Reverse Mortgage (HECM) Guide for Texas Homeowners 62+
Texas has approximately 1.4 million homeowner households led by someone 62 or older — one of the largest totals of any state. With a median home value of $310,000, Texas homeowners have seen significant equity gains in recent years, particularly in Dallas-Fort Worth, Houston, Austin, and San Antonio. A HECM can help Texas seniors access that equity without monthly mortgage payments.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
$1,249,125
Texas's median home values fall well below the 2026 FHA HECM limit of $1,249,125. Most Texas homeowners can access the full available equity through a HECM. Luxury Austin and Dallas properties occasionally approach the cap but rarely exceed it.
Source: HUD Mortgagee Letter 2025-21
Texas Reverse Mortgage Protections
Texas has unique constitutional protections for reverse mortgages. Under Texas Constitution Article XVI, Section 50(k), a HECM in Texas must be made by an FHA-approved lender and requires specific disclosures, a 12-day waiting period between application and closing, and a 3-day right to cancel after closing. Texas also prohibits "equity lending" that leaves insufficient equity to the homeowner — a protection that applies to reverse mortgage transactions.
Source: Texas Constitution Art. XVI § 50(k); Texas Finance Code § 159
HUD-Approved Counseling in Texas
Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in Texas →
Texas HECM FAQ
Are HECMs available in Texas?
Yes, but Texas has unique state-level rules. HECMs in Texas must be made by FHA-approved lenders licensed in Texas, and the state constitution imposes additional requirements including a 12-day waiting period before closing and a 3-day right of rescission after closing.
Does Texas require additional steps for a reverse mortgage?
Yes. Beyond the federal HUD counseling requirement, Texas mandates a 12-day waiting period between when you receive the required disclosures and when the loan can close. You also have 3 business days after closing to cancel the transaction. Both protections are required by the Texas Constitution.
How do Texas property taxes interact with a HECM?
HECM borrowers must keep property taxes current. Texas has no state income tax, but property taxes are among the highest in the country. Importantly, Texas offers a property tax freeze for homeowners 65 and older — the school district tax portion is capped at the amount owed in the year you turned 65. This freeze can significantly limit tax increases for HECM holders.
What if I have a HELOC on my Texas home?
An existing HELOC must be paid off and closed at HECM closing. Texas law also limits total home equity debt (including the HECM) to 80% of the appraised value — an important distinction from most states. Make sure to discuss this constraint with a licensed lender.
Where can I find a HUD-approved HECM counselor in Texas?
Use the HUD HECM Counselor Search (link above) filtered to Texas. Texas has a large network of HUD-approved agencies in Dallas, Houston, San Antonio, and Austin. Spanish-language counseling is widely available.