Reverse Mortgages in Texas

Texas homeowners considering a reverse mortgage have two sets of rules to think about. A Home Equity Conversion Mortgage, or HECM, follows the federal FHA and HUD program. Texas also has detailed homestead protections and reverse mortgage provisions in the state constitution.

That does not mean a Texas reverse mortgage is automatically better or safer. It means the paperwork, timing, notices, and foreclosure process have state-specific requirements that deserve a careful reading.

Verify the people and the product

Use NMLS Consumer Access to look up both the company and the individual loan originator. Match the legal name and license numbers to the disclosures you receive. A brand name in an advertisement may not be the legal company that would make the loan.

Do this before sharing Social Security numbers, bank statements, tax returns, or other financial information. ClarityKeep is an educational site. It does not accept a loan application.

Texas homestead rules matter

Article XVI, Section 50 of the Texas Constitution contains detailed rules for liens on a homestead and specific provisions for reverse mortgages. It addresses counseling, notices, foreclosure grounds, and opportunities to correct certain defaults.

Among other requirements, the constitution says the prospective borrower and spouse must attest to receiving counseling during a stated window before closing. It also requires a separate written notice and generally prevents closing before the 12th day after that notice is provided. These are only pieces of a much longer rule. Read the official Texas Constitution and use a Texas attorney for advice about your property or rights.

Property-tax deferral needs special attention

Some older or disabled Texas homeowners may qualify for property-tax deferral or installment options. The reverse mortgage notice warns that a borrower may have to give up a previously approved deferral and pay property taxes annually.

Do not assume a tax arrangement will continue after closing. Ask the tax office, counselor, lender, and an attorney when needed. Get the answer in writing before relying on the loan to make the home more affordable.

HECM counseling

HUD-approved counseling is required before a HECM closes. Texas also places counseling requirements in its reverse mortgage provisions. The counselor should explain the loan and alternatives, but does not decide whether you qualify or declare that the loan is right for you.

Find an agency through HUD’s counselor search or call 800-569-4287. Ask whether the counselor meets the timing and documentation requirements for a Texas closing.

Before a licensed conversation

• Write down the goal and the alternatives already reviewed.
• Gather property-tax, insurance, mortgage, lien, and occupancy information.
• Confirm how ongoing property charges will be paid.
• Pause if anyone is directing the use of proceeds or discouraging private counseling.

Questions to bring to the appointment

1. Which legal company would make and service this loan?
2. Which Texas notices and waiting periods apply to this closing?
3. Would the loan change any property-tax deferral or installment arrangement?
4. What happens if insurance, taxes, or repairs become harder to afford?
5. How could the balance and remaining equity change over five or ten years?

ClarityKeep provides general education. This page does not accept an application or collect personal financial information. Choose and verify a licensed professional directly when you need advice about a loan.

Texas reverse mortgage FAQ

Does Texas have special reverse mortgage rules?

Yes. Texas homestead protections and reverse mortgage provisions appear in Article XVI, Section 50 of the Texas Constitution. A Texas-licensed professional or attorney should explain how current rules apply to a specific property and borrower.