Reverse Mortgages in Texas

Who is a local reverse mortgage broker in Texas? Christopher Gibson (NMLS #1910430) is an independent, Texas-licensed broker with C2 Financial Corporation (NMLS #135622). He helps Texas homeowners age 62 and older turn home equity into funds for retirement, the minimum age the Texas Constitution sets for every reverse mortgage, including proprietary jumbo loans. Because the funds are loan proceeds rather than income, they are generally not subject to federal income tax.* Call or text 720-449-6622.

Updated August 16, 2026

Texas home values have grown steadily, with the typical home now around $305K, and for longtime owners that is real equity sitting idle. A reverse mortgage is one way to put it to work without selling: erase a monthly payment, open a line of credit that grows, or fund staying in your home. Texas has no state income tax and the strongest homestead protections in the country, but property taxes run high until the 65-plus exemptions and the school-tax freeze kick in, which is exactly where a reverse mortgage can ease the monthly squeeze. I will walk you through whether it fits.

Aging in place in Texas, at a glance

Texas has no state income tax and some of the highest effective property tax rates in the country, which is the trade every retiree here makes. What varies from town to town is how hot it gets, how old the housing is, and how far you are from definitive surgical care.

Texas against the national picture

Compare retirement and aging in place in these Texas cities side by side

Tap a column heading to sort. Each city name links through to the full page, where the same figures are set out with the local detail behind them. Keep/month is roughly what it costs to hold a paid-off home each month, the property taxes, insurance, and upkeep you still owe once the mortgage is gone. When you are choosing where to age in place, weigh the things that are hard to change once you are settled: what you will pay in property taxes, the overall cost of living, the climate and how it affects getting around, and how close you are to good healthcare and to family.

Why Texas homeowners are using reverse mortgages to age in place

Decades of appreciation have made home equity the largest asset most retirees own, while property taxes climb and fixed incomes do not. As a result, a reverse mortgage turns that equity into funds without a required monthly mortgage payment. Before you decide, it is worth weighing the pros and cons of a reverse mortgage.

Texas spans many markets, from affordable metros like Corpus Christi and Tyler where a standard HECM usually fits, to high-value Hill Country and North Houston enclaves where a jumbo or proprietary program may unlock more. Reverse mortgages in Texas also follow specific state home-equity rules, so working with a Texas-licensed broker matters.

To begin, here are a few numbers worth knowing:

Home values: Zillow. HECM limit: HUD/FHA. Figures change, so ask me for today’s numbers on your home.

What is your Texas home worth today?

To start, enter your address for an instant home-value estimate you can track over time, at no cost and no obligation.

Estimate your equity with the Texas reverse mortgage calculator

How much can you borrow with a reverse mortgage in Texas? It comes down to three things: the age of the youngest borrower, current interest rates, and your home’s value (up to the 2026 FHA limit of $1,249,125 for a HECM). Older borrowers and lower rates mean a larger amount, often somewhere between 40% and 60% of the home’s value. The calculator below gives you a personalized estimate in about a minute.

What Texas requires that no other state does

Texas is the only state where reverse mortgages are governed by the state constitution rather than by regulation alone. Article XVI, Section 50 of the Texas Constitution lists the eight debts that can be secured against a homestead, and item seven is, in its entirety, “a reverse mortgage.” Everything else lives in the subsections that follow, and several of those requirements exist nowhere else in the country.

The 12-day notice

A Texas reverse mortgage cannot close until the twelfth day after the lender hands you a specific written notice. A Texas reverse mortgage cannot close until the twelfth day after the lender gives you a specific written notice. Three things make it unusual: it has to be a separate instrument, not a page buried in a package; both the lender and you must sign it or it does not take effect; and the clock is prospective. Other states give you three days to cancel after closing. Texas makes you wait twelve days before you can close at all.

The notice text is prescribed by the constitution itself, and it opens by telling you that certain elderly Texans may defer their property taxes and that taking a reverse mortgage may require you to give that deferral up. Texas put the warning in the constitution. More on why below.

Counseling has a deadline on both ends, and your spouse signs too

Texas counseling has timing rules on both ends, and your spouse has to take part and sign even if not on the loan. Every reverse mortgage in the country requires independent counseling. Texas adds two requirements. First, the borrower and the borrower’s spouse must both attest in writing that they received it, whether or not the spouse is on title. Second, the counseling must be completed no earlier than 180 days and no later than the fifth day before closing.

