HECM for Purchase in Texas
Buy your Texas home with no monthly mortgage payment

JP Dauber, NMLS# 386298

Reverse Mortgage Specialist

Last updated March 15, 2026

Why Texas is great for HECM for Purchase

Texas has been attracting retirees for years — and the reasons are straightforward. No state income tax, affordable housing compared to the coasts, and a variety of lifestyle options from big-city metros to Hill Country towns.

No state income tax

HECM proceeds aren't federally taxable, and Texas charges no state income tax. Your retirement income is exceptionally tax-efficient here.

Strong homestead protections

Texas has some of the strongest homestead protections in the country. The constitutional provisions that add extra closing steps for reverse mortgages are there to protect you — they're a feature, not a bug.

Over-65 tax benefits

Texas freezes your school district property taxes once you turn 65. This cap transfers if you move within Texas, keeping your ongoing costs predictable.

The Texas 12-day rule

Texas has unique constitutional protections around reverse mortgages. The most important one for HECM for Purchase buyers: there's a mandatory 12-day cooling-off period after closing before the loan funds are disbursed.

This means your total timeline from application to move-in is typically 50–65 days, slightly longer than in other states. It's not a barrier — just a timeline difference to plan for when making offers. Your real estate agent and lender should both be aware of this.

Texas market estimates

TX Metro Area

Approx. Median

Approx. Down (age 72)

Dallas/Fort Worth

$380,000

~$190,000

Houston

$320,000

~$160,000

Austin

$480,000

~$240,000

San Antonio

$300,000

~$150,000

Down payment estimates assume age 72, ~50% at typical expected rates. Use the calculator for personalized numbers.

Texas protections apply here too

Texas's no-income-tax environment, strong homestead protections, and diverse housing market make it an excellent state for HECM for Purchase. The 12-day cooling-off period adds a little time to the process, but it protects you — and it's well worth the wait for a lifetime of no monthly mortgage payments.

Ready to see the numbers? Try the calculator or reach out — I'm licensed in Texas and can walk you through the process.

Keep reading

HECM for Purchase →

The complete guide to buying with a reverse mortgage

Reverse Mortgages in Texas →

Statewide HECM education and TX-specific rules

Down Payment Guide →

How much you need and where it comes from

Purchase Calculator →

Run your Texas numbers in 60 seconds

Frequently Asked Questions

Does Texas have special rules for reverse mortgages?

Yes. Texas has additional constitutional protections for homeowners. The key difference: Texas requires that the HECM for Purchase close at the title company, not the lender's office, and there's a 12-day cooling-off period after closing before funds are disbursed. These rules protect you — they just add a few extra days to the timeline.

Does the Homestead Exemption apply to my new home?

Yes. Texas's generous Homestead Exemption applies as soon as you establish the home as your primary residence. Additionally, the over-65 school tax freeze carries over statewide if you're moving within Texas.

Are property taxes a concern in Texas?

Texas has no state income tax, but property taxes are relatively high — typically 1.5-2.5% of assessed value depending on the county. This is an ongoing HECM obligation. The over-65 school tax freeze and Homestead Exemption help reduce the burden.

How long does closing take in Texas?

HECM for Purchase in Texas typically takes 50-65 days due to the 12-day cooling-off period required by Texas law. Plan accordingly when making offers — your real estate agent should know about this timeline.