What is a reverse mortgage? A reverse mortgage is a home loan for homeowners age 62 and older that lets you convert part of your home equity into cash. Instead of you paying the lender each month, the lender pays you. You keep the title to your home, and the loan is repaid when you sell, move out permanently, or pass away — never owing more than the home is worth.
🔑 Key Takeaways
- You must be 62 or older, occupy the home as your primary residence, and have significant equity.
- The most common type is the HECM, insured by the FHA. The 2026 HECM lending limit is $1,249,125.
- You make no monthly mortgage payments — but you must keep paying property taxes, homeowners insurance, and maintenance.
- Texas is the only state that regulates reverse mortgages in its constitution, adding protections like mandatory counseling and a 12-day review period.
- It’s a non-recourse loan — you and your heirs can never owe more than the home’s value.
How Does a Reverse Mortgage Actually Work?
With a traditional “forward” mortgage, you borrow money to buy a home and your balance shrinks every month as you pay it down. A reverse mortgage flips that arrangement. You’ve already built equity over decades — a reverse mortgage lets you tap into that equity while you continue living in the home. Rather than writing the bank a check each month, the lender advances funds to you, and the loan balance grows slowly over time as interest and fees are added.
The most common reverse mortgage by far is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Congress created the HECM program in 1987 specifically to help older homeowners age in place. Because it carries FHA insurance, the HECM comes with strong federal consumer protections — and in Texas, those federal protections are layered on top of even stronger state constitutional ones.
Here’s the part most people find reassuring: you keep ownership and title to your home. The lender does not own your house. You can stay as long as you live there as your primary residence, keep up with property taxes and insurance, and maintain the property. The loan only becomes due when the last borrower sells the home, moves out permanently, or passes away.
As a 100% mortgage broker, Adam and his team don’t work for a single bank. We shop multiple HECM lenders so they compete for your business — which is how we make sure a reverse mortgage is structured around your goals, not a lender’s quota. And our education-first approach means we’ll tell you honestly when a reverse mortgage isn’t the right move. Learn more on our Texas reverse mortgage page.
Why Texas Reverse Mortgages Are Different
Texas is the only state in the country that regulates reverse mortgages at the constitutional level. Under Article XVI, Section 50(a)(7) of the Texas Constitution — with detailed rules in Sections 50(k) through 50(v) — Texas reverse mortgages must meet requirements that go well beyond federal guidelines. These provisions were written to protect older Texans from the predatory lending that harmed seniors in other states. Here are the protections that matter most to you:
🎓 Mandatory Independent Counseling
Before you can close, you must complete counseling with an independent, HUD-approved counselor. The session must be completed no earlier than 180 days and no later than 5 days before closing. You — and your spouse — attest in writing that you received it. This is your unbiased education step, separate from any lender.
⏳ 12-Day Review Period
Your loan cannot close until at least 12 days after the lender gives you a detailed written disclosure of your rights and obligations. This built-in cooling-off window gives you time to read everything, ask questions, and reconsider with no pressure.
🛡️ Non-Recourse Guarantee
A Texas reverse mortgage is non-recourse. Neither you nor your heirs can ever be personally liable for more than the home’s value. If the loan balance ever exceeds what the home sells for, FHA insurance covers the difference — never your family.
⚖️ Lender Forfeiture Penalty
Under Section 50(k)(7), if a lender fails to make the loan advances it promised and doesn’t fix it after you give notice, the lender forfeits all principal and interest. Few states put that kind of accountability on the lender.
🏠 Court-Order Foreclosure Protection
In most circumstances, a lender must obtain a court order before foreclosing on a Texas reverse mortgage, and must first give you written notice and a chance to cure the issue. This is an extra layer of due process Texas seniors don’t get in many other states.
Note: Texas also has unique consent rules — generally every owner and each owner’s spouse must consent to the loan in writing, even a spouse who isn’t on the title. Whether a younger, non-borrowing spouse changes your options is exactly the kind of detail we review with you up front. Adam is not an attorney or tax advisor; for legal or tax questions, consult a licensed professional.
Who Qualifies for a Reverse Mortgage in Texas?
Age 62 or Older
At least one borrower must be 62+. Generally the older you are, the more equity you can access.
Primary Residence
The home must be where you live most of the year. Single-family homes, many condos, and 2–4 unit properties you occupy can qualify.
Significant Equity
You typically need to own the home outright or have a low balance. Any existing mortgage is paid off first with reverse proceeds at closing.
Financial Assessment
There’s no minimum credit score, but the lender confirms you can keep up with taxes, insurance, and upkeep. There’s no upfront credit check with us.
