Texas Reverse Mortgage

Texas Reverse Mortgage for Seniors 62 and Older

A Texas reverse mortgage lets homeowners 62 and older convert home equity into cash — with no monthly mortgage payments required. You retain title to your home and continue living in it. The loan is repaid when you sell, move out, or pass away.

We originate reverse mortgages in Texas and five other directly licensed states: California, Colorado, Oregon, Washington, and Idaho.

Texas-Specific Reverse Mortgage Rules

Texas regulates reverse mortgages under the Texas Constitution (Article XVI, Section 50(k)). These rules add consumer protections that are specific to Texas and differ from the general HECM program requirements:

12-Day Cooling-Off Period Under Texas Constitution Article XVI, Section 50(k)(9), a reverse mortgage may not close before the 12th day after the lender provides the required written disclosure notice. Additionally, HUD-approved counseling must be completed between 5 and 180 days before closing. Plan for closings to be scheduled at least two weeks after disclosures are delivered.

Attorney-Close Requirement Texas reverse mortgage loans must be closed at the office of the lender, an attorney at law, or a title company. In practice, most closings happen at a title company office. This is standard in Texas real estate and typically does not add significant cost or delay.

Why Texas Has These Rules These protections were added to the Texas Constitution specifically because reverse mortgages involve using a senior’s primary residence as collateral. Texas historically has among the strongest homestead protections in the country — Section 50(k) extends those protections into the reverse mortgage context.

Texas Property Tax Considerations for Reverse Mortgage Borrowers

Senior Property Tax Deferral Texas Tax Code Section 33.06 allows homeowners 65 and older to defer property tax payments — you apply with your county appraisal district. Deferred taxes continue to accrue interest at 5% annually and become due when the property is sold or you no longer occupy it as your primary residence.

A reverse mortgage generally requires borrowers to remain current on property taxes. Deferring taxes while carrying a reverse mortgage requires coordination — a lender can set up a property tax escrow from loan proceeds to handle this, depending on the program.

No State Income Tax Texas has no state income tax. Reverse mortgage proceeds are not considered income under federal law (and Texas has no separate income tax to consider), so funds received through a reverse mortgage are generally tax-free regardless of whether they’re taken as a lump sum, monthly payments, or line of credit. Consult a tax professional for your specific situation.

How You Can Receive the Funds

Reverse mortgage borrowers choose how they want access to their equity:

• Lump sum — all proceeds at closing (fixed-rate HECM only)
• Monthly payments — tenure (for life) or term (set number of years)
• Line of credit — draw funds as needed; unused line grows over time
• Combination — any mix of the above

The amount available depends on your age, current interest rates, and home value. Older borrowers with higher-value homes and lower rates generally access more.

Texas Retirement Markets We Serve

We work with Texas senior homeowners across the state, including:

• Hill Country — Fredericksburg, Kerrville, Wimberley, Boerne, Comfort, Marble Falls
• Austin metro — Lake Travis area, Horseshoe Bay, Lakeway, Georgetown, Round Rock
• DFW — Southlake, Grapevine, Colleyville, Flower Mound, Frisco, McKinney
• Houston — Sugar Land, Katy, The Woodlands, Clear Lake, League City
• San Antonio — Stone Oak, Alamo Heights, Helotes, Hill Country Village
• Coastal Texas — Rockport, Port Aransas, Corpus Christi, South Padre Island, Galveston

HECM vs. Jumbo Reverse Mortgage in Texas

For Texas homes priced above the HECM lending limit, jumbo proprietary reverse programs provide access to equity the HECM can’t reach.

Frequently Asked Questions

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1st Nationwide Mortgage, NMLS 1281. Texas SML License #1437886. Reverse mortgages subject to borrower qualification, HUD counseling, property appraisal, and program availability. Texas reverse mortgages are subject to Texas Constitution Article XVI, Section 50(k) requirements including the 12-day cooling-off period and attorney/title company close requirement. HECM loans are FHA-insured. Not all applicants will qualify. This is not a commitment to lend. Available in California, Colorado, Oregon, Washington, Texas, and Idaho only.