Who should be able to buy a home with a reverse mortgage? - Dallas News | myFOXdfw.com

Who should be able to buy a home with a reverse mortgage?

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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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