One important obligation continues for as long as you have the loan: you must stay current on property taxes, homeowners insurance, and basic maintenance. Falling behind on these is one of the few things that can put a reverse mortgage into default — which is why the upfront counseling and our honest planning matter so much.
How Much Can You Borrow in 2026?
The amount you can access — called your principal limit — depends on four things: the age of the youngest borrower, current interest rates, your home’s appraised value, and any mortgage balance that has to be paid off. As a rule of thumb, older borrowers with more equity and lower rates can access a larger share of their home’s value.
📌 2026 HECM Lending Limit
$1,249,125
This is the maximum home value the FHA will count when calculating your reverse mortgage — up from $1,209,750 in 2025, the tenth straight yearly increase. It’s a single national figure that applies in every Texas county. If your home is worth more than this, only value up to the limit counts toward your proceeds.
For homes valued above the HECM limit, a proprietary (or “jumbo”) reverse mortgage may let you access more — some programs reach up to $4 million. These are private loans, not FHA-insured, so they carry fewer of the federal protections but can be the right fit for higher-value Texas homes. We’ll compare both when we run your numbers.
A quick reality check: a reverse mortgage does not give you 100% of your home’s value. After accounting for your age, rates, and required reserves, most borrowers can access roughly 40–60% of the home’s value. The exact figure is unique to you, and we can model it in a free, no-pressure consultation.
How Do You Get Paid?
One of the most flexible features of a HECM is that you choose how the money comes to you. You can even combine these options.
📈 Line of Credit
Draw funds only as you need them. The unused portion actually grows over time, making this a popular “standby” safety net for retirement.
📅 Monthly Payments
Receive a steady check each month — for a set number of years (term) or for as long as you live in the home (tenure). Great for supplementing fixed income.
💰 Lump Sum
Take a one-time, larger draw at closing — useful for paying off an existing mortgage, covering a big expense, or funding home modifications.
🔀 Combination
Mix and match — for example, a lump sum to clear your current mortgage plus a line of credit for future needs. We help you design the right blend.
Reverse mortgage advances are generally treated as loan proceeds, not taxable income, and in Texas they are not counted as income or, while undisbursed, as proceeds for many means-tested benefit programs. Because everyone’s situation differs — especially with Medicaid — we always recommend confirming with a tax or benefits professional before you decide.
Reverse Mortgage vs. Other Ways to Tap Equity
A reverse mortgage isn’t the only way to access your home’s equity. Here’s how it compares to two popular alternatives for Texas homeowners.
| Feature | Reverse Mortgage | Home Equity Loan / HELOC | Cash-Out Refinance |
|---|---|---|---|
| Monthly payment | None required | Required | Required |
| Age requirement | 62 or older | Adult (18+) | Adult (18+) |
| How you’re paid | Line of credit, monthly, lump sum, or mix | Lump sum (loan) or draw line (HELOC) | Lump sum at closing |
| Income to qualify | Flexible (financial assessment) | Full income & credit underwriting | Full income & credit underwriting |
| When repaid | When you sell, move out, or pass away | On a fixed monthly schedule | On a fixed monthly schedule |
| Best for | Seniors wanting cash flow with no monthly payment | Owners who can handle a payment and want a set amount | Owners who also want a lower rate or term change |
Still weighing your options? Compare a Texas home equity loan, a cash-out refinance, or a standard rate-and-term refinance — we’ll lay out the real trade-offs side by side.
The Texas Reverse Mortgage Process, Step by Step
Free Consultation & Strategy Review
We start by understanding your goals — no upfront credit check. We model your numbers, compare HECM vs. proprietary options, and tell you honestly whether a reverse mortgage fits.
HUD-Approved Counseling
You complete an independent counseling session (required by Texas law). The counselor reviews costs, alternatives, and your obligations so you go in fully informed.
Application & Financial Assessment
We submit your application and confirm you can maintain taxes, insurance, and upkeep. Your dedicated processor stays with you from here to closing.
Home Appraisal
An FHA-approved appraiser establishes your home’s value — a key input in calculating your principal limit.
Disclosure & 12-Day Review
You receive your detailed written disclosure and the Texas-required review period begins. Underwriting finalizes your file during this window.
Closing & Funding
You sign, any existing mortgage is paid off, and your funds are set up the way you chose — line of credit, monthly payments, lump sum, or a combination.
Pros and Cons: Is It Right for You?
