Protect Your Investment: Find an Experienced Mortgage Provider

As the population of seniors grows and the cost of living skyrockets it makes sense that homeowners will continue to seek ways to squeeze the cash out of their home’s equity. For many seniors this is the largest asset they have. Until recently it was useless until the home was sold. Reverse mortgages have changed all that.

Regardless of how simple you may think a reverse mortgage these products are best managed by a reputable and experienced lender.

FHA Lender Limits: How They Affect Tennessee Borrowers

FHA mortgage limits are set county-by-county and reflect the local home values. The FHA limit for your county of residence is a key factor in determining your eligibility for a federally insured Home Equity Conversion Mortgage. For the average homeowner local limits are more than sufficient for getting into a HECM. For homeowners with very high-value homes these limits may be too locally restrictive, which means they may have to explore a reverse mortgage alternative—one with higher limits or a jumbo without limits.

Tennessee FHA limits are, for the most part, reflective of the national average. Exceptions include areas surrounding the Nashville metropolitan area where house values are higher. Limits in these areas generally sit about $150,000 higher.

HUD Lenders: Find One in Your Area

HUD administers one of the most popular reverse mortgages, the HECM. Between 90- and 95% of all senior borrowers use this product despite its high closing costs. What HUD does best is ensure that homeowners and homebuyers have as much information on the overall industry as possible and the tools to make homeownership a possibility.

The HECM is just one of such programs. But HUD and its close companion, the FHA, do not extend financial services—you don’t apply to HUD for a HECM reverse mortgage. HUD provides consumers with a well-maintained list of FHA-approved lenders, searchable by state so you know exactly who and where the most experienced lenders are to be found.

Find the HUD-approved lender list on the HUD website or get it from a mortgage counselor. Never pay money to obtain this list—that’s a popular scam.

Single Purpose Reverse Mortgage Providers in Tennessee

Tennessee is one of 25 states that uses a property tax deferral program as a type of single purpose reverse mortgage. Local municipalities may grant qualified seniors (age 65 and older, limited income, title holder) a property tax deferral against the equity in their home. Like a reverse mortgage, this does not come due until transfer of the title.

Seniors in Tennessee are encouraged to ask at their town government offices for information on this type of property tax deferral. These programs are locally based and locally administered.

Types of Providers for Reverse Home Mortgages in Tennessee

Remember, reverse mortgages may be originated by a wide variety of financial institutions including banks, federal credit unions, and mortgage brokers. They may be national or regional companies. Here is a sample of the various types you may encounter.

  • Access Reverse specializes in reverse mortgages for seniors. Borrowers will not only have access to the HUD HECM, but to a variety of flexible reverse mortgage options.
  • Mortgage South of Tennessee is a locally owned mortgage company that is experienced in both forward mortgages as well as reverse. The company offers a Senior Advantage Reverse Mortgage and is HUD-approved.
  • Wells Fargo is a nationwide institution best known for its commercial products and services. But its Home Mortgage division has grown and now offers locations in many states including Tennessee. WF offers two reverse mortgage products: the HUD HECM and the Fannie Mae Home Keeper.