Reverse Mortgage Loans

Helping homeowners nationwide access reverse mortgage solutions, backed by a Dallas–Fort Worth team you can trust

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What is a Reverse Mortgage?

A reverse mortgage is a type of home loan that allows eligible homeowners to convert a portion of their home equity into cash. Unlike a traditional mortgage, you do not make monthly principal and interest payments. Instead, the loan balance grows over time and is repaid when the home is sold, the borrower permanently leaves the home, or the borrower passes away.

The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration and regulated by the U.S. Department of Housing and Urban Development (HUD).

For homeowners 62 and older, a reverse mortgage can be a powerful tool for accessing the equity you’ve built over decades without selling your home or taking on a monthly mortgage payment.

At Novus Texas, we help seniors and their families understand how reverse mortgages work, whether they’re the right fit, and how to structure them responsibly.

Ways to Receive Your Reverse Mortgage Funds

Lump Sum

Receive all available funds at closing. Available only with fixed-rate HECMs. Best for borrowers with a specific large need, such as paying off an existing mortgage, covering medical expenses, or funding a major home improvement.

Line of Credit

Access funds as needed, up to your available limit. The unused portion of a HECM line of credit actually grows over time, making it a potentially valuable financial planning tool. This is the most popular option.

Monthly Payments

Receive fixed monthly disbursements either for a set number of years (term payments) or for as long as you live in the home (tenure payments). Provides predictable supplemental income.

Combination

Many borrowers choose a combination of the above, for example, a lump sum to pay off an existing mortgage, plus a line of credit for future expenses. 

Reverse Mortgages in the Dallas–Fort Worth Context

DFW homeowners who purchased decades ago have often seen significant appreciation in their property values. Many seniors in established neighborhoods throughout Dallas, Fort Worth, Arlington, Garland, and Plano are sitting on substantial equity that a reverse mortgage can help them access without disrupting the lifestyle and home they’ve built.

A reverse mortgage can help fund healthcare costs, home modifications for aging in place, retirement income gaps, or simply improve quality of life by eliminating a monthly mortgage payment.

How Does a Reverse Mortgage Work?

You retain title to your home and continue living in it as your primary residence

The lender pays you either as a lump sum, a line of credit, monthly payments, or a crossbreed

No monthly mortgage payments are required (you remain responsible for property taxes, homeowners' insurance, and maintenance)

The loan balance grows over time as interest accrues

The loan becomes due when you sell the home, move out permanently, or pass away

If the home sells for more than the loan balance, the remaining equity goes to you or your heirs

HECM loans are non-recourse; you (or your heirs) will never owe more than the home's value

Reverse Mortgage Requirements

*Requirements subject to change

Age: All borrowers on the title must be at least 62 years old

Primary Residence: The home must be your primary residence

Equity: You must have substantial equity in the home (typically 50%+, though this varies)

Property Types: Single-family homes, FHA-approved condos, and manufactured homes meeting HUD standards

Financial Assessment: Lenders review your income, credit, and expenses to confirm you can maintain the home (property taxes, insurance)

HUD Counseling: All borrowers must complete a HUD-approved reverse mortgage counseling session before proceeding

Important Considerations

Reverse mortgages are not right for everyone, and we believe in helping our clients understand the full picture before making any decisions:

  • The loan balance grows over time if you plan to leave your home to heirs with full equity, a reverse mortgage reduces what they will inherit
  • You must continue paying property taxes, homeowners’ insurance, and maintain the property; failure to do so can trigger default
  • Closing costs and fees are typically higher than those of conventional loans
  • Reverse mortgages are not a solution for short-term financial needs; they are a long-term planning tool
  • HUD-approved counseling is required and is an important part of the process

Our team of Loan Officers serves buyers across DFW, including Dallas, Fort Worth, Frisco, Plano, McKinney, Allen, Arlington, Irving, Garland, and Denton. We are local professionals who know this market, lending in all 50 states to serve you where you need a mortgage loan. 

