Reverse Mortgages in Texas
If you're 62 or older, your Texas homestead can work for you. Turn your home equity into cash with no monthly principal or interest payment — or use a reverse mortgage to purchase your next primary residence in Texas.
Texas Reverse Mortgage at a Glance
An FHA-insured Home Equity Conversion Mortgage (HECM) on a Texas homestead is also governed by Article XVI, Section 50(k) of the Texas Constitution. Instead of you making monthly principal and interest payments to the lender, you access your home equity, and no principal or interest payment is due until an event such as the death of all borrowers, the sale or transfer of the home, or all borrowers no longer occupying it for more than 12 consecutive months without the lender's written approval.
| Feature | Texas HECM & Section 50(k) Rule |
|---|---|
| Minimum Age | 62 for the youngest borrower on an FHA HECM (under the Texas rule for proprietary loans, at least one owner or spouse must be 62) |
| Property Requirement | Must be your Texas homestead and principal residence |
| Equity Requirement | Own the home outright or have a low balance that is paid off at closing |
| Monthly Principal & Interest | No payment is due as long as you live in the home and meet your loan obligations |
| 2026 HECM Limit | $1,249,125 maximum claim amount (current published figure for 2026 case numbers; confirm with your lender) |
| Spousal & Owner Consent | Voluntary written lien requiring the consent of each owner and each owner's spouse |
| Your Ongoing Obligations | Pay property taxes, homeowners insurance, and property charges, and keep the home habitable and in good repair |
| Mandatory Counseling | Must be completed no earlier than 180 days and no later than 5 days before closing (with a HUD-approved counselor for a HECM) |
| 12-Day Constitutional Notice | Cannot close before the 12th day after the lender provides the Texas Important Notice to Borrowers, which both you and the lender must sign |
Three Ways to Use a Reverse Mortgage in Texas
Texas homeowners use reverse mortgages in three primary ways. The right fit depends on your home's value and whether you plan to stay in your current homestead or purchase a new one.
| Option | Best For | How It Works |
|---|---|---|
| HECM (Traditional) | Staying in your current Texas home | Pays off your existing mortgage (including an existing Section 50(a)(6) home equity loan) and provides funds based on your equity with no required monthly principal or interest payment. |
| Reverse Mortgage for Purchase | Relocating or downsizing in Texas | Authorized under Texas Constitution Section 50(k)(4) to fund the purchase of a homestead you will occupy as your principal residence. |
| Proprietary Reverse Mortgage | Couples where only one spouse is 62 or older | A non-FHA reverse mortgage. Under Texas law, a proprietary reverse mortgage requires only that the borrower or the borrower's spouse be 62 or older. |
Common Texas Reverse Mortgage Uses
Eliminating a Monthly Mortgage Payment
Retire an existing purchase mortgage or refinance a Texas Section 50(a)(6) home equity loan into a reverse mortgage so you no longer owe monthly principal and interest.
Buying Your Next Texas Homestead
Use a reverse mortgage for purchase to buy a home closer to family or better suited to retirement, as long as you will occupy it as your principal residence.
Supplementing Retirement Cash Flow
Convert built-up home equity into loan proceeds you can use for living expenses, healthcare, or home upkeep. Under the Texas Constitution, reverse mortgage advances count as loan proceeds rather than income for Texas means-tested benefits.
Planning With a Younger Spouse
For an FHA HECM, the youngest borrower must be 62, and HUD rules recognize non-borrowing spouses, who must also receive counseling. For a proprietary reverse mortgage, Texas law requires only that the borrower or the borrower's spouse be 62 or older.
Setting Aside Funds for Taxes & Insurance
FHA rules require enough funds or a dedicated set-aside to cover property taxes, homeowners insurance, and maintenance so your homestead stays protected.
Protecting Family Wealth & Heirs
Because every Texas reverse mortgage is non-recourse by constitutional mandate, no owner or spouse has personal liability for the debt beyond the home itself.
Understanding Costs & Texas Fee Rules
Under the Texas Constitution, a reverse mortgage rate may be fixed, adjustable, or contingent on appreciation, and interest may accrue and compound. Unlike a Texas Section 50(a)(6) home equity loan, a reverse mortgage does not require monthly principal or interest payments while you live in the home.
| Cost or Rule | How It Works in Texas |
|---|---|
| Interest Rate | May be fixed, adjustable, or contingent on appreciation under the Texas Constitution. Rates change daily; a participating lender can quote today's rate. |
| Closing Costs | Closing costs vary by loan and lender. Ask your lender for an itemized estimate before you apply. |
| No Per-Advance Transaction Fees | Under Texas Constitution Section 50(v), a lender may not charge any transaction fee solely in connection with an advance of funds after the reverse mortgage is established. |
| No Card or Checkbook Access | Texas law prohibits accessing reverse mortgage advances through a credit card, debit card, or similar device, or by preprinted check. |
| Ongoing Property Charges | You remain responsible for paying Texas property taxes, homeowners insurance, and maintenance costs on time. |
Texas Section 50(k) Rules & Homestead Protections
Texas writes strict reverse mortgage consumer protections directly into Article XVI, Section 50(k)–(p) and (v) of the Texas Constitution. Every valid reverse mortgage on a Texas homestead must follow these rules.
