The reverse mortgage for purchase, not yet available in Texas, is receiving support of industry groups, as well as consumer groups throughout the state as Proposition 5, an amendment to the state’s constitution that would make the loan available, goes to a vote this November.
The initiative toward passing the legislation has gained support in recent months, with the Dallas Morning news most recently having endorsed Prop 5 in a statement of support through the publication.
“The measure received overwhelming support in the House and Senate and has the backing of senior citizen and real estate groups,” the outlet said in an editorial published October 2. “Voters should pass Proposition 5 and extend greater choice to older homebuyers.”
Further, the Dallas Morning News said, older Texans deserve the options available under this reverse mortgage product, especially those who are “house-rich” and “cash-poor.”
“Texas, which is the only state to prohibit reverse mortgages for home purchase, should make this commonsense change,” the editorial continues. “Older Texans, especially those who are house-rich and cash-poor, deserve the greater financial flexibility and choice that this change in the constitution would provide.
The measure has also received support from the Texas Association of Realtors, the Texas Land Title Association and the Texas Mortgage Bankers Association, as early voting approaches in two weeks in advance of the November 2 election.
AARP of Texas has also stated its support of the measure.
“AARP supports legislation authorizing reverse mortgages for purchase because it will help Texas seniors save money by combining transactions and reducing fees,” says Tim Morstad, associate state director for AARP Texas.
Written by Elizabeth Ecker
