Reverse mortgages are a popular financing option for seniors in Prescott, Arizona that allow homeowners to convert a portion of their home’s equity into cash. As the money is from loan proceeds, as opposed to income, it’s tax-free.*
How Does a Reverse Mortgage Loan Work?
Reverse mortgage loans allow homeowners who are 62 or older to access a portion of the equity in their home without having to make monthly mortgage payments. Instead, the borrower only has to pay property charges like insurance, taxes and home maintenance costs.
Reverse mortgages are a great option for seniors in Prescott, Arizona, who want to stay in their homes, but also want additional cash flow. The funds from a reverse mortgage can be used for nearly any purpose the borrower has in mind, including home improvements, medical expenses or simply having more fun in retirement.
Our Reverse Mortgage Loans in Prescott, Arizona
Home Equity Conversion Mortgage (HECM)
This is the most common type of reverse mortgage loan and is insured by the Federal Housing Administration (FHA). The amount of cash available depends on several factors, including the borrower’s age, the home’s value and interest rates.
HECM for Purchase (H4P)
This type of reverse mortgage loan is for purchasing a new primary residence. It can significantly increase homebuying power and enable borrowers to move somewhere more expensive without having to drain their nest egg. Like a traditional HECM, the borrower does not need to make monthly mortgage payments, so long as they pay property charges like taxes, insurance and upkeep costs.
Jumbo Reverse Mortgage Loan
This type of reverse mortgage is for high-value homes that exceed the HECM loan limit of $1,089,300 set by the FHA. Jumbo reverse mortgage loans are a proprietary product not insured by the FHA, so the terms and conditions can vary depending on the lender. The amount of cash available is based on the appraised value of the home, and borrowers typically have more flexibility in payment options.
Prescott, AZ Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
Here Are Considerations for Reverse Mortgage Eligibility in Prescott, Arizona
About Prescott, Arizona
Prescott is located in central Arizona and is surrounded by the Bradshaw Mountains and Ponderosa pine forests. Known as “Everybody’s Hometown,” Prescott has a warm and friendly atmosphere and a rich cultural heritage. With its iconic Whiskey Row in downtown, scenic trials and overlooks, Prescott has something for everyone.
Prescott for Seniors and Retirees
Prescott offers a range of senior-friendly amenities, parks, nature trails and healthcare services. Coupled with its affordable cost of living, relaxed pace of life, relatively mild climate and beautiful landscapes, Prescott is a great place for retirees to enjoy their golden years.
Fun Facts About Prescott, Arizona
1. Prescott was the original capital of the Arizona Territory from 1864 to 1867.
2. Prescott is known for being such a friendly and welcoming place that its nickname is “Everybody’s Hometown.”
3. Prescott is home to the “World’s Oldest Rodeo,” which began in 1888.
4. The Prescott area is home to unique and famous outdoor spaces, most notably the Granite Dells and Thumb Butte.
Interested in a Reverse Mortgage in Prescott, Arizona?
Fill out the form and Rob or a member of the Kanyur Team will be in touch!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.
**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.