Texas Reverse Mortgage: Your Homeowner’s Guide to Retirement Options



For Texas homeowners exploring retirement funding, a Texas reverse mortgage offers an option to convert home equity into cash without monthly payments. This solution from Reverse Mortgage Services of Texas helps seniors access funds while staying in their homes, making it a valuable financial tool for retirement planning.

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Your Home May Hold the Key to a More Comfortable Retirement: A Texas Reverse Mortgage Guide

Saving for retirement feels tough for lots of Texans, right? Many folks worry about money running out. You aren’t alone if your savings look low. The Employee Benefit Research Institute says about 40% of Americans over 55 have zero saved up for later. That’s kinda scary.

Home values in Texas keep going up, though. If you own a house in Dallas, Houston, or Austin—or even a smaller town—you might have built up lots of equity just by living there. Your home could help fix some of those retirement worries.

Are you 62 or older? Do you have a paid-down house? If so, a reverse mortgage might make life easier as you get older. This type of loan lets you use your home’s value while staying put—no need to move out or sell your place. Plus, you don’t send monthly payments to the bank.

Here’s how it usually works:

  • You need to be at least 62.
  • The house has to be mostly paid off (like half or more).
  • You keep living in the home.
  • You still pay taxes and insurance and fix stuff when it breaks.

Robb Hamilton helps Texas folks with this all the time (NMLS #358150, Broker License #2407110). He knows the rules for reverse mortgages here. If you want to ask questions, he can give simple answers and talk through what happens next.


Understanding Reverse Mortgages: An Overview

A reverse mortgage—official name is Home Equity Conversion Mortgage (HECM)—works a bit different from the usual loans you know about. With this loan, people who are 62 or older can turn part of their home’s value into cash.

Here’s what makes it different:

  • Instead of paying the bank each month, the bank sends YOU money.
  • You pick how you get paid—lump sum, monthly checks, or even a line of credit.
  • The money doesn’t count as income for most taxes.
  • No payments are due until you sell your home, move away for good, or pass away.

The money can help with lots of things:

  • Cover bills every month.
  • Pay for medicine or health stuff.
  • Fix up your house.
  • Travel or see family more often.

But here are some rules everyone has to follow:

  • You gotta stay current on property taxes and home insurance.
  • Keep the house in good shape.
  • Only use it on your main place where you actually live.

People sometimes worry they’ll lose their house, but that only happens if taxes or insurance go unpaid, or if no one lives there anymore. If you want more details straight from an official site, check out HUD Reverse Mortgage Program.


Qualifying for a Reverse Mortgage in Texas: Key Requirements

Thinking about a reverse mortgage in Texas? Here’s what you need to know. You have to meet a few rules before you can get one. The big one: you gotta be 62 or older. That’s just how these loans work. Your house should be your main place where you live most of the year.

Here’s what banks check for:

  • Age: All borrowers on the loan must be at least 62.
  • Homeownership: You own your house or have a lot of equity in it (about 50%).
  • Primary Residence: This has to be the home you actually live in, not a rental or vacation house.
  • Condition: The house must meet HUD’s safety and health standards. No falling roofs or broken stuff all over.
  • Financial Assessment: Lenders look at your money situation. They want to see if you can keep up with taxes, insurance, utility bills, and repairs.
  • HUD Counseling: Before you sign up, you meet with a HUD-approved counselor. They walk you through how these loans work, what else is out there, and what could go wrong.
  • Keep Up with Taxes and Insurance: If you don’t pay property taxes or insurance, that’s trouble.

Lenders want to make sure you can handle the costs that come with keeping your home. That helps avoid problems down the road like defaulting on the loan.

You can find a local HUD-approved counselor by visiting HUD’s official counseling website.


Types of Reverse Mortgages Available in Texas

Texas has more than one kind of reverse mortgage. Picking the right one depends on your house and money needs.

Main types are:

  • Home Equity Conversion Mortgage (HECM)
  • Proprietary (Jumbo) Reverse Mortgages
  • HECM for Purchase
  • Single-Purpose Reverse Mortgages

Home Equity Conversion Mortgage (HECM)
This is the most used kind of reverse mortgage in Texas. It’s backed by the FHA (Federal Housing Administration). FHA insurance gives some protections:

  • If the home drops in value, you or your family won’t owe more than it’s worth when paying back.
  • There’s a lending limit ($1,089,300 for 2025).
  • Multiple ways to get your money: monthly payments, line of credit, lump sum, or a mix.

