Reverse mortgage loans are a popular financing option for seniors in Phoenix, Arizona that allow homeowners to tap into their home’s equity.
How Does a Reverse Mortgage Loan in Phoenix Work?
A reverse mortgage loan allows homeowners who are 62 or older to access a portion of their home’s equity without having to sell their home, give up the title or make monthly mortgage payments. Instead, the borrower must pay property charges, like taxes, insurance and home maintenance. The loan is paid back when the borrower no longer occupies the home.
The amount that can be borrowed depends on several factors, including the borrower’s age, home value, interest rates and the type of reverse mortgage loan.
Borrowers have several options for receiving the funds, including a lump sum, monthly payments, a line of credit or a combination.
Our Reverse Mortgage Loans in Phoenix, Arizona
Home Equity Conversion Mortgage (HECM)
HECMs are the most common type of reverse mortgage and are insured by the Federal Housing Administration (FHA). This provides a host of consumer protections, including a non-recourse feature that guarantees the sale of the home will cover the balance of the reverse mortgage loan, regardless of the home’s market value at the time of sale.
HECM for Purchase (H4P)
An H4P is a type of reverse mortgage specifically designed for seniors who want to purchase a new home. This can be a useful option for seniors who want to downsize, move closer to family or relocate to a more accessible home.
It can greatly increase homebuying power and enable many borrowers to move to a more expensive area than their current residence. Like a traditional HECM, the borrower does not have to make monthly mortgage payments. Instead, they only need to take care of property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loan
This type of reverse mortgage is for high-value homes that exceed the loan limit of $1,089,300 set by the FHA for HECMs. The amount of cash available is based on the appraised value of the home, and borrowers typically have more flexibility in payment options.
Phoenix Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
Reverse Mortgage Loan Eligibility in Phoenix, Arizona
About Phoenix, Arizona
Phoenix, Arizona is a vibrant desert city with a diverse cultural scene, thriving economy and an abundance of outdoor activities. With a rich history, Phoenix showcases its heritage through museums, art galleries and historical sites. The city’s culinary scene offers a delectable mix of Southwestern, Mexican and international cuisines, while its lively downtown area features entertainment venues, sports arenas and a bustling nightlife.
Phoenix for Seniors
With its hot climate and wide variety of amenities, Phoenix is a great place for senior citizens to live. First, Phoenix has an affordable cost of living when compared to many other major cities, which is great for those on a fixed income. The city also has excellent healthcare facilities, including specialized medical centers and senior care services.
Fun Facts About Phoenix, Arizona
1. Phoenix is the capital and largest city of Arizona.
2. Phoenix holds the record for being one of the hottest capital cities in the world.
3. The Desert Botanical Garden in Phoenix is home to an impressive collection of desert plants from around the globe.
4. Phoenix has a wide variety of cultural and geological attractions, including the Pueblo Grande Museum, the Tovrea Castle, the Musical Instrument Museum, Papago Park and South Mountain Park.
Interested in a Reverse Mortgage in Phoenix, Arizona?
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*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.