Recent consultation records reveal a striking statistic. A significant number of inquiries in the Memphis area begin with the question, "My spouse's name is the only one on the house documents; can I still apply?" In fact, a woman who requested a consultation last month asked whether she could qualify for a reverse mortgage after her husband passed away, leaving the house title solely in his name, and she is over 62 years old.

Before answering this question, let's clarify the basic structure. A reverse mortgage is a product that allows homeowners aged 62 and older to borrow against the equity of their home. Unlike a traditional mortgage, which requires monthly payments, funds can be received from the lender in a lump sum, monthly payments, or a line of credit. The principal and interest are settled when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The most common product is the HECM, which is insured by the FHA and is the only type of reverse mortgage backed by the federal government. If the title has been transferred to the individual after the spouse's death through the inheritance process, they can typically review their eligibility to apply in their own name. However, if the inheritance process is not complete or there are co-heirs, it may be necessary to resolve the title beforehand, so this should be confirmed with a HUD-approved counselor based on individual circumstances.

Looking at the housing market in Memphis in numbers, the average home value according to Zillow is $146,746, which has decreased by 3.0% over the past year (as of June 30, 2026). The median sale price according to Redfin is around $210,000, which has actually increased by 8.7%. The significant difference between these two figures is due to the different methods of calculation: average estimated value versus actual transaction price. When assessing the available equity, these differences should be taken into account.

Property tax figures are also worth noting. The tax rate in Shelby County for 2026 is $2.702382 per $100, and the combined rate for the city, county, and school district is about $7.12 per $100. When converted to an effective tax rate based on market value, it is approximately 1.78%, and with additional special district assessments, it can exceed 2.5% depending on the area. This number clearly indicates that even with a reverse mortgage, the obligation to pay property taxes remains, and one must pass a financial capability assessment to determine if they can manage this obligation.

When looking at the cost structure in numbers, the origination fee, initial mortgage insurance premium of about 2%, additional insurance premium of around 0.5% per year, and closing costs combined result in higher initial costs compared to a traditional mortgage. The advantage is that one can secure cash flow without monthly repayment burdens, and because it is a non-recourse loan structure, heirs are not required to pay any excess if the home value falls below the loan balance. However, over time, the equity in the home decreases, reducing the assets that can be passed on to children, and if property taxes or insurance premiums cannot continue to be paid, the risk of default becomes significant, even if it is not expressed in numbers.

One more number to consider is that the interest on a reverse mortgage accumulates on the loan balance each month. Even if the initial loan balance is not large, it can grow significantly over 10 or 20 years. This means that the remaining equity decreases. After the owner's death, heirs can choose to settle by selling the home, directly purchasing it at the lower of 95% of the appraised value or the loan balance, or transferring the home. In either case, decisions must be made within a specified timeframe, so it is advisable to share these numbers with family in advance.

In Tennessee, 17.7% of the population is aged 65 and older (as of 2024). Between 2020 and 2024, the population in this age group increased by 12.5%. As the retirement population grows rapidly in the area, inquiries about reverse mortgages are also increasing, but it is equally important to note that related scams targeting the elderly have been reported. HECM requires mandatory counseling from a HUD-approved counseling agency before applying. It is advisable to confirm whether the situation truly fits and to discuss it thoroughly with family before making a decision. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before entering into any contracts.