Texas #1 Rated Reverse Mortgage

Reverse Mortgages in Texas: A Comprehensive Guide

An estimated 3.4 million Texas homeowners age 62 and older have untapped home equity, yet rising living costs and economic uncertainty have made retirement planning more challenging than ever. Since 2020, Texas home values have increased by approximately 30–40%, making home equity one of the most significant financial resources available to many retirees.

Could a reverse mortgage help you achieve a more secure retirement? In this guide, we’ll break down everything you need to know about reverse mortgages in Texas—including key facts, 2026 lending limits, top lenders, and essential borrower protections.

How Does a Reverse Mortgage Work in Texas? (2026 Guide)

A reverse mortgage is a special type of home loan for homeowners 62 and older that allows them to convert part of their home’s equity into cash—without monthly mortgage payments.

Instead of making payments to the lender, the lender pays you based on the value of your home.  The loan is repaid only when:

• You sell the home,
• You move out permanently, or
• The last borrower passes away.

In Texas, reverse mortgages are regulated by both federal and state laws, ensuring borrower protections and strict guidelines on fees and eligibility.

Types of Reverse Mortgages Available in Texas

There are 3 main types of reverse mortgages:

1. Home Equity Conversion Mortgage (HECM) – The most common type, insured by the FHA and backed by HUD.  No restrictions on how you use the funds.
2. Jumbo Reverse Mortgage – Designed for homes above FHA lending limits ($1,249,125 in 2026).  These are not FHA-insured but allow larger loan amounts.
3. HECM for Purchase (Reverse Mortgage for Buying a Home) – Allows retirees to buy a new home using a reverse mortgage while eliminating monthly mortgage payments.

Who Qualifies for a Reverse Mortgage in Texas?

To be eligible for a reverse mortgage in Texas, you must meet these requirements:

• Age: You must be 62 or older (both spouses if married).
• Homeownership: The home must be your primary residence (vacation homes and rentals don’t qualify).
• Equity: You must have substantial home equity—typically at least 50% or more.
• Property Type: The home must be a single-family residence, HUD-approved condo, townhouse, or a multi-unit property (up to four units) where you live in one unit.
• Financial Requirements: You must continue to maintain property taxes and homeowners insurance.
• Mandatory HUD Counseling: Texas law requires borrowers to complete HUD-approved reverse mortgage counseling before applying.

Benefits of a Reverse Mortgage in Texas

A reverse mortgage can offer several financial advantages for Texas homeowners:

• Tax-Free Funds – Since the money comes from home equity, it is not taxable income.
• Stay in Your Home – You keep ownership of your home as long as you meet loan requirements.
• No Monthly Mortgage Payments – Unlike traditional loans, you don’t make monthly payments unless you choose to voluntarily.
• Flexible Payout Options – Choose a lump sum, line of credit, or monthly payments based on your needs.
• Non-Recourse Loan Protection – You (or your heirs) never owe more than your home’s value, even if the balance exceeds the home’s worth when sold.

Is a Reverse Mortgage a Good Idea for Texas Homeowners?

A reverse mortgage can be a great financial tool, but it’s not for everyone.  Here are some common situations where it makes sense:

• You need extra income for retirement but don’t want to sell your home.
• You have substantial home equity and want to tap into it without monthly payments.
• You plan to stay in your home long-term and can cover taxes & insurance.
• You want a flexible line of credit that grows over time.

How this data was derived: Reverse mortgage counts reflect FHA-insured HECM loans endorsed over a rolling 12-month period (Dec 2024–Nov 2025) using HUD HECM Snapshot data. Active lenders represent unique FHA sponsor numbers with at least one endorsed loan during this period. Estimated homeowners age 62+ are based on U.S. Census ACS 5-year owner-occupied households age 65+ as a conservative proxy. Home values are sourced from Zillow’s Home Value Index (latest available).

Top 20 Reverse Mortgage Lenders in Texas

Texas Reverse Mortgage Borrower Protections & Laws

Texas has some of the strongest borrower protections in the U.S.:

• Constitutional Protections – Reverse mortgages are explicitly regulated under Texas law to protect homeowners.
• Mandatory Counseling – All borrowers must complete a HUD-approved counseling session before applying.
• Non-Recourse Protection – You’ll never owe more than your home is worth at the time of sale.
• Homestead Exemption – Texas protects reverse mortgage borrowers from creditors outside the mortgage agreement.
• Spousal Protections – Unlike other states, Texas requires both spouses to be at least 62 to qualify.

Texas has additional reverse mortgage regulations: Unlike other states, Texas added reverse mortgage laws to its state constitution, providing extra borrower protections.

How to Apply for a Reverse Mortgage in Texas

1. Free Consultation – Speak with a licensed reverse mortgage expert to explore your options.
2. HUD Counseling – Complete the required HUD-approved reverse mortgage counseling.
3. Application & Documentation – Submit your loan application and property documents.
4. Home Appraisal – A licensed appraiser will determine your home’s value.
5. Loan Approval & Closing – Once approved, you’ll sign the final documents.
6. Receive Your Funds – After the mandatory 3-day waiting period, your funds will be disbursed

Texas state does not mandate in-person counseling:  Visit our counseling page for a list of phone-based counseling agencies and conduct your required counseling from the comfort of your home.

Areas of Interest in Texas

Arlington Austin Conroe Corpus Christi Cypress Dallas El Paso Fort Worth Georgetown Houston Irving Mansfield North Richland Hills Plano Richmond San Antonio

Ready to Unlock Your Home’s Equity?

As Texas’s #1 Rated Reverse Mortgage Lender, All Reverse Mortgage, Inc. (ARLO™) is here to provide trusted guidance, real-time rates, and expert support to help you make informed decisions.

✔  No obligations. Just real-time rates and expert advice.
✔  Instant quote. No personal info required.
✔  Licensed experts. Get clear, honest answers.

As a fully licensed lender by the Texas Department of Savings & Mortgage Lending (License #84280), we’re committed to helping you secure the retirement you deserve.

Get Your Reverse Mortgage Quote from Texas’s #1-Rated Reverse Mortgage Lender* or call (800) 565-1722 to speak with a licensed expert.

Additional Resources:

• Reversemortgage.org NRMLA Members in Texas
• HUD.GOV Approved Lenders Search