Common questions about reverse mortgagesEducational answers about HECM reverse mortgages for Texas homeowners 62 and older. This page explains how they work. Ask us whether we originate them or refer you to a specialist. Twenty-five of the questions people search and ask AI most often, answered in plain English for Texas. |
|
All FAQs W-2 employees Self-employed Investors HELOC Reverse mortgages Down payment help
1. What is a reverse mortgage?
2. What does HECM mean?
3. How old do I have to be in Texas?
4. Do I still own my home?
5. Do I make monthly mortgage payments?
6. What happens if I do not pay my property taxes?
7. Is HUD counseling required?
8. How much money can I get?
9. How can I take the money?
10. What happens when I die?
11. My spouse is under 62. Can we still do a reverse mortgage in Texas?
12. Will my kids be stuck with the bill?
13. Does Texas have a waiting period?
14. Do I have to pay off my current mortgage?
15. Is there a credit-score minimum?
16. Can the lender take my house while I am alive?
17. Reverse mortgage vs HELOC: which is better?
18. What does a reverse mortgage cost?
19. Is there a maximum home value for a HECM?
20. What is a proprietary or jumbo reverse mortgage?
21. Can I be scammed on a reverse mortgage?
22. Can I refinance a reverse mortgage later?
23. What if I move into a nursing home?
24. Will a reverse mortgage affect my benefits?
25. Does Hill Country Home Loans do reverse mortgages?
What is a reverse mortgage?
A reverse mortgage lets a homeowner 62 or older convert part of their home equity into cash without a required monthly principal-and-interest payment. The loan is typically repaid when you sell, move out for good, or pass away. You still own the home.
What does HECM mean?
Home Equity Conversion Mortgage. It is the FHA-insured reverse mortgage, and the most common type in Texas. Private “jumbo” reverse mortgages exist for higher-value homes. HECM is the federally insured version with HUD rules and required counseling.
How old do I have to be in Texas?
For a HECM, borrowers must be at least 62. In Texas, all borrowers on the loan generally must be 62, including both spouses. That is stricter than some other states, where a younger spouse can sometimes stay on title as a non-borrowing spouse.
Do I still own my home?
Yes. A reverse mortgage is a loan, not a sale. Your name stays on the title. The lender has a lien, like any mortgage. You must live there as your primary residence and keep up taxes, insurance, and maintenance.
Do I make monthly mortgage payments?
You are not required to make monthly principal-and-interest payments on a HECM if you keep the loan in good standing. Interest and insurance still accrue on the balance. You must still pay property taxes, homeowners insurance, and HOA dues.
What happens if I do not pay my property taxes?
The loan can be called due. HUD and the servicer take taxes and insurance seriously. A financial assessment at application checks whether you can keep those bills current. An escrow set-aside is sometimes required. A reverse mortgage does not erase those obligations.
Is HUD counseling required?
Yes, for a HECM. You complete a session with a HUD-approved counselor before the loan can close. The point is to make sure you understand costs, repayment, and alternatives. Budget roughly $125 to $175, though some counselors charge less or nothing.
How much money can I get?
It depends on the youngest borrower’s age, the home’s appraised value, the FHA HECM limit, and interest rates. Older borrowers can typically access a larger share of the equity. Nobody gets 100% of the home’s value. We can run an estimate without a commitment.
How can I take the money?
Common HECM options are a line of credit, monthly tenure or term payments, a lump sum (limited on the adjustable HECM), or a mix. The line of credit can grow over time, which is different from a regular HELOC. Your counselor will walk through each one.
What happens when I die?
Heirs can keep the home by paying off the loan (often by refinancing or using other funds), or they can sell the home and keep any leftover equity. A HECM is a non-recourse loan: heirs are not supposed to owe more than the home is worth. They usually have a limited time to decide.
My spouse is under 62. Can we still do a reverse mortgage in Texas?
Usually not with both of you on a Texas HECM, because Texas generally requires every borrower to be 62. Leaving a younger spouse off the loan is a serious decision and can put them at risk if they are not protected. Get counseling before you even consider that structure.
