Texas Reverse Mortgage Calculator
Estimate how much tax-free cash your Texas home could unlock with a reverse mortgage — no monthly payments, with the strongest homestead protections in the country.
Nate Jones · NMLS #304056 · New American Funding
From Nate · 28 sec
Texas homeowner, 62 or older?
Quick context from Nate before you run your numbers.
Texas homeowners 62 and older can use an FHA-insured HECM reverse mortgage to convert home equity into tax-free cash with no monthly mortgage payment. The federal HECM formula applies: proceeds depend on the youngest borrower's age, current rates, and home value up to the 2026 FHA lending limit of $1,249,125. Texas specifics: reverse mortgages are authorized directly by the Texas Constitution (Article XVI, Section 50) with extra borrower protections; both spouses must generally consent under Texas homestead law; the over-65 homestead exemption and school-tax ceiling are unaffected; and HECM for Purchase has been legal in Texas since 2013. Nate Jones (NMLS #304056) serves all of Texas through New American Funding — free estimate, no credit pull.
Your Numbers
Enter $0 if your home is paid off
Must be 62 or older to qualify
Current reverse mortgage rates typically range 6.5-8.5%
Results
Estimated Available Cash
$220,000
Tax-free. No monthly payments required.
Your Home's Principal Limit
$220,000
Maximum FHA will lend based on your age and home value
Equity You Keep
$280,000
Remaining equity stays in your estate
Monthly Payment Required
$0
You never make a mortgage payment. Loan repaid when home is sold.
What Could You Do With This Equity?
Eliminate Monthly Payments
Use $220,000 to pay off your existing mortgage entirely — eliminating your monthly payment and freeing up $0 every month.
Monthly Income Stream
Receive approximately $1,833 per month for 10 years as a steady tax-free income stream.
Line of Credit
Keep $220,000as a growing line of credit — accessible when you need it, growing at the loan interest rate when you don't.
These are estimates based on simplified HECM guidelines. Actual amounts depend on current interest rates, your specific property, and FHA appraisal. Nate will run your exact numbers — free, no credit pull.
Texas Does Reverse Mortgages Differently — In Your Favor
Texas is the only state where reverse mortgages are written directly into the state constitution. Article XVI, Section 50 authorizes them and layers on protections you won't find elsewhere: Texas-specific disclosures, closing at a title company or attorney's office (never your kitchen table), and a requirement that both spouses consent to the lien under Texas homestead law — even when only one spouse is on the loan. A spouse under 62 can typically be protected as an Eligible Non-Borrowing Spouse with the right to remain in the home for life. The loans themselves are standard FHA HECMs; the guardrails are just taller here.
Market-wise, a typical Texas home runs roughly $330,000-$350,000 statewide, with Austin, the Dallas Park Cities, and west Houston well above that and much of San Antonio and Fort Worth below. Since HECM proceeds are a percentage of value, the same 72-year-old unlocks a very different number in Westlake than in Waco — run your own numbers above.
Texas Property Taxes and the Financial Assessment
The one Texas wrinkle that deserves early attention is property taxes — among the highest in the nation, and staying current on them is a core obligation of every reverse mortgage. The financial assessment confirms your budget can carry them; if it's tight, the lender may set aside part of your proceeds in a Life Expectancy Set-Aside that pays them automatically. Working in your favor: the over-65 homestead exemption and the school-district tax ceiling meaningfully cut the bill, and neither is affected by taking a reverse mortgage. If you've been using the over-65 tax deferral, expect that to end — deferred taxes accrue against the same equity the loan is secured by, so lenders require taxes paid current going forward.
Related Calculators & Guides
Texas Reverse Mortgage FAQ
Common Questions
How much can my Texas home unlock?
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What are the Texas spousal signing rules?
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