Reverse mortgages are becoming increasingly popular in Arizona and across the United States. As the baby boomer generation reaches the age of eligibility, more and more homeowners are taking advantage of this type of mortgage loan. Reverse mortgages allow homeowners aged 62 and older to tap into their home equity without the need to make monthly mortgage payments.
In Arizona, it is estimated that 14% of the population is over the age of 62, making them eligible for a reverse mortgage. The funds obtained through a reverse mortgage have no restrictions on how they can be used and the loan does not need to be repaid until the borrower sells their home, permanently moves out, or passes away.
Be 62 years of age or older
Use the home as their primary residence
Keep current on property taxes and insurance payments
Maintain the home in a good condition
If one spouse is 62 years old or older and the other is not, the older spouse may still be eligible to apply for a reverse mortgage in their name alone. The non-borrowing spouse, who is under the age of 62, will need to sign a disclaimer deed at the time of closing. The non-borrowing spouse is not a party to the loan, and will not be listed on the note or the deed.
Home Equity Conversion Mortgages (HECM) require the borrower to be at least 62 years old. If a spouse is under the age of 62, they can still be added to the HECM as an eligible non-borrowing spouse. However, it's worth noting that roughly six (6) reverse mortgage lenders that are not affiliated with the HECM program may have a lower age requirement, such as 45.
Obtaining reverse mortgages in AZ is a process that involves several steps. To qualify for a reverse mortgage in AZ, you must be at least 62 years old. Reverse mortgages in AZ allow you to access a portion of your home equity without having to make monthly mortgage payments. The money you receive from reverse mortgages in AZ can be used for any purpose and the loan does not need to be repaid until you sell your home, permanently move out, or pass away.
Step 1. The first step to get a reverse mortgage in AZ is to click the Apply Button on this page, or contact us, to find out for how much you qualify. We can answer any questions you have about reverse mortgages in AZ and help you get started.
Step 2. You will need to complete HUD-approved counseling, which is a requirement for reverse mortgages in AZ. We will provide you with a list of approved Arizona HUD counseling agencies and you can make an appointment with a counselor. The counseling can be done in-person or over the phone.
Step 3. Once you complete the counseling and have the certification ready, you can then schedule a loan application appointment either over the phone, in person or through a Zoom or digital meeting.
Documentation Requirements for a Reverse Mortgage in Az:
Speak with one of our professionals today and learn how you take advantage of reverse mortgages in Az.
How do I qualify for a Reverse Mortgage Loan?
If you own your home and are 62 years of age or older you might be eligible to apply for a reverse mortgage loan. The home you are thinking of taking the reverse mortgage loan out on must be your primary residence. There are some conditions to what type of home may qualify.
We can help you figure out if you’re eligible for a reverse mortgage loan. Call us today!
When you have a reverse mortgage, it's important to keep up with certain responsibilities:
All of these responsibilities are important to maintain the reverse mortgage loan and keep it in good standing.
When you have a reverse mortgage loan, repayment is not required as long as you continue to live in the home as your primary residence, maintain the home, and stay current on property-related expenses. However, if you choose to move out of the home, sell the property, or if the last surviving borrower passes away, the loan will become due and will have to be paid off. It is important to note that, by the terms of the loan, the loan amount and interest should be paid off with the sale of the home or from other assets of the borrower or heirs.
The cost of a reverse mortgage loan will vary depending on the type of loan and the lender you choose. It is generally more expensive than traditional home loans.
With a reverse mortgage loan, you will be responsible for repaying the borrowed funds plus any interest and fees incurred. In contrast to traditional mortgages, the amount you owe on a reverse mortgage loan will increase over time, as the interest and fees accumulate on top of the borrowed amount.
Similar to traditional mortgages, borrowers of reverse mortgages will typically have to pay one-time upfront costs at the beginning of the loan. These costs can include:
You have the option to pay these costs in cash or to include them in the loan proceeds, reducing the amount of loan proceeds you'll have available. But it’s important to evaluate the costs versus benefits of each option.
With a reverse mortgage, ongoing costs are added to your loan balance every month. This means that each month you are charged interest and fees on top of the interest and fees that were added to your previous month’s loan balance. Ongoing costs may include:
It's worth noting that the larger your loan balance and the longer you keep your loan, the more you will be charged in ongoing costs. To minimize these costs, it's best to borrow only as much as you need. Note that this information applies only to Home Equity Conversion Mortgages (HECMs), which is the most common type of reverse mortgage loan.