Proprietary (Jumbo) Reverse Mortgages
These are private loans from banks or lenders. They’re not FHA-insured.

  • For people with high-value homes who need more money than HECM allows.
  • Lending limits are higher but rules might be different for each lender.

HECM for Purchase
This one lets folks buy a new main home using a reverse mortgage. You still have to be 62 or older. Good choice if someone wants to move but doesn’t want monthly payments anymore.

Single-Purpose Reverse Mortgages
State and local agencies offer these sometimes. Only use them for certain things—like paying taxes or fixing up the house.

For more details about HECM loans and rules from FHA, check out this FHA Reverse Mortgage Program page.


The Reverse Mortgage Process in Texas: A Step-by-Step Guide

Reverse mortgages might sound tricky but they’re actually step-by-step stuff. Here’s how it goes if you live in Texas.

  1. HUD Counseling
    Before applying, talk to a HUD counselor about your options and any risks with these loans.
  2. Application and Docs
    After counseling, work with someone who does reverse mortgages to fill out an application form.

You’ll usually need:

  • Your photo ID
  • Social Security number/card
  • Proof that you own your home (deed/mortgage statement)
  • Latest tax bill
  • Homeowner’s insurance info
  • Proof of income
  • HOA dues info if that applies
  1. Home Appraisal
    A professional checks what your home is worth now. The amount of money you get depends on this value—and the home has to meet certain standards set by FHA.
  2. Underwriting/Approval
    The lender reviews everything—your finances and house—to check that everything matches their requirements.
  3. Closing Time
    If approved, sign final loan papers at closing day. You pick how to get paid: lump sum, monthly checks, line of credit—or even all three together if allowed.
  4. Right of Rescission Period
    Wait three days after closing—by law—to cancel without any penalty if you change your mind.
  5. Getting Your Money
    Once those three days pass and nothing changes, they send out your funds however you picked above.

Summary Checklist: Documents Needed for Application

Make sure these are ready so things go fast:

  • Government-issued ID
  • Social Security card or number
  • Proof that you own the home (deed/title/mortgage paper)
  • Most recent property tax bill
  • Homeowners insurance policy declarations page
  • Proof of income (Social Security benefit letter/pension papers)
  • HOA dues bill if needed

Reverse Mortgage Services of Texas can help walk Texans through all these steps . Robb Hamilton and his team explain every piece so seniors feel good about their choices . Call them up if you wanna learn about getting cash outta your house without selling it .

Texas Reverse Mortgage Borrower Rights and Protections

Thinking about a reverse mortgage in Texas? You’ve got rights that help keep things fair and clear. These rules help folks over 62 feel safe when using this kind of loan.

HUD-Approved Counseling

  • You gotta do counseling with a HUD counselor before you get a reverse mortgage.
  • The counselor tells you the risks, how the loan works, and all your choices.
  • You hear real facts from someone not selling you anything.
  • You pick what’s best for you after learning about the good and the bad.

The Non-Recourse Feature

  • If you get a Home Equity Conversion Mortgage (HECM), there’s something called “non-recourse.”
  • If your house drops in value, you or your family don’t pay more than what it’s worth when the loan ends.
  • The bank can’t chase your other stuff if the loan goes over your house value.

Right to Repayment Without Penalties

  • You can pay off your reverse mortgage early without paying fees for doing it.
  • Some folks like paying it off fast. Some just want to pay bit by bit.
  • You pick how and when to repay, no big surprise charges.

Texas-Specific Laws and Constitutional Protections

  • Texas rules help block lenders from chasing more money than your home is worth.
  • This lines up with federal “non-recourse” stuff.
  • Texas makes banks share every fee, duty, and rule before you sign anything.
  • You get all the papers about costs and what you need to do.

Check out the Texas Department of Housing and Community Affairs for extra info on Texas reverse mortgages.


Pros and Cons of Reverse Mortgages in Texas: Is it Right for You?

Reverse mortgages help lots of Texas seniors, but some stuff might bug ya. Here are ups and downs so you can think about what fits.

Benefits of Reverse Mortgages

  • Tax-Free Income: The money from a reverse mortgage usually isn’t taxed.  (Always ask a tax expert—rules change fast.)
  • Flexible Payout Options: Pick lump sum, line of credit, monthly payments, or mix ‘em up.
  • No Monthly Mortgage Payments: Skip those old bills each month; save cash for other stuff.
  • Stay in Your Home: Keep living where you’re comfy as long as taxes, insurance, and repairs get done.

