Are you a homeowner over the age of 62 and looking for stable retirement income? Is it difficult for you to stay in your home, given your expenses? If so, a Home Equity Conversion Mortgage (HECM) might be a great option, if you own your home outright or have a low mortgage balance.

We are here to help senior homeowners make informed financial decisions. Woodbine Community Organization’s HUD-approved counselors work hard to make sure you know all your options and make the best choice based on your situation and goals.

How HECMs Work

The Federal Housing Administration-insured mortgage enables seniors over the age of 62 to convert home equity into cash. The cash amount varies, based on the appraised value of the home and the age of the homeowner, but does not require a credit check. Individuals that are delinquent on federal debt, however, are not eligible.

Interest accrues on the loan balance, but no payments are needed until the death of the lendee, at which point the loan must be repaid. Because the FHA insures HECM loans, the borrower will not owe more than value of the loan in the event that the loan exceeds the value of the home's equity. The homeowner can sell at any time, and receive the difference between the sale value and the loan amount.  

Making Informed Mortgage Decisions

Obtaining a reverse mortgage is a very complicated and complex alternative to selling your home. Woodbine Community Organization counselors are trained in HECM and will help you make informed financial decisions and better understand the available options, helping meet your financial goals.

Our HECM counselors will help you understand:

• Who owns the home with a HECM

• If your heirs can keep the house

• If you can purchase a home with a HECM

• If borrowers can change lenders

Did you know before a lender does anything that results in a charge to you, a counseling session is required? There is a fee for our financial counseling services, but it can sometimes be waived.

Woodbine is Here to Help

We are dedicated to community economic development and provide services that aren’t typically available from traditional financial institutions. As an organization committed to community revitalization, we provide a suite of services to benefit the mid-Tennessee community and beyond, including financial counseling, community programs, rental housing, and homebuyer and homeowner services.

Interested in securing retirement income with an HECM? Call us today at 615-833-9580 to help you get started.