What is a reverse mortgage? A reverse mortgage is a loan that enables a person 62 or older to access the equity in their home and not make a payment on the loan as long as they reside in the property. A borrower will be responsible for paying the taxes and insurance on the home and keeping the property maintained. The borrower retains title to the property and can use the loan in any way they want. Unlike a traditional loan where the balance decreases, on a reverse mortgage the balance increases over time. The most common reverse mortgage is insured by FHA and has been available since 1989, it is known as a Home Equity Conversion Mortgage (HECM) What is the Reverse Mortgage for Purchase program? In November 2013, Texas voters approved the use of Reverse Mortgages to purchase a home. This new law will provide a new financing option for seniors that are looking to “right-size” or relocate and don’t want to have a mortgage payment on their home purchase.