A senior who retired in Irving recently shared their thoughts. They mentioned that living solely on Social Security benefits makes it difficult to cover monthly expenses, and they were unsure how to utilize their home, which is nearly paid off. In this situation, a reverse mortgage is worth considering.

The first thing to check is the market value in our neighborhood. The typical value of homes in the Irving area is estimated to be around $341,000 as of 2026. Homes that have been lived in for a long time are likely to have substantial equity, but the exact amount of equity should be confirmed through an appraisal. Irving is located between Dallas and Fort Worth, making it a region with good access to commercial facilities and jobs, and its market value has remained relatively stable. However, this advantageous location does not automatically increase the loan limit; the actual limit is determined separately based on the appraisal and the owner's age.

Looking at it step by step, there are three main points to consider.

• First, the mechanism. A reverse mortgage is a product that allows homeowners aged 62 and older to borrow against the equity in their home in the form of a lump sum, monthly payments, or a line of credit. Instead of making monthly payments, the loan is repaid when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The HECM, insured by the Federal Housing Administration, is a representative product.
• Second, the eligibility requirements. You must be at least 62 years old, the home must be your primary residence, and you must pass a financial assessment to ensure you can continue to pay property taxes and insurance. If you are living on a fixed income and find it challenging to cover living expenses, it's wise to assess whether you can pass this financial assessment in advance.
• Third, the costs and risks. The initial costs, including origination fees, mortgage insurance premiums, and closing costs, are generally higher than those of a traditional mortgage. The mortgage insurance premium starts at about 2 percent initially and adds 0.5 percent annually.

Irving generally falls under Dallas County, where the average effective property tax rate is around 2 percent. Even after obtaining a reverse mortgage, you will still be responsible for paying property taxes and insurance, and failing to do so could lead to a risk of default.

As you follow this process, a natural question arises: what alternatives exist if a reverse mortgage is not suitable? You might consider asking your children for financial support, moving to a smaller home, or obtaining a traditional home equity loan. The right answer varies for each household, so it's best to weigh multiple options side by side.

Additionally, there is one more crucial point to verify. There are indeed solicitations and scams targeting seniors related to reverse mortgages. If you receive a hurried request for a signature from an unfamiliar caller or door-to-door salesperson, it's wise to pause and check with family or a HUD counseling agency first. I advised this senior to attend the consultation with their children. Going through the steps together can help reduce misunderstandings or regrets later on.

After reviewing these three points, you will move on to the process of applying for an actual appraisal and financial assessment. At this stage, it's important not to rush and to clarify any questions as they arise.

On the flip side, there are clear advantages. Because of the non-recourse structure, if the home value decreases below the loan balance, the heirs are not required to pay the difference thanks to FHA insurance. However, it's important to consider that as time goes on, the equity decreases, which may reduce the assets left for your children.

Finally, the consultation process must be confirmed. HECM requires mandatory counseling with a HUD-approved counseling agency before applying. I hope you take the time to discuss this thoroughly with your family before making a decision. This article is not investment or legal advice, and I recommend consulting a professional before entering into any contracts.