Loan Program
Reverse mortgages have a reputation problem, some of it earned decades ago and most of it now out of date. Tyler has spent a large part of a twenty-year career on these, which is unusual — most originators avoid them. They are the right answer for a specific person, and the wrong answer for plenty of others. You deserve to be told which you are.
A HECM — the federally insured reverse mortgage — pays you rather than the other way round. You can take it as a lump sum, a line of credit, monthly payments, or a combination. The balance grows over time instead of shrinking, and it becomes due when the last borrower permanently leaves the home.
Title stays in your name. What you must continue to do is pay property taxes and homeowners insurance and keep the home maintained. Failing on those is the single most common way a reverse mortgage goes wrong, and it is entirely avoidable if someone explains it properly at the start.
Neither you nor your heirs can ever owe more than the home is worth when it is sold — that is what the federal insurance covers. Independent counselling from a HUD-approved agency is required before you can proceed, which is a consumer protection worth taking seriously rather than treating as a formality.
A reverse mortgage reduces what you leave behind. If passing the house to your children matters more than your monthly cash flow, this is likely the wrong product and we will say so. Closing costs are higher than a conventional refinance. And if you are likely to move within a few years, the costs will not have earned themselves back. It is a long-horizon decision, and it deserves a family conversation rather than a sales pitch.
No. You keep title. The loan comes due when the last borrower permanently leaves the home, and it is non-recourse, so neither you nor your heirs can owe more than the home's value.
They can repay the balance and keep the home, or sell it and keep whatever equity remains after the loan is paid. If the balance exceeds the value, the federal insurance covers the difference.
62 for a HECM. Some proprietary reverse products go slightly younger.
Tyler McCain is based in Lebanon, TN and works across the Nashville metro.
Tyler McCain is licensed in Alabama, Florida, Kentucky, Ohio, Tennessee and Texas. Programme rules are federal, but the markets are not.
Tap equity without touching the first-mortgage rate you already have.
Read more →Lower the rate, drop the mortgage insurance, or pull cash out.
Read more →As little as 3% down, with mortgage insurance that comes off.
Read more →Low down payments, gift funds and every assistance option you qualify for.
Read more →That depends on numbers we have not seen yet. Two minutes, no credit pull, and Tyler will tell you straight — including if the answer is a different programme entirely.
