Reverse Mortgages in Texas

Reverse mortgages exist in Texas because the state constitution allows them. Texas had banned home-equity lending of any form for over 150 years; the 1997 home-equity amendment opened the door, and Texas Constitution Article XVI §50(a)(7) authorizes reverse mortgages. Voters revised the reverse-mortgage terms in November 1999 (S.J.R. 12, 76th Legislature), and later amendments in 2005 and 2013 modernized the line-of-credit and disbursement rules. The 2026 federal HECM lending limit of $1,249,125 applies in Texas (HUD Mortgagee Letter 2025-22).

What reverse mortgage rules are specific to Texas?

The Texas Constitutional framework imposes terms that overlay the federal HECM contract. A reverse mortgage cannot close before the 12th day after the lender gives the borrower a written notice whose text the constitution prescribes (Tex. Const. Art. XVI §50(k)(9)). The loan must be non-recourse as a matter of state constitutional law (§50(k)(3)), on top of the federal statutory non-recourse at 12 USC §1715z-20. A reverse-mortgage lien may be foreclosed only by court order, unless the loan came due because all borrowers died or the home was sold or transferred (§50(k)(11)).

For jumbo programs, Texas is one of two states (with North Carolina) where Finance of America sets the HomeSafe age floor at 62; for certain HomeSafe products the floor is 55 elsewhere, except Massachusetts, New York and Washington, where it is 60 (Finance of America, HomeSafe program page).

Counseling uses the federal HUD-approved process; Texas adds no separate counselor licensing requirement. Recording fees are county-administered and run modest, generally $50–$150 for the security instrument.

How much can you borrow with a reverse mortgage in Texas?

Texas borrowers face the same federal ceiling, $1,249,125 in 2026 (HUD ML 2025-22), that applies in every state; what varies is the documentary regime and the 12-day notice that comes in on top of it. A 72-year-old Texas borrower with a paid-off $450,000 home sees a HUD principal limit factor of roughly 35.2–41.6% across a 6.0–7.5% expected-rate planning range, about $158,000–$187,000 before closing costs. Treat that as a rough planning number, not a quote.

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The documentary regime and the rest of the Texas picture are summed up in the Texas suitability score, which sets the state against every other jurisdiction.

Do you need counseling for a reverse mortgage in Texas?

Every Texas HECM borrower completes a session with a counselor on HUD's HECM Roster before the lender may process the application (HUD Handbook 4000.1), and FHA's list of HECM counseling agencies shows nine based in Texas as of October 7, 2026. Three are in Dallas, two in Houston and two in Stafford, and one is in each of Arlington and Fort Worth; each sets its own fee. The HUD HECM Counselor Roster or 1-800-569-4287 finds them, as well as agencies that counsel by phone. Under the Texas Constitution, the borrower and the borrower's spouse attest in writing that they received counseling, completed no earlier than the 180th day and no later than the 5th day before closing (Tex. Const. art. XVI, §50(k)(8)).

What about jumbo in Texas?

A Texas borrower with a home appraised above the $1,249,125 limit cannot reach the equity above the cap through a HECM. Proprietary jumbo programs (Finance of America's HomeSafe, Longbridge Platinum, and Mutual of Omaha's SecureEquity) lend up to $4 million (each lender's product page). The Texas-specific wrinkle is the age-62 floor, which the Texas Constitution sets for all three (Tex. Const. art. XVI, §50(k)(2)). See HECM vs. jumbo and the HomeSafe card.

For the federal lending-limit reference, see HECM lending limits. For the current HECM rate environment, see current HECM rates. For the counseling step every Texas borrower completes, see the counseling guide. For the lender-by-lender parameter cards across all live programs, see the programs page. For the structural primer on what a reverse mortgage is and how it works, see what a reverse mortgage is.

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