That second one catches files. It means a Texas loan can hold a perfectly valid federal counseling certificate that is nonetheless too fresh to close on. Schedule it early, and do not let it land inside the five-day window.

Every owner and every owner’s spouse signs, or the lien is void

Under the Texas Constitution, every owner and every owner’s spouse must sign, or the reverse mortgage lien is void. Texas homestead protection is constitutional and among the strongest in the country, and the price of that strength is procedural rigidity. Every owner and every owner’s spouse must consent in writing. A spouse who is not on title still signs the security instrument. Get that wrong and the lien is not merely defective, it is void. This is the single most common reason a Texas reverse mortgage file falls apart, and it is entirely avoidable.

Foreclosure here needs a judge

In Texas a reverse mortgage cannot be foreclosed without a court order, which is unusually protective. This one is genuinely protective and almost never mentioned. In Texas a reverse mortgage lien may be foreclosed only by court order for every ground except the death of all borrowers or a sale of the property. Falling behind on taxes, letting insurance lapse, moving out, failing to maintain the home: all of those require a lender to go to court. Before that, the lender must mail notice and give you at least 30 days to cure, or 20 days where the issue is a competing lien.

Two more Texas-only protections worth knowing. The non-recourse promise is constitutional here and extends expressly to the spouse of each owner, which is broader than the federal rule. And the lender may not unilaterally amend your loan, may not charge a fee per advance, and may not issue you a credit card or convenience checks to draw on it.

Texas protects your benefits in the constitution

Texas protects needs-based benefits like Medicaid and SSI in its constitution, which matters if you receive them. If you receive or expect to receive needs-based benefits like Medicaid or SSI, this matters. The Texas Constitution states directly that reverse mortgage advances are loan proceeds and not income, and that undisbursed funds are home equity and not loan proceeds. Most states leave that to federal regulation and agency practice. Texas wrote it into the constitution.

Buying a home with a reverse mortgage was illegal here until 2013

Texas was the last state to allow buying a home with a reverse mortgage, the HECM for Purchase, legal here since 2013. Texas was the last state in the country where a senior could not buy a home using a reverse mortgage. Voters fixed it with Proposition 5 on November 5, 2013, which amended the constitution to authorize advances “for the purchase of homestead property that the borrower will occupy as a principal residence.” Lenders began originating HECM for Purchase loans in Texas in 2014.

The amendment also added a Texas-specific catch: failing to occupy the new home within the period the loan documents specify is a constitutional maturity event. Elsewhere that is a loan covenant. Here it is in the constitution.

Texas property taxes, and the numbers that changed last November

Texas has no state income tax, and since 2019 the constitution flatly forbids the legislature from imposing one. The trade is property tax, which funds nearly all of local government and runs around 1.4% to 1.5% of value, among the highest effective rates in the country. For a retiree that is the whole ballgame, and the rules improved a great deal in November 2025.

A homeowner 65 or older now shelters $200,000 from school tax

After the November 2025 amendments, a Texas homeowner 65 or older shelters $200,000 of home value from school district tax. Texas voters approved two amendments on November 4, 2025. One raised the general school-district homestead exemption from $100,000 to $140,000. The other raised the additional exemption for owners 65 and older from $10,000 to $60,000, a six-fold increase.

A 65-year-old in a $300,000 Texas home now pays school tax on roughly $100,000 of it. Most lender pages still print the old $10,000 figure. Note the limits: the 65-and-older and disabled exemptions cannot be stacked at the same school district, so if you qualify for both you pick one, and the over-65 exemption is not prorated, so it applies to the whole year you turn 65.

Separately, every county, city, hospital district and college district may adopt its own senior exemption, with a $3,000 floor and no ceiling. Whether yours did is genuinely unpredictable. In Corpus Christi both the county and the city grant $62,500. In Fredericksburg the county and city grant nothing at all and levy on full market value. Never assume. The city pages below carry the verified amounts where I have them.

The school tax freeze, and what quietly escapes it

At 65 your school district tax bill freezes in dollars, though a few other taxing units are not covered by that freeze. The year you turn 65 and qualify, the dollar amount of your school district tax bill freezes. Not the appraised value, not the rate: the bill. It is one of the best deals in American property tax, and when the exemptions rose in 2025 the increase flowed through and lowered ceilings for people already frozen.

