Who a reverse mortgage is for
Texans 62 and older who own a meaningful share of their home and want to stay in it — or buy a better-suited one — while turning some of that equity into money they can use. It is a specialized tool with real benefits and real trade-offs, and it deserves an unhurried conversation.
What stays the same, and what changes
What changes: you do not make monthly principal and interest payments on the reverse mortgage. Instead, the loan balance grows over time as interest and fees are added. You can receive funds as a line of credit, monthly amounts, a lump sum, or a combination, depending on the program.
What stays the same: you keep the title. You live in the home as your primary residence. And you keep paying property taxes, homeowners insurance, any HOA dues and maintenance. In Texas, where property tax is the largest ongoing cost of owning a home for many people, that last point is not a footnote — it is the plan. Ask your county appraisal district about the over-65 homestead exemption if you have not already.
When the loan comes due
A reverse mortgage is generally repaid when the last borrower sells, moves out permanently or passes away — or if the obligations above are not kept up. Heirs can then sell the home, pay off the loan and keep it, or return it. Under the FHA-insured HECM program, they are not personally responsible for more than the home is worth.
HECM for Purchase
A reverse mortgage is not only for staying put. With a HECM for Purchase, a buyer 62 or older can pair a down payment with a reverse mortgage to buy a new primary residence — a single-story home, a place near the grandchildren — without taking on a monthly mortgage payment for the new home.
Counseling, and bringing family in
For a HECM you must meet with an independent, HUD-approved housing counselor before you apply. I also strongly encourage clients to invite an adult child, a trusted friend or a financial adviser into our conversations. A reverse mortgage affects the whole family’s plans, and good decisions are made in the open.
Is a reverse mortgage the right tool?
Sometimes a home equity loan or HELOC is simpler. Sometimes downsizing outright is better. Sometimes a reverse mortgage genuinely changes a retirement for the better. We compare them honestly, and “not right now” is a perfectly good outcome.
What I will not do on this page
Quote loan amounts, rates or costs. They depend on age, home value, the program and the day. This page is general education and not an offer. It has not been reviewed or approved by HUD, FHA or any government agency. Applications, pricing and disclosures are handled by All Western Mortgage.