Will my kids be stuck with the bill?
They will not get a personal bill for a shortage on a HECM. If the balance is higher than the home’s value, FHA insurance covers the gap. They can also walk away from the house. They should still talk to the servicer quickly so they do not miss deadlines.
Does Texas have a waiting period?
Yes. Texas reverse mortgages have extra consumer protections, including a waiting period before closing, similar in spirit to the 12-day home-equity cooling-off. Do not expect a three-day close. Counseling plus the wait is part of the design.
Do I have to pay off my current mortgage?
Yes. A reverse mortgage pays off the existing lien at closing. You need enough equity so the reverse loan can clear that balance and still meet costs. If the current mortgage is almost as large as the house, a reverse may not produce cash.
Is there a credit-score minimum?
HECM uses a financial assessment more than a hard FICO floor. Late mortgage payments, unpaid federal debt, and a pattern of unpaid taxes are bigger issues than a perfect score. You still need to be able to keep the home insured and taxed.
Can the lender take my house while I am alive?
Not just because you got older or the balance grew. The loan becomes due if you die, sell, live elsewhere for too long (often 12 consecutive months, including many nursing-home stays), or fail to pay taxes, insurance, or required repairs. Follow those rules and you stay.
Reverse mortgage vs HELOC: which is better?
A HELOC requires monthly payments and is for any adult homeowner who qualifies on income. A reverse mortgage is for seniors 62+ who want no required P&I payment. HELOC rates are usually lower on the drawn amount, but the payment risk is real. They solve different problems.
What does a reverse mortgage cost?
Origination, FHA mortgage insurance on a HECM, counseling, appraisal, and title. Some costs can be financed. It is not a cheap loan to set up. The trade is access to equity without a monthly P&I payment. Compare total cost to a HELOC or a downsizing sale.
Is there a maximum home value for a HECM?
FHA sets a maximum claim amount that changes each year (it moves with national loan-limit policy). If your Texas home is worth more than that cap, a HECM can still work, but it only uses value up to the cap. A proprietary jumbo reverse may use more of a high-value home.
What is a proprietary or jumbo reverse mortgage?
A private reverse loan, not FHA-insured, used mainly on higher-value homes. Age rules, fees, and proceeds differ by lender. Some states allow ages under 62 on private products. Texas is stricter. Treat marketing for “age 55 reverse” as not applying here until we check Texas law.
Can I be scammed on a reverse mortgage?
Yes, which is why HUD counseling exists. Red flags: anyone who rushes you, ties the loan to an annuity or home repair contractor, or tells you the government is giving you a grant. A reverse mortgage is a loan. Take the counseling seriously and do not sign at the kitchen table with a stranger.
Can I refinance a reverse mortgage later?
Sometimes, if rates, value, or your age make a new HECM produce enough extra proceeds to justify the cost. There is a seasoning and benefit test. It is not an annual habit. We would run the numbers before you pay for another appraisal.
What if I move into a nursing home?
If you are gone from the home for longer than the HECM occupancy rules allow, typically 12 consecutive months, the loan can be called due. A spouse who is also a borrower and still lives there is a different case. Tell the servicer early. Do not ghost them.
Will a reverse mortgage affect my benefits?
It can affect Medicaid and some need-based benefits depending on how you take the proceeds. Social Security and Medicare are generally not means-tested the same way. This is not benefits advice. Bring your counselor and, if needed, an elder-law attorney into that question.
Does Hill Country Home Loans do reverse mortgages?
Ask us. If we originate them, we will walk you through HECM versus staying in a HELOC or selling. If a specialist is the better fit, we will say so and help you get to HUD counseling either way. This page is education, not an application and not a commitment to lend.
Have Questions?
Online answers get you oriented. A quick conversation gets you numbers for your file. Call 512-784-4391, ask a professional, or apply now.
This page is for general education. It is not a commitment to lend or a guarantee of approval. Eligibility, rates, costs, and terms depend on credit, income, property, occupancy, loan program, and underwriting. Equal Housing Opportunity. Licensed by the Texas Department of Savings and Mortgage Lending.
