Slow to adapt reverse mortgages, Texas is the last state not to offer this financial instrument.
One of the Texas consumer safeguards requires owning equity in a house before anyone could apply for a reverse mortgage…
With declining home values, lenders are hesitant to participate in a reverse mortgage. These are specialty loans only available to borrowers 62 years of age and older to release the home equity of the property in lump sums or multiple payments.
When home prices are falling, no lender wants to pay one dollar for a property that could be valued at fifty cents in a few years.