Someone who called for a consultation in Arlington asked, "My name is not on the house documents, only my wife's name is. Does that mean I can't get a reverse mortgage?" When I receive such questions, I first explain the terms in simple language. Today, I will follow that approach.

A reverse mortgage is a product that allows homeowners aged 62 and older to borrow against the equity of their home. Simply put, instead of paying the bank monthly, you receive money from the bank using your home as collateral. You can choose to receive the funds as a lump sum, monthly payments, or a line of credit, and the principal and interest are settled when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The most common product is the HECM, which is insured by the FHA and is the only type of reverse mortgage backed by the federal government.

Now, let's address the earlier question. Even if the title is solely in the spouse's name, if you are over 62 and living with your spouse, you can consider restructuring the title to joint ownership or listing the non-borrowing spouse. If the terminology is unfamiliar, think of the non-borrowing spouse as someone who is not the borrower but is protected to continue living in the home even if the borrower passes away, provided certain conditions are met. However, the requirements can vary based on individual circumstances, so it's essential to confirm with a HUD-approved counselor.

There are three main things to check in order. First, eligibility requirements: being over 62, whether it is the primary residence, the ability to repay any existing mortgage, and passing a financial assessment are fundamental. Second, costs: the origination fee, an initial mortgage insurance premium of about 2%, and an annual fee of around 0.5%, along with closing costs, make the initial expenses higher than a standard mortgage. Third, property taxes: the effective property tax rate in Tarrant County, where Arlington is located, is about 1.47%, with the median homeowner paying approximately $5,162 annually. The average effective tax rate in Texas is 1.31%, which is higher than the national average of 0.89%. Even with a reverse mortgage, the obligation to pay property taxes remains, so it's crucial to ensure you can continue to manage this expense.

The median home price in Arlington is about $340,000 (as of July 2026). This serves as a basis for estimating the available equity, but keep in mind that the actual loan limit can vary based on age, interest rates, and appraisals.

To summarize the pros and cons:

• Pros: Ability to secure cash flow without monthly repayment burden, non-recourse loan structure means no burden on heirs if home value decreases
• Cons: Decreasing home equity over time, risk of default if property taxes or insurance premiums are unpaid, higher initial costs compared to standard mortgages

To explain it more simply, the interest on a reverse mortgage accumulates on the outstanding loan balance each month. In simple terms, since you are not making payments, the debt increases over time, which reduces your equity. After the owner passes away, heirs can choose to sell the home to settle the debt, buy it at the lower of 95% of the appraised value or the loan balance, or transfer the home. Decisions must be made within a specified timeframe, so it's advisable to discuss this with family in advance.

As of 2024, 13.9% of Texas's population is over 65, which is lower than the national average, but the number of retirees continues to grow with the population. As interest in reverse mortgages increases, it's important to remember that scams targeting the elderly do exist. HECM requires mandatory counseling from a HUD-approved agency before applying, and I recommend asking all your questions about terms and conditions during that session. It's also a good idea to discuss your decision thoroughly with your family. This article is not investment or legal advice, and I recommend consulting with a professional before entering into any contracts.