Potential Drawbacks

  • Growing Loan Balance: Loan amount goes up since interest stacks without monthly payments. Home equity shrinks.
  • Reduced Home Equity for Heirs: Less left over for your kids or family later on.
  • Impact on Needs-Based Benefits: Medicaid or SSI could be tricky if you don’t handle your funds right. Ask an expert.
  • Risk of Foreclosure: Miss paying property taxes or insurance? Not fixing your place? Bank could take back your house.

Think through all these points before picking what works best.


Common Reverse Mortgage FAQs

Do I Keep the Title to My Home with a Reverse Mortgage?

Yep. Your name stays on the title. You gotta live there full-time and fix things if needed.

Will a Reverse Mortgage Affect My Social Security or Medicare Benefits?

Nope—getting reverse mortgage cash won’t cut into Social Security or Medicare checks. These programs don’t count that money as income.

For straight info go look at Social Security Administration and Medicare.gov.

What Happens to My Home When I Pass Away?

After everyone on the loan moves out or dies, the loan comes due. Your family can pay off the balance to keep the home or sell it. Thanks to “non-recourse,” they never owe more than what the house sells for.

What is a "Non-Borrower" and a "Co-Borrower"?

A borrower signs for the reverse mortgage. Co-borrowers also sign—they share rights on the loan. A non-borrower spouse lives there but doesn’t sign; some rules protect them anyway.

What If I Cannot Pay My Property Charges, Such as Taxes and Insurance?

You must pay taxes, insurance, and keep up repairs or else risk defaulting on the loan. Not paying these might lead to foreclosure—so budget well to protect your place.


Want advice just for you? Reach Robb Hamilton at Reverse Mortgage Services of Texas.
Link to Contact Page 


Texas Reverse Mortgage Case Studies: Real-Life Examples

See how Reverse Mortgage Services of Texas helped seniors in Texas use home equity. Some folks really need a hand with bills and living costs. Let’s check out three stories that show real problems Texas homeowners face.

Case Study 1: Covering Unexpected Medical Expenses

  • Mrs. J taught kids in Dallas for many years. She retired and got hit with big medical bills after surgery. 
  • Her retirement money couldn’t cover everything. Savings were almost gone.
  • Mrs. J worried about losing her house and not paying for her care.
  • Robb Hamilton talked her through reverse mortgage choices.
  • She used her home’s value for cash, paid the hospital, and stopped worrying about mortgage payments.
  • Now she stays in her home. Her health costs don’t scare her anymore.

Case Study 2: Aging in Place Through Home Improvements

  • Mr. and Mrs. S liked their Houston home and didn’t want to move out as they got older.
  • They needed things like ramps and a walk-in shower for safety but hated using all their savings.
  • The couple spoke with Robb about options.
  • The reverse mortgage helped them turn some house value into money for upgrades.
  • Their monthly bills got smaller, too.
  • They still own the home where they raised their family.

Case Study 3: Supplementing Retirement Income During Financial Hardship

  • Ms. T from Austin lost her partner and now lives on Social Security alone.
  • Everyday bills ate up her emergency funds quickly.
  • Robb set up a reverse mortgage line of credit so she could get money when she needs it, not just all at once.
  • Ms. T keeps her house and spends only what she needs.
  • She saved what’s left of her savings for other stuff later.

“Robb made sure I understood each step, and the reverse mortgage truly removed my financial worries.” 
—A grateful client from North Texas

Robb Hamilton: Your Trusted Texas Reverse Mortgage Specialist

Robb helps seniors across Texas figure out smart ways to use their homes for money when life gets tough or retirement isn’t enough.

Experience & Credentials

  • Over 20 years working in retirement planning and lending
  • NMLS #358150 | Broker License #2407110
  • Certified Reverse Mortgage Professional (CRMP)
  • Member of National Reverse Mortgage Lenders Association (NRMLA)
  • Serves North Texas, Dallas, Austin, Houston, plus nearby towns

Commitment to Local Seniors

Robb builds trust by being clear, showing care, and walking clients through decisions about using their home’s value. 
He specializes in helping seniors stay put instead of moving, add to retirement income, or pick the right equity choice.

Recognitions

  • “Top Reverse Mortgage Specialist—Texas Region,” NRMLA (2023)
  • Google Business Profile shows 5-star ratings from happy clients
  • Often speaks at local financial events for seniors

Read What Our Clients Say: Texas Reverse Mortgage Reviews

People around Texas say nice things about Reverse Mortgage Services of Texas and Robb Hamilton.

