Reverse Mortgage · Age 62+
A reverse mortgage lets homeowners 62 and older convert part of their home equity into funds — while keeping the title to their home. It's a significant financial decision with real obligations, so here's a clear, honest explanation of how it works.
The basics
A reverse mortgage is a loan for homeowners aged 62 and older that converts part of their home equity into funds — as a lump sum, monthly payments, a line of credit, or a combination. The most common type is the Home Equity Conversion Mortgage (HECM), which is insured by the FHA.
Unlike a traditional mortgage, you don't make monthly principal-and-interest payments on a reverse mortgage. Instead, the loan balance grows over time as interest and fees accrue, and it's typically repaid when the last borrower sells the home, moves out permanently, or passes away. You keep the title to your home throughout.
It's important to understand the responsibilities that come with it. You must continue to pay your property taxes and homeowners insurance, and keep the home maintained — failing to do so can put the loan in default. Because it's a major decision, HUD requires every HECM borrower to complete independent counseling first, so you fully understand the terms before proceeding.
Worth exploring if you
✓ Are 62 or older and own your Texas home
✓ Have significant equity built up
✓ Want to supplement retirement income
✓ Plan to stay in your home for the long term
✓ Can maintain taxes, insurance, and upkeep
Requirements
Reverse mortgages have their own eligibility rules built around age, equity, and the home. Here's the framework — specifics depend on your situation and current program terms.
Understand it fully
A reverse mortgage can be a valuable retirement tool for the right person — but only with eyes fully open. These are the facts we make sure every client understands before moving forward.
You remain the owner of your home. The lender does not take ownership; the reverse mortgage is a lien against the property, like any mortgage.
Because you're not making monthly principal-and-interest payments, the loan balance increases over time as interest and fees accrue — reducing the equity that remains.
You must keep paying property taxes and homeowners insurance and maintain the home. Falling behind on these can trigger default, so this isn't a 'no strings' arrangement.
The loan generally becomes due when the last borrower sells, permanently moves out, or passes away. The home is typically sold to repay it, and remaining equity goes to you or your heirs.
HECMs are non-recourse: neither you nor your heirs owe more than the home's value at repayment, even if the balance has grown beyond it. FHA insurance covers the difference.
Every HECM borrower must complete a session with an independent HUD-approved counselor before proceeding. It's a safeguard to ensure the decision is right for you.
This page is reviewed by Jonathan Sarver, a licensed Texas loan officer. Have a question about your specific situation in Austin or the Hill Country? Reach out directly — a real person, licensed in Texas, will answer.
Answers
The youngest borrower on the home's title must be at least 62 years old, the home must be your primary residence and meet FHA standards, and you need substantial equity. Every borrower must also complete independent HUD-approved counseling before proceeding.
Yes. You keep the title to your home. A reverse mortgage is a lien against the property, not a transfer of ownership — the lender does not own your home. You remain responsible for property taxes, insurance, and maintenance.
You don't make monthly principal-and-interest payments. Instead, the loan balance grows over time and is typically repaid when the last borrower sells the home, moves out permanently, or passes away. You must, however, keep up with property taxes, insurance, and upkeep.
The loan generally becomes due when the last borrowing homeowner sells the home, permanently moves out, or passes away. The home is usually sold to repay the balance, and any remaining equity belongs to you or your heirs. HECMs are non-recourse, so you never owe more than the home's value at repayment.
It depends entirely on your situation — it can be a valuable retirement tool for some homeowners and the wrong choice for others. Because the balance grows and there are real obligations, HUD requires independent counseling first. We'll walk you through the honest trade-offs so you can decide with full information.
No pressure, just clarity
Get a straightforward, no-pressure explanation of whether a reverse mortgage fits your retirement — from a licensed Texas loan officer.
Talk through a reverse mortgageThis is not a commitment to lend. All loans subject to credit approval, income and asset verification, and property appraisal. Rates and terms vary and are not guaranteed.