Novus Home Mortgage and Finance of America: More Ways to Help DFW Seniors

The reverse mortgage industry is evolving, and at Novus Texas, we are evolving with it. We are proud to work with Finance of America (FOA), now the nation’s leading reverse mortgage lender, to bring DFW homeowners access to some of the most innovative home equity solutions available today.

If you have been following mortgage industry news, you may have seen that Finance of America recently acquired the reverse mortgage portfolio and operations of PHH/Liberty Reverse Mortgage, one of the largest consolidations in the reverse mortgage space in years. The result is a stronger, more expansive Finance of America that now holds a top-ranked position in HECM originations and proprietary reverse products nationwide.

For Novus Texas clients, this means access to FOA’s full suite of reverse mortgage solutions through our team, the local loan officers you already know, backed by the depth and scale of the industry’s premier reverse mortgage provider.

Finance of America offers one of the most comprehensive reverse mortgage product menus in the industry, including:

  • FHA-insured Home Equity Conversion Mortgages (HECMs): The most widely used reverse mortgage, available to homeowners 62 and older
  • HomeSafe Standard: A proprietary jumbo reverse mortgage for up to $4 million, available to borrowers as young as 55, with no mortgage insurance premiums or origination fees
  • HomeSafe Second: A second-lien reverse mortgage of up to $1 million that leaves your existing first mortgage intact, available to homeowners 55 and older
  • HomeSafe Second Line of Credit: A first-of-its-kind second-lien reverse mortgage line of credit, allowing homeowners 55+ to draw funds over time without monthly payments or refinancing their existing rate
  • HECM for Purchase: Use reverse mortgage proceeds to buy a new primary residence without taking on monthly mortgage payments

This range of products means that whether your home is valued at $400,000 or $4 million, and whether you want a lump sum, a monthly income stream, or a flexible line of credit, there is likely a Finance of America solution worth exploring. 

What This Means for You

Rather than navigating the reverse mortgage market on your own, you can work directly with the Novus Texas team, local loan officers with deep DFW roots, who can walk you through FOA’s product options and help you determine what, if anything, makes sense for your situation.

We handle the complexity so you do not have to.

FREQUENTLY ASKED QUESTIONS

Will the bank own my home if I get a reverse mortgage?

No. You retain title to your home throughout the life of the reverse mortgage. The lender holds a lien on the property just as they would with any mortgage but you remain the owner.

What happens to the home when I pass away?

Your heirs generally have several options when a HECM loan becomes due and payable. They may choose to sell the home and use the sale proceeds to satisfy the loan balance, retaining any remaining equity. They may also be able to keep the home by paying off the loan balance, often through refinancing or other available funds. Because HECM loans are non-recourse, neither the borrower nor the heirs will owe more than the home’s value at the time the loan is repaid, provided all program requirements are met.

Can I get a reverse mortgage if I still have a regular mortgage?

Yes. You do not need to have your home paid off to qualify. However, any existing mortgage must generally be paid off at closing, often using proceeds from the reverse mortgage itself.

Are reverse mortgages taxable?

Generally, reverse mortgage proceeds are not considered taxable income. However, tax implications can vary based on individual circumstances. We recommend consulting a tax advisor as part of your planning process.

Novus Texas is a regional team of Novus Home Mortgage, a division of Ixonia Bank, serving the Dallas–Fort Worth area and clients nationwide. Based in Dallas, the team provides residential mortgage solutions, including conventional, FHA, VA, renovation, and investment property financing. The team is led by experienced mortgage professionals Shawn Fehily and Marcus Lepp, bringing over 25 years of combined industry experience.

Established in 2019, Novus Home Mortgage originates loans in all 50 states and is committed to a simpler, more transparent mortgage process. Novus Home Mortgage is a division of Ixonia Bank. NMLS #423065. Member FDIC. Equal Housing Lender.