Here are some honest words from real clients:

“Robb guided me through the reverse mortgage process with patience and honesty. Now I can afford my medications and stay in the home I love!” 
—Ms. V., Dallas, TX

“We were able to renovate our house for accessibility and relieve financial stress. Robb’s local expertise made all the difference.” 
—Mr. & Mrs. B., Houston, TX

“Thanks to Robb, I have a new source of retirement income without worrying about monthly payments.” 
—Mrs. L., Austin, TX

Read more reviews on our Google Business Profile.

If you’ve worked with us:
Leave a Review on Google – we want your feedback!



Reverse Mortgages and Estate Planning in Texas: Considerations for Your Heirs

A reverse mortgage gives Texas seniors some breathing room with their money. Your house still stays part of your stuff when you get one. When you or your partner pass away or move out, the loan needs to get paid off. This can change what you leave to your family.

What Can Heirs Do?

  • Sell the House: Usually, folks just sell the home. They pay back the loan, and any cash left goes to the estate.
  • Keep the Home: If heirs want to keep it, they need to pay off the loan. They might get a regular mortgage or use savings.
  • Hand Back to Lender: Sometimes heirs don’t want the trouble. They can give the house back instead of selling it.

With a Home Equity Conversion Mortgage (HECM), nobody pays more than what the house is worth, even if the loan is bigger.

How To Prevent Family Arguments

Reverse mortgages confuse families sometimes. Expectations can get mixed up fast.

  • Talk Openly: Tell your family what’s happening with your plans and how this stuff works.
  • Update Documents: Make sure your will and trust say what you mean.
  • Get Legal Help: Find a Texas attorney who knows about reverse mortgages and estates. Check out the Texas State Bar Association’s “Find a Lawyer” tool.

Estate Stuff and Taxes

  • The home—and its loan—usually go through probate unless you put things in a trust.
  • Most folks won’t pay federal estate tax, but a reverse mortgage drops how much is left in your estate.
  • Texas law has some rules that protect homes, but heirs still have to pay off any reverse mortgage before keeping the place.

Expert Tip: Every family is different. Talk to a good Texas estate planning lawyer if you’re changing anything big with a reverse mortgage.

Reverse Mortgages vs. HELOCs in Texas: Which is Right for You?

Texas folks think about both reverse mortgages and HELOCs when they need extra money from their home’s value. Here’s how they stack up:

Feature

Reverse Mortgage

HELOC

Eligibility

62+, lots of equity

Good credit, income, equity

Monthly Payments

Not needed

Yes—interest or principal + interest

Repayment

After moving out, selling, or death

Monthly while you borrow

Credit Requirements

Easier

Harder—need better score

Loan Purpose

Retirement cash, health care

Repairs, debts, whatever

Interest Rates

Fixed or adjustable; usually higher

Usually lower at first

Long-Term Effects

Less inheritance; interest grows

Missed payments = risk of foreclosure

Pros of Reverse Mortgages:

  • You don’t make payments while living there (if rules are met).
  • Extra cash flow for retirement.
  • Heirs won’t owe more than house value.

Cons:

  • Interest adds up over time.
  • Heirs may get less.

Pros of HELOCs:

  • Use money as needed.
  • Cheaper at first.

Cons:

  • Payments required every month.
  • Miss payments? Foreclosure possible.

Tip: Still unsure? Compare rates at the CFPB guide or ask a trusted advisor.

Navigating Reverse Mortgages with a Financial Advisor in Texas

Choosing a reverse mortgage? It’s smart to talk with someone who knows how all this fits into retirement plans.

Why See an Advisor?

  • Advisors check if a reverse mortgage makes sense for your life and goals.
  • They help look at how it fits alongside Social Security, Medicare, and savings.
  • Tax rules can be tricky. Get someone who can explain what happens if you pick this kind of loan.

How To Find A Good Advisor

Look for these badges:

  • CFP® means training and honesty standards.
  • Fiduciary means they must act for you—not themselves.

Check LetsMakeAPlan.org to find planners around Texas.

Pro Tip: Ask them straight out about helping seniors with reverse mortgages before deciding.

Reverse Mortgages for Texas Veterans: Options and Benefits

Texas veterans have special choices when thinking about reverse mortgages. Some questions pop up here:

Is There A Special VA Reverse Mortgage?

  • HECMs are still the main product. No special VA-only reverse mortgage yet exists.
  • Veterans might qualify for other loans through the VA or Texas Veterans Land Board (VLB).

