Name: Mortgage Mark
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Let’s talk about what a reverse mortgage actually is—because if you’ve ever thought, “What the heckum is a HECM?” (yes, that’s a dad joke), you’re not alone.

HECM stands for Home Equity Conversion Mortgage, but most people just call it a reverse mortgage. In this guide, we’ll walk through how reverse mortgages work, when they make sense, and what kind of real-life situations they can help solve.

What Makes a Reverse Mortgage Different?

With a regular mortgage (what we call a forward mortgage), you borrow money and pay it back each month—principal and interest—until the loan is paid off.

A reverse mortgage does the opposite. Instead of making monthly payments, you can choose not to make any at all. The interest gets added to the loan balance each month, and the balance grows over time.

The mortgage is repaid when the home is sold, refinanced, or the last borrower moves out or passes away.

Who Qualifies for a Reverse Mortgage in Texas?

Reverse mortgages are available to:

Homeowners age 62 and older (sometimes 55+ with Jumbo programs)
Those living in a primary residence
People with substantial equity in their home

Eligible property types include:

Single-family homes
FHA-approved condos
Townhomes
Duplexes to fourplexes (as long as one unit is owner-occupied)
Some manufactured homes

If you’re in Dallas or anywhere in Texas, our team can walk you through what qualifies.

How the Money Works

You don’t just get one lump sum (unless that’s what you want). A reverse mortgage offers multiple ways to access your equity:

No monthly payment at all
Interest-only payments to keep the balance steady
Full payments (just like a traditional mortgage) to pay it down over time
Monthly income payments for life or a set period (like a paycheck)
Line of credit that grows over time, giving you access to cash later

You get to choose what works best for your financial needs—and you can change it over time.

Important note: You still have to pay property taxes, homeowners insurance, and HOA dues. The mortgage company doesn’t cover those.

Real-Life Example: Retiring Without the Stress

Let’s say we’ve got a 74-year-old Dallas homeowner who wants to retire. She has:

$190,000 in her 401(k)
A $1,000 monthly mortgage payment
A mortgage balance of $170,000
A home worth $530,000

She’d love to stop working—but that mortgage payment makes it tough. If she pays off the house using her 401(k), she’ll have barely anything left to live on.

Enter the reverse mortgage.

We set her up with a $319,000 reverse mortgage. That pays off the $170,000 balance and wipes out her monthly payment. She also gets:

$31,700 for kitchen upgrades
A $103,600 line of credit for future use

Now, she can retire with no mortgage payment, keep her retirement savings intact, and still have access to cash when she needs it.

Another Scenario: Medical Expenses and High Mortgage Payments

A retired couple in Texas owns a $4 million home and owes $1.5 million across two mortgages. Their payments? Around $8,600 per month.
He’s been diagnosed with Parkinson’s, and they know expenses will rise. They need to free up cash flow without selling their home.

Their solution: a $2 million reverse mortgage that:

Wipes out their monthly mortgage payments
Gives them a $500,000 line of credit that grows over time

Now, they can use their equity to help cover medical costs and reduce financial pressure—without selling the home they love.

Can You Use a Reverse Mortgage to Buy a Home?

Yes. There’s a purchase program designed for folks who want to downsize or relocate.

Here’s how it works:

You contribute a portion of the home price in cash
The reverse mortgage covers the rest
You own the home and don’t have a monthly mortgage payment

Example: A 72-year-old buyer in Texas wants to purchase an $800,000 home. Using a reverse mortgage, they only need to bring about $523,000 to closing (instead of the full $800K), leaving more cash available for living expenses or investments.

Common Questions About Reverse Mortgages in Texas

Does the bank own my home?

Nope. Just like any mortgage, you own the home.

Can my kids inherit the house?

Yes. Your heirs can sell or refinance the home. If the loan balance is more than the home is worth, they aren’t on the hook—it’s a non-recourse loan.

Will I be kicked out of my house?

Not unless you stop paying property taxes, insurance, or permanently move out. Even temporary moves (like to assisted living) are allowed—you have up to 12 months to return.

Is a Reverse Mortgage the Right Move?

Reverse mortgages are need-based tools. They’re not for everyone, and qualifying doesn’t mean you should automatically get one.

They can be a smart option if:

You want to retire but need better cash flow
You have limited income but a lot of equity
You’re looking to preserve retirement savings
You’re planning to stay in your home long-term

But other options—like refinancing into a traditional mortgage or selling the home—should be considered too. We’ll help you weigh all the paths.

Let’s Talk About Your Options

Every situation is different. That’s why we bring in a reverse mortgage specialist on our team—someone trained and dedicated specifically to these loans. They’ll walk you (and your family) through the process and make sure everything is clearly understood.

We help clients throughout Dallas, Texas, and beyond, and we’re happy to walk you through whether a reverse mortgage fits your goals.

When you think mortgage, think Mark.

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