How did the Reverse for Purchase Mortgage come to Texas?

Reverse mortgages have been offered in Texas since 2001 — but the reverse
for purchase mortgage is a fairly new product. Even though other states have been issuing reverse for purchase mortgages for many years, they have only been available in Texas since 2014. Here’s an overview of how the legislation came to pass.

Proposition 5

On November 5, 2013, The Texas Reverse Mortgage Loan Amendment, Proposition 5, was approved by majority vote, as a legislatively referred constitutional amendment. The amendment authorized the making of a reverse mortgage loan for the purchase of homestead property, and amended lender disclosures and other requirements in connection with a reverse mortgage loan. Texas lenders began offering reverse for purchase loans in March of 2014, after documentation was approved through the Texas Real Estate Commission (TREC).

What took Texas so long?

At the time Proposition 5 was passed, Texas was the second-largest market for reverse mortgages — but the only state in the union that didn’t offer the reverse for purchase mortgage. The state’s Constitution did not allow this type of mortgage, which allows a person to purchase a new primary residence and obtain a reverse mortgage in a single transaction. Proposition 5 amended the Texas Constitution, making it possible for
seniors to buy a new home with a reverse for purchase mortgage (HECM for Purchase). The legislation also required lenders to expand required counseling to borrowers, ensuring seniors fully understand how the reverse for purchase mortgage works.

Why hasn’t my Realtor/lender/attorney heard of it?

Reverse for purchase mortgages have only been offered in Texas since 2014, and we’re still trying to get the word out to the lending, legal and real estate communities. Sunny Hoppe offers Continuing Education classes for Realtors and other professionals who would like to learn more about this mortgage product. For more information, call Sunny at 972-784-8400.


The Reverse for Purchase Learning Center

We believe that an educated homebuyer will make the best decisions —
and believe buyers should have all the information necessary to decide
whether a reverse for purchase mortgage is right for them. Here in our
Learning Center, we’ll post articles, updates and relevant information for
homebuyers, builders and Realtors.  Browse our articles below, and be
sure to check back often to see what’s new.

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All consumer complaints are handled by Lender Support Services, LLC. Should you have a complaint, for any reason, please email Stuart Scull at or call 855-554-6155. Lender Support Services, LLC will follow up with you for resolution.

Pursuant to the requirements of Texas administrative code, Title 7, Section §81.200(c),You are hereby notified of the following: Consumers wishing to file a complaint against a Mortgage Banker or a licensed Mortgage Banker Residential Mortgage Loan Originator should complete and send a complaint form to the Texas department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint Forms and Instructions may be obtained from the department's website at A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department's website at