Using VA Benefits Together With Reverse Mortgages

Veterans sometimes mix these options:

  • You can use pension checks along with money from a reverse mortgage for more flexibility.
  • Instead of a reverse mortgage, some vets like VA cash-out refinancing or VLB programs are better.

Visit Texas Veterans Commission or Federal VA Home Loan page for up-to-date info on help for veterans with housing needs.


The Impact of Texas Property Taxes on Reverse Mortgages

Thinking about property taxes in Texas matters if you’re going for a reverse mortgage. Ignore this stuff and you could lose your place!

What You Have To Do

Even after getting a reverse mortgage:

  • Keep paying yearly property taxes and insurance yourself
  • Fix things around the house so it stays safe

Missed taxes mean default—and maybe losing your house!

Seniors aged 65+, disabled homeowners, and veterans might get property tax breaks that make bills smaller each year:

Check Texas Comptroller’s Property Tax page for help forms and more details
Ask your local appraisal district too—they might know about extra programs

Important: Stay on top of those tax bills so nothing slips through the cracks with your home or loan agreement.

Reverse Mortgages in Specific Texas Cities: What You Need to Know

Reverse mortgages aren’t exactly alike everywhere in Texas—stuff like home prices and city resources matter plenty.

Dallas

Houston

Austin

  • Homes shoot up in value fast lately; bigger loans possible
  • Austin Senior Programs share tips on repairs & taxes

Fort Worth

San Antonio

Call local lenders or advisors who understand city laws before making decisions that affect your home’s future!


What is the counseling requirement for a Texas reverse mortgage?
HUD requires mandatory counseling from a HUD-approved housing counselor. Counseling helps you understand loan details, benefits, and risks. The session reviews repayment options, ongoing expenses, and potential impacts on benefits.

How do Texas state laws protect reverse mortgage borrowers?
Texas Constitution Article XVI Section 50 protects senior homeowners. Non-recourse means you never owe more than home value. State rules require full disclosure of fees and rights before closing.

Can I use a reverse mortgage to pay property taxes or insurance in Texas?
You must keep up with property taxes and homeowners insurance. Failing to pay these charges can trigger foreclosure. A reverse mortgage can help cover these costs if you budget wisely.

Are there different types of Texas reverse mortgages available?
Texas offers several options including jumbo reverse mortgages, HECM for purchase, and single-purpose loans. Proprietary programs serve those with higher-value homes.

Does a non-borrowing spouse have protections under Texas law?
Non-borrowing spouses may have certain rights to stay in the home. Federal and state laws define protections for surviving spouses after the borrower passes away or leaves.

How is my financial capacity evaluated during loan application steps?
Lenders review your income, ongoing expenses, federal debt, and ability to maintain the property. A financial assessment helps avoid default due to missed payments or upkeep.

What are the main costs and fees for a Texas reverse mortgage?
Expect upfront costs like origination fees, real estate closing costs, appraisal, and mortgage insurance premium. Ongoing costs include servicing fees and homeowners insurance.

How does loan repayment work for heirs or after moving out?
Repayment occurs when you move out, sell your home, or pass away. Heirs repay by selling the home or refinancing. The estate will never owe more than appraised value at sale.


Key Points: Texas Reverse Mortgage Essentials

  • Government-backed loans follow strict HUD regulations for borrower safety.
  • Shop around among certified loan specialists to compare interest rates.
  • Be alert for predatory lending; research lenders and never rush decisions.
  • Use the line of credit option for flexible access to funds as needed.
  • Choose a lump sum payment option or monthly payout option based on needs.
  • Understand ongoing costs: taxes, insurance, maintenance obligations.
  • Responsible planning supports long-term financial stability for retirees.
  • Always consult an elder law attorney or estate planning lawyer before signing.
  • The Texas Homeowners Assistance Program supports senior homeowner assistance.
  • Use a Texas reverse mortgage calculator to estimate disbursement of funds.
  • Reverse mortgage alternatives include home equity loan, refinancing, downsizing.
  • Report scams to the Federal Trade Commission or Consumer Financial Protection Bureau.
  • Counseling cost may vary but is required; ask about possible non-profit loan programs.
  • Qualify only if your primary residence meets Texas reverse mortgage requirements.
  • Non-recourse clause ensures no forced sale if balance exceeds home value at sale.
  • Surviving spouse rights in Texas provide extra security for senior Texans protections.
  • Consider annuity or long-term care insurance as part of elder financial planning.
  • Certified mail documents any request to cancel within the rescission period after closing.

For advice tailored to your needs, discuss all concerns with certified professionals in Texas.