Finance
In Texas, a 'reverse mortgage' allows elderly homeowners (typically 62+) to:
ASell their home and rent it back from the buyer
BReceive payments from the lender using their home equity, with the loan repaid when the homeowner sells, moves, or dies✓ Correct
CTransfer their mortgage to a family member
DPay off their existing mortgage with a government grant
Explanation
A reverse mortgage (Home Equity Conversion Mortgage - HECM) allows qualifying homeowners (62+) to convert home equity into tax-free income without selling. The loan balance grows over time and is repaid from the home's proceeds when the owner sells, moves out permanently, or dies. Texas has specific provisions for reverse mortgages under Article XVI Section 50.
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