| Texas Rule | What It Means for You |
|---|---|
| 5-to-180-Day Counseling Window | You and your spouse must complete counseling on reverse mortgages and financial alternatives at least 5 days and no earlier than 180 days before closing, and sign a written attestation. |
| 12-Day Signed Notice Wait | Your loan cannot close before the 12th day after the lender provides — and both you and the lender sign — the separate statutory Important Notice to Borrowers. |
| Property Tax Deferral Warning | The Texas constitutional notice specifically warns that taking out a reverse mortgage may cause you to lose a Texas property-tax deferral. Review any existing tax deferral before you apply. |
| Strict Non-Recourse Protection | Under Section 50(k)(3), the loan is without recourse for personal liability against each owner and spouse. |
| Cure Notice & Court-Order Foreclosure | Before foreclosing, the lender must give at least 30 days' notice (20 days for a lien-priority default) to cure, pay off, or give a deed in lieu. A court order is required to foreclose unless the ground is the death of all borrowers or the sale or transfer of the home. |
| Lender Forfeiture Penalty | If a lender fails to make required advances under the reverse mortgage and fails to cure after notice, the lender forfeits all principal and interest on the loan. |
| Homestead Acreage Protections | A Texas urban homestead covers up to 10 contiguous acres, while a rural homestead covers up to 200 acres for a family (or 100 acres for a single adult under the Property Code). |
Thinking About Your Heirs?
Under the Texas Constitution, a reverse mortgage is non-recourse — no owner or spouse is personally liable for the debt beyond the homestead itself. No principal or interest payment is due until an event such as the death of all borrowers or the sale or transfer of the home. A licensed loan officer can walk you and your family through how it would work for your home.
Check Reverse Mortgage EligibilityHow to Get a Reverse Mortgage in Texas
- 1
Review Your Goals & Homestead Equity
Whether you want to eliminate an existing mortgage payment, refinance a Section 50(a)(6) loan, or buy a new Texas home, we help you compare HECM and proprietary options.
- 2
Complete Required Counseling (5–180 Days Before Closing)
Meet with a HUD-approved counselor to review reverse mortgages and other financial alternatives. In Texas, counseling must be completed between 180 days and 5 days before closing.
- 3
Sign the 12-Day Texas Constitutional Notice & Apply
Receive and sign the separate Texas Important Notice to Borrowers. Your loan cannot close before the 12th day after the lender provides it.
- 4
Close & Access Your Equity
Once both the 5-day counseling window and the 12-day notice period have passed, sign your closing documents with all owners and spouses and receive your loan proceeds.
Related Resources
Frequently Asked Questions
Quick answers to the questions Texas homebuyers ask us most. Can’t find what you’re looking for?
Talk to an ExpertFor an FHA-insured HECM, the youngest borrower must be at least 62 at closing (for a proprietary non-FHA reverse mortgage, Texas law requires at least one owner or spouse to be 62). The property must be your Texas homestead and principal residence, you must own it outright or have a low balance, and you cannot have delinquent federal debt. You must also have enough funds or a set-aside to pay ongoing property taxes, homeowners insurance, and maintenance.
Under Article XVI, Section 50(k) of the Texas Constitution, every owner and every owner's spouse must consent in writing, and both the borrower and spouse must complete counseling on reverse mortgages and other financial alternatives between 180 and 5 days before closing. In addition, the loan cannot close before the 12th day after the lender provides the Important Notice to Borrowers on a separate document, which both the lender and borrower must sign. Texas also prohibits credit card, debit card, or preprinted check access and bans per-advance transaction fees.
According to HUD Mortgagee Letter 2025-22, the current published HECM maximum claim amount for case numbers assigned in 2026 is $1,249,125 nationwide, up from $1,209,750 in 2025. Because lending limits are updated annually, you should confirm the current figure with a participating lender when you apply.
Yes. Texas Constitution Section 50(k)(4) explicitly permits reverse mortgage advances to fund the purchase of a homestead that you will occupy as your principal residence. As long as you move in on time and meet all age, counseling, and property charge requirements, you will have no required monthly principal or interest payments.
No principal or interest payment is due until an event such as the death of all borrowers or the sale or transfer of the home. Because every Texas reverse mortgage is non-recourse under Section 50(k)(3), no owner or spouse has personal liability for the debt beyond the home itself. Moreover, under Section 52 of the Texas Constitution, a homestead may not be partitioned among heirs while a surviving spouse elects to use or occupy it.
No principal or interest payment is due until all borrowers have died, the home is sold or transferred, all borrowers stop occupying the homestead for more than 12 consecutive months without the lender's written approval, the borrower defaults on taxes, insurance, or repairs, commits fraud, or fails to keep the lender's lien priority, or, on a purchase loan, fails to move in on time. Before foreclosing, a Texas lender must give at least 30 days' notice (20 days for a lien-priority default) to cure, pay off, or give a deed in lieu, and a court order is required unless the ground is the death of all borrowers or the sale or transfer of the home.
See What Your Texas Homestead Could Do for You
Compare your Texas reverse mortgage options — whether you want to eliminate a monthly mortgage payment, supplement retirement, or buy your next home.