HECM Reverse Mortgage in Tennessee
Discover How a Home Equity Conversion Mortgage Can Help You Enjoy Retirement with Greater Financial Freedom
Local. Trusted. Committed since 1986.
If you’re a Tennessee homeowner age 62 or older, a Home Equity Conversion Mortgage (HECM) may allow you to convert a portion of your home’s equity into tax-free loan proceeds without giving up ownership of your home.
Mortgage South of Tennessee has specialized in helping homeowners understand their reverse mortgage options since we closed the first one in the state back in 1993. Our experienced team provides personalized guidance so you can make confident decisions about your financial future.
Schedule your complimentary Reverse Mortgage consultation today.
What Is a HECM Reverse Mortgage?
A Home Equity Conversion Mortgage (HECM) is the FHA-insured reverse mortgage program designed for homeowners who are at least 62 years old. Rather than making monthly mortgage payments, qualified borrowers can access a portion of their home’s equity while continuing to live in and own their home.
Loan proceeds may be used for almost any purpose, including:
- Supplementing retirement income
- Paying off an existing mortgage
- Covering healthcare expenses
- Making home improvements
- Creating an emergency financial reserve
- Help manage everyday living expenses
- Purchasing a new primary residence through a HECM for Purchase
Because every homeowner’s situation is different, we’ll help you determine whether a HECM is the right solution for your goals.
Why Tennessee Homeowners Choose a HECM
A HECM offers several unique benefits that can provide greater financial flexibility during retirement.
Eliminate Monthly Mortgage Payments
If you have an existing mortgage, a HECM can often pay it off, eliminating your required monthly principal and interest mortgage payment.*
Stay in the Home You Love
Continue living in your home while maintaining ownership and enjoying the equity you’ve built over the years.
Flexible Disbursement Options
Choose the option that best fits your financial goals:
- Lump Sum
- Monthly Payments
- Line of Credit
- Combination of Payment Options
FHA-Insured Protection
HECM loans are insured by the Federal Housing Administration (FHA) and include important borrower protections, including non-recourse features.
Who Qualifies?
You may be eligible if you:
- Are 62 years of age or older
- Own your home or have significant equity
- Live in the home as your primary residence
- Can continue paying property taxes, homeowners insurance, HOA dues, and property maintenance
- Complete HUD-approved reverse mortgage counseling
Not sure if you qualify? Our team is happy to review your situation with no obligation.
How Much Money Can I Receive?
The amount available depends on several factors, including:
- Age of the youngest borrower
- Home value
- Current interest rates
- FHA lending limits
- Existing mortgage balance
Every homeowner is different. We’ll prepare a personalized illustration showing the options available to you.
How Can HECM Funds Be Used?
There are very few restrictions on how you use your loan proceeds. Many of our clients use a reverse mortgage to:
- Increase monthly cash flow
- Delay taking Social Security or retirement investments
- Pay for medical expenses
- Renovate their home for aging in place
- Establish a growing line of credit for future needs
- Reduce financial stress during retirement
Why Choose Mortgage South of Tennessee?
For nearly four decades, Mortgage South of Tennessee has been one of the region’s trusted reverse mortgage specialists.
When you work with us, you’ll receive:
✔ Local Tennessee experts
✔ Personalized retirement lending solutions
✔ Clear, honest communication
✔ Guidance from application through closing
✔ Dedicated customer service before and after your loan closes
We believe education comes before paperwork. Our goal is to ensure you fully understand your options so you can make the decision that’s right for you.
Frequently Asked Questions
Do I still own my home?
Yes. You remain the owner of your home, just as you would with a traditional mortgage.
Will I have a monthly mortgage payment?
Generally, no monthly principal and interest mortgage payment is required as long as you continue meeting your loan obligations.*
Can I lose my home?
Borrowers must continue paying property taxes, homeowners insurance, maintain the property, and occupy it as their primary residence. Failure to meet these obligations could result in the loan becoming due.
What happens when I move or pass away?
The loan typically becomes due when the last borrower permanently leaves the home, sells the property, or passes away. The home may be sold, or heirs may choose another repayment option available under the loan terms.
Can my heirs owe more than the home’s value?
No. A HECM is a non-recourse loan, meaning neither you nor your heirs will owe more than the home’s value when the loan is repaid, provided all loan requirements have been met.
Is HUD counseling required?
Yes. Independent HUD-approved counseling is required before obtaining a HECM to ensure borrowers understand how the program works.
Ready to Learn More?
Whether you’re planning for retirement, looking to eliminate your monthly mortgage payment, or simply exploring your options, Mortgage South of Tennessee is here to help.
Contact us today for a complimentary Reverse Mortgage consultation.
Mortgage South of Tennessee
Local. Trusted. Committed since 1986.
Important Disclosure
A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage available to qualified homeowners age 62 and older. Borrowers must continue to pay property taxes, homeowners insurance, any HOA dues, maintain the home, and occupy the property as their primary residence. Failure to meet these obligations may result in the loan becoming due and payable. This information is provided for educational purposes only and should not be considered financial or tax advice.