Reverse mortgage loans are a popular financing option for seniors in Scottsdale, Arizona, that allow 62 and older homeowners to tap into their home’s equity for increased cash flow in their golden years.
How Does a Reverse Mortgage Loan in Scottsdale 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 Scottsdale, Arizona
Home Equity Conversion Mortgage (HECM)
Insured by the Federal Housing Administration (FHA), the Home Equity Conversion Mortgage (HECM) is the most prevalent type of reverse mortgage. The FHA guarantees that if the balance on the loan exceeds the home’s value when it’s sold, the borrower or the heirs will not be responsible for the difference (the FHA will pay it).** This can offer great peace of mind to people who worry about passing on debt to their loved ones.
HECM for Purchase (H4P)
Designed explicitly for seniors who wish to buy a new home, the HECM for Purchase (H4P) enables borrowers to use it for purchasing a new primary residence. The H4P can greatly increase homebuying power, sometimes up to 200%. This can enable seniors to move to more expensive areas or homes without having to drain their savings and start a new mortgage. Like a traditional HECM, there are no obligatory monthly mortgage payments, leaving the borrower to handle property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loan
Jumbo reverse mortgages are intended for homes with high values that surpass the FHA’s HECM loan limit of $1,089,300. The amount of cash available is calculated based on the home’s assessed value, and borrowers generally have more payment alternatives to choose from than with HECMs. Note that jumbo reverse mortgage loans are not standardized and FHA-insured, which means terms and conditions can vary from lender to lender.
Scottsdale Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
Reverse Mortgage Loan Eligibility in Scottsdale, Arizona
About Scottsdale, Arizona
Scottsdale, Arizona, is a vibrant desert city located northeast of Phoenix in Maricopa County. With a thriving arts and cultural scene, renowned resorts, a historic downtown and scenic outdoor areas, Scottsdale has something for everyone.
Scottsdale, Arizona, for Seniors and Retirees
Scottsdale’s warm climate, access to nature, recreational and cultural opportunities make it an active and attractive location for seniors. Scottsdale also offers a host of amenities for older adults, including social programs, senior-friendly transportation and an excellent healthcare system.
Fun Facts About Scottsdale, Arizona
1. Scottsdale is home to numerous art galleries, museums, and public art installations, including the Scottsdale Museum of Contemporary Art.
2. Scottsdale’s Old Town is the historic heart of the city and offers a unique blend of Western heritage and modern luxury.
3. Scottsdale’s annual Barrett-Jackson Collector Car Auction attracts car enthusiasts from around the world.
4. Scottsdale hosts two major league baseball teams for their pre-season preparations.
Interested in a Reverse Mortgage Loan in Scottsdale, 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. **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.