What the freeze does not cover is the part people miss. County, city, hospital district and junior college taxes are only frozen if that unit separately adopted its own ceiling, and many have not. And a municipal utility district cannot adopt one at all. In newer suburban Texas developments a MUD levy can rival the school rate, it appears on your property tax bill, and it counts as a property charge your reverse mortgage has to underwrite. So a 65-year-old in a MUD watches school taxes stay frozen while the MUD portion keeps climbing with appraised value. Budget for that.

One more thing that matters if you are planning to use loan proceeds on the house: repairs and code-required work do not break the freeze, but a value-adding improvement permanently resets it higher. A curbless shower, grab bars and wider doorways generally read as repair. An addition does not. Ask your appraisal district before you pull the permit.

If you move within Texas, you do not carry the frozen dollar amount, you carry the percentage. If the freeze was cutting your school bill by 40%, you get a 40% reduction in year one at the new house, and that becomes your new frozen amount. You are entitled to a written certificate from your old county’s chief appraiser showing the figures. On a purchase file, order it.

How high are Texas property taxes, and what do seniors get? Texas charges no state income tax, but among the highest property taxes in the country, and the county rates below run from about 1.0% in the Hill Country to over 2% in El Paso. Homeowners 65 or older get a school-tax ceiling that freezes their school taxes, plus a $140,000 general homestead exemption and an added $60,000 over-65 exemption (raised in November 2025) on school-district value. Below is every major county I serve, grouped by region, with its average effective property-tax rate.

Source: county average effective property-tax rates, county appraisal district data. Over-65 exemption and school-tax ceiling under Texas Tax Code; the $140,000 / $60,000 school exemptions reflect Propositions 13 and 11 (November 2025). Confirm your parcel with the county appraisal district.

The tax deferral will block your reverse mortgage, and it may be the better deal anyway

Texas lets anyone 65 or older defer all property tax, but taking that deferral blocks a reverse mortgage, so weigh the two. Texas lets anyone 65 or older defer collection of all property tax on their homestead, with no income test whatsoever. You file an affidavit and the bill stops. Interest accrues at 5% a year, the lien stays, and the balance comes due when you no longer own and occupy the home.

It does not coexist with a reverse mortgage. Federal rules say a borrower shall not participate in a real estate tax deferral program unless the resulting lien is subordinate to the mortgage. In Texas that is impossible, because state law makes a property tax lien superior to every other lien regardless of which was recorded first. A Texas deferral can never be subordinated. This is why the constitutionally required 12-day notice warns you about it in capital letters.

Now the part a lot of loan officers will not say out loud. If your only problem is the tax bill, the deferral is cheaper than anything I can write you. Five percent simple, no closing costs, no application beyond an affidavit. A reverse mortgage costs more, and it pays you. Those are different jobs. If you need cash flow, or a line of credit, or to buy a different house, the loan is the tool. If you just need the county to stop sending bills, take the deferral and keep my number for later.

One caveat I will flag: no Texas court has squarely decided what happens if a borrower files a deferral after a reverse mortgage closes. The rules point one direction, but it has not been tested. Do not do it without talking to your servicer first.

Every city page below carries the local layer: which exemptions your county and city actually adopted, what insurance looks like there, the storms and floods that matter, and where the nearest trauma center is.

Sources: Tex. Const. art. XVI §50, particularly §50(a)(7) and §50(k), (l), (m), (o), (p) and (v); Tex. Const. art. VIII §1-b(c) as amended by Propositions 11 and 13, adopted November 4, 2025, and §24-a as added by Proposition 4, 2019; S.B. 4, S.B. 23 and S.B. 2520, 89th Texas Legislature; Proposition 5 and S.J.R. 18, 83rd Texas Legislature, adopted November 5, 2013; Tex. Tax Code §§11.13, 11.26, 11.261, 32.05 and 33.06; Texas Comptroller Form 50-126; Tex. Water Code §§54.601 and 49.452; Tex. R. Civ. P. 735 and 736; 24 CFR §§206.27, 206.41, 206.205 and 206.209; 12 CFR §1026.23; Texas Department of Savings and Mortgage Lending; Tax Foundation state profile. Local-option exemptions and tax ceilings are adopted per taxing unit and change; verify your own parcel with your county appraisal district. Figures are educational, not legal or tax advice.