✅ The Upside
- No required monthly mortgage payment
- You keep ownership and title to your home
- Proceeds are generally tax-free (loan advances)
- Non-recourse — you and your heirs never owe more than the home’s value
- Flexible payout options, including a credit line that grows
- Strong Texas constitutional protections
⚠️ The Trade-Offs
- Your loan balance grows over time, reducing the equity left to heirs
- Upfront costs include mortgage insurance, origination, and closing fees
- You must keep paying taxes, insurance, and maintenance or risk default
- Moving out long-term (often 12+ months) can make the loan due
- It may affect certain means-tested benefits — confirm with an advisor
A reverse mortgage is a powerful tool for the right homeowner — and the wrong move for others. Our job is to help you see clearly which one you are, with no pressure either way.
What Happens to Your Home and Your Heirs?
This is the question that worries families most, so let’s be direct. When the last borrower passes away or permanently leaves the home, the loan becomes due. Your heirs then have choices, and the non-recourse protection is on their side the entire time.
If your heirs want to keep the home, they can pay off the reverse mortgage — typically the lesser of the loan balance or 95% of the home’s current appraised value. If they’d rather sell, any remaining equity after the loan is repaid belongs to them. And if the home is worth less than the balance, FHA insurance covers the shortfall — your family is never on the hook for the difference.
Because a reverse mortgage spends down equity over time, it’s worth having an open family conversation early. We’re glad to walk through the numbers with you and your adult children together so everyone understands the plan.
Texas Reverse Mortgage FAQs
Do I still own my home with a reverse mortgage?
Yes. You keep ownership and title to your home. The lender places a lien, just like a regular mortgage, but you remain the owner. You can stay as long as you live there as your primary residence and keep up with property taxes, insurance, and maintenance.
What is the 2026 reverse mortgage limit in Texas?
The 2026 HECM lending limit is $1,249,125, up from $1,209,750 in 2025. This single national figure applies in every Texas county. It caps the home value the FHA will count when calculating your proceeds — your actual available funds depend on your age, interest rates, and any mortgage payoff.
How old do I have to be to qualify in Texas?
At least one borrower must be 62 or older. Texas also has unique consent rules requiring each owner and each owner’s spouse to consent in writing — even a spouse not on the title. If you have a younger spouse, special non-borrowing-spouse protections may apply, which we’ll review with you up front.
Is reverse mortgage counseling required in Texas?
Yes. Texas law requires you to complete an independent session with a HUD-approved counselor before closing — no earlier than 180 days and no later than 5 days before. You and your spouse attest in writing that you received it. This unbiased education step is one of the strongest protections in Texas.
Will my heirs be stuck with the debt?
No. A reverse mortgage is non-recourse. Your heirs can keep the home by paying off the lesser of the loan balance or 95% of the appraised value, or they can sell and keep any leftover equity. If the home is worth less than the balance, FHA insurance covers the difference — your family is never personally liable.
Are reverse mortgage funds taxable?
Reverse mortgage advances are generally treated as loan proceeds rather than taxable income, so they typically aren’t taxed. They also are not counted as income for many means-tested programs in Texas. Because situations vary — especially with Medicaid — confirm the specifics with a tax or benefits professional before deciding.
Can I use a reverse mortgage to buy a home?
Yes. The HECM for Purchase program lets a qualifying buyer 62 or older purchase a new primary residence using a reverse mortgage — combining the home purchase and the reverse mortgage into one transaction. Texas authorized reverse mortgages for purchase by constitutional amendment, so this option is available to Texas seniors.
What can cause a reverse mortgage to become due?
The loan becomes due when the last borrower sells the home, moves out permanently (generally for 12 or more consecutive months), or passes away. It can also become due if you stop paying property taxes or homeowners insurance, let the home fall into disrepair, or otherwise break the loan terms — which is why staying current on those obligations is essential.
Do you pull my credit just to give me an estimate?
No. We offer a free consultation with no upfront credit check. As a 100% mortgage broker, we shop multiple lenders so they compete for your business, then walk you through honest numbers and options before you commit to anything.
Adam Bartling
Owner, Bartling Lending · Loan Officer · NMLS# 2213358
Adam is a retired U.S. Army Captain and the veteran owner of Bartling Lending. As a 100% mortgage broker, Adam and his team shop multiple lenders so they compete for your business — you work with people who work for you, not a bank. With an education-first approach, Adam helps Texas seniors, homebuyers, and investors understand every option before making one of life’s biggest financial decisions. Serving Texas homeowners with honesty and a service-first mentality.
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Bartling Lending · Adam Bartling, Loan Officer NMLS# 2213358 · Serving Texas · Equal Housing Lender
This article is for educational purposes only and is not financial, tax, or legal advice. Reverse mortgage programs, rates, and terms are subject to change and credit approval. Consult a licensed professional regarding your individual situation.