#3

Texas Reverse Mortgage Market Report

Statewide HECM Portfolio • Regulatory Framework: Strict Disclosure State

65 Active FHA Lenders

Texas Executive Market BLUF

Institutional VerifiedAugust 2026 (HUD FHA Single-Family Release)

Texas operates under Article XVI, Section 50(k) of the Texas Constitution, requiring specific statutory cooling-off periods and disclosures. The state has experienced the fastest compound annual growth in line-of-credit reverse mortgage originations between Austin and Dallas-Fort Worth.

Strategic Key Takeaways

  • Statewide senior home equity: $1120.0 Billion.
  • Average Maximum Claim Amount (MCA): $440,000.
  • Annual endorsement momentum: +11.9% YoY.
  • Regulatory category: Strict Disclosure State.
Total Senior Equity Pool
$1120BEquity Pool

4,350,000 seniors age 62+

Total HECM Volume
$1.62B+11.9%

Rank #3 Nationwide

Endorsements YTD
3,680Annual Pace

Prior Year: 3,290

Average MCA
$440,000FHA Insured

Median Home: $345,000

Texas HECM Endorsement History

Annual volume trajectory vs average claim amount

Endorsements
Avg MCA
4,900 loans
2021
6,300 loans
2022
3,290 loans
2023
3,680 loans
2024 YTD
Latest Endorsements3,680
Average Claim (MCA)$440,000
Line of Credit Share89.7%
Avg Borrower Age73.5 yrs

Top HECM Origination Counties in Texas

Calculate Borrowing Power in Texas

Institutional FHA HECM Principal Limit Calculator

HUD Mortgagee Letter 2017-17 Calibrated • 2026 FHA MCA Cap: $1,149,825

Non-Recourse Insured
Quick Scenarios:
$650,000
$150KFHA Cap: $1.15M$2.5M+ (Jumbo)
72 Years Old
Age 62 (Min)Age 75Age 95
$120,000
$0 (Free & Clear)$400K$800K
6.25%
4.00%6.25%8.50%
Eligible Non-Borrowing Spouse (NBS) Protection

Under HUD ML 2014-07, spouses of any age can be named as an Eligible Non-Borrowing Spouse, securing statutory rights to remain in the home indefinitely after the borrowing spouse passes away.

Net Available Principal Limit (LOC / Cash Payout)
$148,300PLF: 44.2%

Available immediately as an unused, guaranteed growing Line of Credit, or distributed as monthly tenure payments for life.

Gross Principal Limit$287,300
Tenure Monthly Payout$984/mo
Mandatory Debt Payoff$120,000
Max Claim Limit (Cap)$650,000
FHA Upfront MIP (2%)$13,000
Est. Total Closing Costs$19,000

10-Year Line of Credit Compounding Trajectory

Growth Rate: 6.75%
YearAvailable LineLoan BalanceEst. Retained Equity
Year 0$148,300$139,000$511,000
Year 2$168,996$158,398$537,898
Year 4$192,581$180,504$565,386
Year 6$219,457$205,694$593,322
Year 8$250,083$234,400$621,526
Year 10$284,984$267,112$649,777
Plain-English Borrower Safeguards:
Zero Monthly Mortgage Bills
You Retain 100% Home Title
Tax-Free Loan Proceeds
Non-Recourse Protection for Heirs

Machine & Academic Citation Index

ReversePulse Research Board. (August 2026). "Texas Reverse Mortgage (HECM) Market Intelligence Report." Systemores Institutional Reverse Mortgage Intelligence. Retrieved from https://reverse.systemores.com/trends/texas
Provenance: HUD FHA Single-Family Datasets & Texas Housing Division
Texas Reverse Mortgage Trends & HECM Data (2026) — ReversePulse | ReversePulse Intelligence