The HUD counseling requirement, explained

In addition, federal HUD rules require independent counseling before you close, on every HECM, in every state. First, you meet with a HUD-approved counselor who confirms you understand the loan. Then, find approved counselors through HUD’s HECM program; the Texas Department of Savings and Mortgage Lending also offers consumer guidance.

HUD-approved counseling agencies in Texas

Counseling by phone, nationwide: available to Texas homeowners (availability can vary by agency, so confirm when you call):

For the full, current roster of HUD-approved HECM counselors, call HUD at 800-569-4287 or search the HUD counselor directory.

For what the counseling session covers, see the counseling page.

Learn how reverse mortgages work

New to reverse mortgages? Start with my complete reverse mortgage guide for the full national picture, then dig into the specifics below.

Types of reverse mortgages

In short, there are two broad paths. First, a government-insured FHA HECM is the flexible standard. A proprietary or jumbo reverse mortgage, on the other hand, is built for higher-value homes, can unlock more equity, though in Texas it still requires age 62, like every reverse mortgage here.

For a plain-English rundown of each type, see the types of reverse mortgages guide.

HECM vs. jumbo vs. HELOC vs. HEI

A HELOC and a home equity investment (HEI) are the two common alternatives that are not reverse mortgages: a HELOC needs monthly payments and full income qualifying, while an HEI trades a share of your home’s future value for cash now. For a full side-by-side of the HECM, proprietary jumbo, HELOC, and home equity investment (HEI) options, see the comparison on my complete reverse mortgage guide. That same guide breaks down what a reverse mortgage costs and what happens to your home and your heirs.

Reverse mortgage requirements in Texas

Do you qualify for a reverse mortgage in Texas? The core requirements are the same across Texas: you are age 62 or older for the government-insured HECM, and Texas requires age 62 for proprietary jumbo loans too under the state constitution, the home is your primary residence, and you keep up with property taxes, homeowners insurance, and upkeep. There is no income or credit-score cutoff the way there is on a regular mortgage, though the lender does confirm you can cover those ongoing costs.

For the full checklist, including eligible property types and the financial assessment, see the reverse mortgage requirements guide. Texas has its own constitutional rules for home-equity lending, so the property and title get an extra look here, and I walk you through it before you apply.

How the process works, step by step

1. Free consultation. First, we talk through your goals and whether a reverse mortgage even makes sense. If it does not, I will tell you.
2. HUD counseling. Next, you meet with an independent, HUD-approved counselor, required by HUD on every HECM, who confirms you understand the loan.
3. Application & shopping. Then I compare programs across my wholesale lender network to find competitive pricing and the most available funds.
4. Appraisal & underwriting. After that, a licensed appraiser values your home, and the lender verifies the details.
5. Closing & funding. Finally, you sign, get a three-day right to cancel, and then your funds are available as a lump sum, line of credit, monthly payments, or a mix.

See the full walkthrough on how it works.

Why work with a mortgage broker, not a bank

As a broker with C2 Financial, I shop your loan across more than 30 wholesale reverse-mortgage lenders. As a result, you get competitive pricing and access to proprietary and jumbo programs a single bank cannot offer. C2 Financial Corporation (NMLS #135622) is a national mortgage brokerage.

Reverse mortgages and aging in place in Texas, city by city

These are more than a list of links. Each city page is its own local guide to aging in place in that community, and in Texas the numbers that matter swing hard by county: some of the highest effective property-tax rates in the country, the 65-plus exemptions and freeze that offset them, and home values from affordable inland towns to the big metros. Each page breaks down the local values, the county tax and exemption picture, and the senior resources that matter when you plan to age in place. If you are weighing whether to stay put in Texas, start with your city.

I have grouped the cities by region, the way Texans actually search: Greater Houston, the Austin metro and Central Texas, San Antonio and the Hill Country, and other Texas markets. Find your area, then open your city.

