Texas is the only state in the U.S. that doesn't allow people over the age of 62 the buy a new home with a reverse mortgage. A proposition on next month's ballot would change that if voters approve it.
A reverse mortgage allows homeowners to borrow money against the value of the home, taking either a lump sum or monthly payments.
Proposition 5, on the November state ballot, would allow a homeowner to use equity in their current home to make a down payment on a new home. Paying about half of costs out of pocket and then using a reverse mortgage loan to pay the difference without having to sell the current home first.
A reverse mortgage can be expensive with up-front fees and interest rates when compared to other types of mortgages.
Supporters of Proposition 5 say if voters vote yes, this could be the way to a new home.
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