With its hub of renowned healthcare facilities, Nashville is becoming one of the top places to retire in the country. However, as retirement nears, you may be concerned about the state of your financial affairs and consider a reverse mortgage loan. ConsumerAffairs reviewed the best reverse mortgage lenders in Nashville to help improve your financial security.
How to choose a reverse mortgage lender in Nashville
Nashville is rapidly becoming a top destination for retirees. Those who are interested in retiring are settling down in popular neighborhoods such as Forest Hills, Belle Meade and Brentwood.
As they approach retirement, many seniors consider a reverse mortgage to supplement their retirement income, pay bills or cash in from the rising value of their house. Given trends of rising home values in Nashville (8.2% from 2017 to 2018) and statewide growth in home equity ($11,000 increase in 2017) a reverse mortgage can have beneficial effects for senior homeowners.
Reverse mortgages are offered to Nashville residents 62 and over who either own their home or have a minimal amount left to pay on their mortgage. This option allows you to borrow against the equity you have on your current home. So long as your home is your primary residence and you pay property taxes, as well as insurance, you will not have to repay the loan principal or interest.
Once you sell your home or no longer occupy it, the cash and interest must be repaid. Once the initial loan is paid off, the remaining equity in your home can be passed down to your children or heirs.
As in most states, reverse mortgage lenders in Nashville consider the following factors when determining the maximum amount that can be borrowed:
The age of the youngest borrower at the time of the loan
The appraised value of the home
Current home loan interest rates in Nashville
In addition, to qualify for a reverse mortgage in Nashville, recipients must meet the following criteria:
Homeowners must be a minimum of 62 years old.
Homeowners must reside in the property as their primary residence.
The property must meet minimum Federal Housing Administration standards.
The property must be either a single-family home or a 2-4 unit property, FHA-approved condo or townhome.
Homeowners cannot be neglectful on any outstanding federal debt.
Homeowners must complete Department of Housing and Urban Development-approved counseling.
Reverse mortgage options include Home Equity Conversion Mortgages (HECM) and Proprietary Reverse Mortgages. Meeting with a reverse mortgage lender in Nashville will help you determine which type of loan is right for you. Choose from the list of companies below.
This top-ranking reverse mortgage lender makes it a priority to earn and keep your trust. Finance of America Reverse has plenty to offer: lump sum, tenure payment and line of credit options; an average closing time of 30 days; and award-winning customer service. According to customers in Nashville, if you’re unsure of what something means, the team at FAR will go out of their way to explain it to you.
As one of the country’s largest reverse mortgage providers, Liberty Home Equity Solutions has worked with more than 50,000 seniors since 2003, and all of that experience has led to their reputation as industry experts. Offering HECMs and a promise to match or beat all competitors, this lender is an industry favorite. Customers say they love the responsiveness and personal attention provided by Liberty Home Equity Solutions representatives.
This award-winning company prides itself on a 97 percent customer satisfaction rating from in-house surveys. American Advisors Group offers HECMs and an expert staff to assist with the process every step of the way. Customers say that although sometimes the process takes longer than they had hoped, it works out in the end and is well worth the wait.