrowing spouse rules may allow them to remain in the home after the borrower passes, provided requirements are met. This must be structured correctly at origination — it’s a standard part of our review, and one more reason Texas requires counseling for both spouses.
Why work with Bartling Lending?
Education first, always
Reverse mortgages are the most misunderstood product in lending. We explain everything in plain English — and the independent HUD counselor will confirm what we told you.
No upfront credit check
We evaluate your scenario properly before any credit inquiry.
We shop multiple lenders
As a broker, we work for you, not a bank. Lenders compete on rate and terms for your loan.
Army veteran owned
Retired Army Captain. The mission is your family’s financial security, not a commission.
A dedicated team, first call through closing
Same processor the whole way, and annual reviews after closing.
Helpful official resources:
Texas Reverse Mortgage FAQs
What is a reverse mortgage in Texas?
A reverse mortgage is a loan for homeowners 62+ that converts home equity into cash with no required monthly mortgage payment. You keep the title and stay in your home while meeting loan obligations (taxes, insurance, maintenance). The most common type is the FHA-insured HECM. The loan is repaid when you sell, permanently move out, or pass away.
How much can I borrow with a reverse mortgage in 2026?
It depends on the youngest borrower’s age, current interest rates, and your home’s appraised value, up to the 2026 HECM maximum claim amount of $1,249,125. Older borrowers generally qualify for a larger share of their home’s value. Any existing mortgage balance is paid off first from the proceeds.
Is reverse mortgage counseling required in Texas?
Yes. Federal rules require a HUD-approved counseling session for every HECM. Texas law additionally requires both the borrower and the borrower’s spouse to attest in writing to completing counseling no earlier than 180 days and no later than 5 days before closing. The counselor is independent of any lender.
Can I lose my home with a reverse mortgage?
You can stay in your home as long as you occupy it as your primary residence, pay property taxes and homeowners insurance, and maintain the property. If those obligations are not met, the loan can become due and foreclosure is possible — though in Texas, generally only through a court order.
What does a reverse mortgage cost?
Typical HECM costs include a 2% upfront FHA mortgage insurance premium, 0.5% annual mortgage insurance on the loan balance, a capped origination fee, third-party closing costs, and a HUD counseling fee. Most costs can be financed into the loan, but financed costs reduce remaining equity and accrue interest.
What happens to my heirs with a reverse mortgage?
Heirs typically have 6 to 12 months to settle the loan. They can sell the home and keep any remaining equity, refinance to keep the home, or purchase it for 95% of appraised value or the loan balance, whichever is less. Heirs are never personally liable for a shortfall; FHA insurance covers it.
What if I move into assisted living or a nursing home?
If you are out of the home for more than 12 consecutive months, the loan generally becomes due. If a co-borrower, or an eligible non-borrowing spouse under HUD rules, continues to live in the home, the loan can remain in place.
Does a reverse mortgage affect Medicaid in Texas?
Reverse mortgage advances are loan proceeds, not income, but funds retained past the month received can count as assets for Medicaid eligibility. Texans who may need Medicaid should consult a Texas elder law attorney before closing.
Adam Bartling
Loan Officer · NMLS# 2213358 · Retired U.S. Army Captain
Adam served 22 years in the U.S. Army and retired as a Captain before becoming an independent Texas mortgage broker. His approach is education first: no pressure, no upfront credit check, and plain-English answers — and the independent HUD counselor will confirm what he told you. Because he’s a broker, he shops multiple lenders so they compete for your business, and his goal is to be your lender for life, not just for one closing. More about Adam.
Ready to learn more — no pressure, no obligation?
Call (713) 301-0007 — we answer until 8 pm — or schedule a free consultation. We serve all 254 Texas counties. Bring your adult children to the conversation; we encourage it.
LET’S TALK