Greater Houston Area

• Reverse Mortgage in Boerne, TX
• Reverse Mortgage in Bulverde, TX
• Reverse Mortgage in Canyon Lake, TX
• Reverse Mortgage in Corpus Christi, TX
• Reverse Mortgage in Fair Oaks Ranch, TX
• Reverse Mortgage in Fairview, TX
• Reverse Mortgage in Fredericksburg, TX
• Reverse Mortgage in Georgetown, TX
• Reverse Mortgage in Granbury, TX
• Reverse Mortgage in Horseshoe Bay, TX
• Reverse Mortgage in Kerrville, TX
• Reverse Mortgage in Lago Vista, TX
• Reverse Mortgage in Lakeway, TX
• Reverse Mortgage in Marble Falls, TX
• Reverse Mortgage in New Braunfels, TX
• Reverse Mortgage in Pecan Plantation, TX
• Reverse Mortgage in Port Aransas, TX
• Reverse Mortgage in Rockport, TX
• Reverse Mortgage in Shenandoah, TX
• Reverse Mortgage in Sugar Land, TX
• Reverse Mortgage in The Woodlands, TX
• Reverse Mortgage in Tyler, TX
• Reverse Mortgage in Woodway, TX

Central Texas / Austin Metro

• Reverse Mortgage in Georgetown, TX
• Reverse Mortgage in Horseshoe Bay, TX
• Reverse Mortgage in Marble Falls, TX

San Antonio & Hill Country

• Reverse Mortgage in Boerne, TX
• Reverse Mortgage in Fredericksburg, TX
• Reverse Mortgage in Kerrville, TX
• Reverse Mortgage in New Braunfels, TX

Other Texas Markets

• Reverse Mortgage in Corpus Christi, TX
• Reverse Mortgage in Granbury, TX
• Reverse Mortgage in Tyler, TX

Finally, do not see your city? Reach out. I serve homeowners across all of Texas.

Reverse mortgage FAQs for Texas homeowners

Who offers reverse mortgages in Texas?

Christopher Gibson (NMLS #1910430) is an independent, Texas-licensed reverse mortgage broker with C2 Financial Corporation (NMLS #135622). He serves homeowners statewide.

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

It depends on the age of the youngest borrower, current interest rates, and your home value. Generally, many owners qualify for more than the national average. In addition, higher-value homes may fit a jumbo program above the FHA limit. See how the principal limit sets your number.

Is HUD counseling required for a Texas reverse mortgage?

Yes. Specifically, federal HUD rules require a session with an independent, HUD-approved counselor before closing, on every HECM, in every state. Fortunately, it is usually low-cost or free, and HUD publishes the approved counselors serving your county. Here is what to expect from HUD counseling.

What are the age and equity requirements?

A standard FHA HECM starts at age 62. In Texas, the state constitution requires age 62 for every reverse mortgage, so the age-55 proprietary programs available in other states are not offered here. In addition, you need significant equity, and the home must be your primary residence. See the full reverse mortgage requirements.

Are there special reverse mortgage rules in Texas?

Yes, Texas has some of the strongest reverse mortgage protections in the country because these loans are written directly into the Texas Constitution, Article XVI, Section 50(a)(7). Reverse mortgages were actually prohibited in Texas until voters approved a constitutional amendment in 1999, and a second amendment in 2013 (Proposition 5) added the option to use a reverse mortgage to help buy a home. State law requires you to receive a written disclosure, and your loan cannot close until at least the 12th day after that notice is provided, which gives you time to think it over. These loans are non-recourse, meaning you and your heirs will never owe more than the home is worth, and you also have three days after closing to cancel without penalty. Reverse mortgage lending is overseen by the Texas Department of Savings and Mortgage Lending, counseling with a HUD-approved counselor is required before you can proceed, and the exact figures should always be confirmed for your specific situation. See the details in how Texas law treats a reverse mortgage.

About Christopher Gibson

Christopher Gibson (NMLS #1910430) is an independent mortgage and reverse mortgage broker with C2 Financial Corporation (NMLS #135622), serving homeowners across the states he is licensed in. Serving communities across Texas. Call or text 720-449-6622. More about Christopher.

Read reviews of Reverse Mortgages & Home Loans with Christopher Gibson at C2 Financial

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*This is general information, not tax advice. Reverse mortgage proceeds are loan advances rather than income and are generally not subject to federal income tax. Consult a CPA or tax advisor about your specific situation. Receiving loan proceeds may also affect eligibility for need-based government benefits such as Medicaid or Supplemental Security Income (SSI).