Phoenix Reverse Mortgage

Phoenix, Arizona, seniors can eliminate monthly mortgage payments and enjoy additional retirement income through reverse mortgage loans. This specialized loan product allows you to live in your home while leveraging its equity.

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Our Phoenix Reverse Mortgage Options

Our skilled team of loan specialists can match you to a mortgage lender with products that fit your lifestyle and terms you’ll love.

Phoenix Reverse Mortgage Loan Process

We make it easier than ever to access reverse mortgage loans through our simple, streamlined process.

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Learn how you can receive from your Phoenix, AZ, home with a free, no-obligation quote, all online.

Phoenix Reverse Mortgages: Unlock Your Financial Future

Phoenix, AZ, homeowners above the age of 62 can reduce their monthly expenses and receive money for their ongoing needs through a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage. These products offer borrowers tax-free cash to use however they choose without needing to pay back the loan until they transfer ownership.

Benefits of a Phoenix Reverse Mortgage

Phoenix, AZ, is the largest city in the state and has long been known as a retiree’s paradise because it has a very low state income tax. Over 18% of the metropolitan area is above 65. At the same time, housing prices have risen by over 216% since 2000, meaning borrowers may have significant home equity.

Reverse mortgage loans allow you to tap into your equity while living in your primary residence, receiving a steady flow of tax-free income you can use to fund your lifestyle.

You’ll no longer have to worry about monthly mortgage payments, and the loan does not need to be repaid until the property transfers ownership. You can enjoy the beautiful weather in Phoenix while significantly reducing your expenses and spending more time doing what you love.

How Does a Phoenix Reverse Mortgage Work?

The most common reverse mortgage loan is the Home Equity Conversion Mortgage (HECM). The Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), insures these loans.

To qualify, a borrower must be at least 62 years old and owe no federal debt or be able to repay this debt using the money from their loan. The home being mortgaged must be their primary residence, and they should have at least 50% home equity before applying for a mortgage.

You must undergo a counseling session with a HUD-approved counselor in Phoenix, AZ. The HUD website provides a list of these counselors.

Once approved, the borrower will take out a larger loan based on the home’s current appraised value, usually no more than 60% of the value within the first year. The maximum amount you can receive with a HECM in Phoenix, AZ, is $1,149,825.

You have several options for how you receive the funds. You can get a lump sum payment upfront, monthly payments, or a line of credit you can draw down as necessary. Mixing and matching these based on your specific needs is also possible.

The homeowner only needs to repay their loan once the property changes ownership, such as if they sell the house, move into a new home, or pass away.

In an inheritance situation, the surviving family members can either pay off the loan or sell the home for at least 95% of the appraised value to satisfy the debt. It’s important to remember the 95% rule only applies if the home’s underwater.

Why Choose Arnaiz Mortgage for Your Phoenix Reverse Mortgage

Arnaiz Mortgage works with clients around the country, tailoring our services to their specific needs. We’re highly familiar with the Phoenix, AZ, housing market and can offer you helpful advice about using reverse mortgage loans.

We believe trust and transparency are the underpinnings of any successful mortgage transaction. Our goal is to provide you with the information you need to make the right decision for your situation.

Our helpful loan officers will guide you through every step of the process and answer all your questions. We’ll also help you pick the right lender so that you can get the perfect reverse mortgage.

If you have any questions about how reverse mortgage loans work, call us at (623) 806-4645 for further details. You can also get a no-obligation quote online to learn how much you can receive or apply now to get the process started.

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Frequently asked questions about Phoenix Reverse Mortgage

  • What are the eligibility requirements for a reverse mortgage in Phoenix?

    To qualify for reverse mortgage loans, homeowners must be 62 years old and owe no federal debt. The home must be their primary residence, and they should have at least 50% equity. Your home should also be in good condition.

    Additionally, you’ll have to complete a counseling session with a HUD-approved counselor and wait a brief period after your counseling to sign the paperwork.

  • How much home equity do I need to qualify for a reverse mortgage in Phoenix?

    Generally, you must have at least 50% equity in your home before receiving a reverse mortgage. Some private lenders may accept a different percentage.

  • What are the fees and closing costs associated with a Phoenix reverse mortgage?

    You must pay the lender origination fees, which are capped at $6,000 for a HECM loan. Closing costs, similar to those for other mortgages, are due at closing and cover appraisals, inspections, and title searches.

    Lastly, homeowners seeking Home Equity Conversion Mortgage products must pay an initial mortgage insurance premium of 2%, with ongoing premiums throughout the life of the loan.

  • How does a reverse mortgage affect property taxes and insurance in Phoenix?

    After receiving a reverse mortgage, you are still responsible for the property taxes and homeowners insurance. These are typically not impacted by a new loan, and the mortgage company will want to see that you can cover these expenses when you apply.

  • What happens to my reverse mortgage if I sell or move out of my Phoenix home?

    A reverse mortgage is due when the property changes ownership. Selling the home or moving into a new principal residence means you must start making monthly mortgage payments to satisfy the debt.

  • Can I refinance my existing reverse mortgage in Phoenix?

    Yes, you can refinance a reverse mortgage, such as adding a new cosigner who recently turned 62 years old. You can also seek a different interest rate or change the loan amount if necessary. In some cases, you may revert the loan to a traditional mortgage and begin making payments again.

  • How do local home values in Phoenix impact reverse mortgage loan amounts?

    When home values go up, so does the amount of equity you have in the home, and therefore, you can be approved for a larger loan. Thankfully, Phoenix has a vibrant housing market, and property values have risen in the last few years.

  • How does a reverse mortgage affect my heirs and estate in Phoenix?

    If you pass away while still owing a balance on a reverse mortgage, your heirs must pay off the loan if they want to keep the property. They can also put the home up for sale to satisfy the debt. Heirs can purchase the house for 95% of the current value if the home is underwater.

  • Are there restrictions on how I can use the funds from a reverse mortgage in Phoenix?

    Home Equity Conversion Mortgages (HECMs) do not restrict how you can use your loan proceeds. You may use them to purchase a new home as a vacation residence, pay off bills, perform home repairs, or simply enjoy your retirement more comfortably.

    If you need the loan for one specific need, you can seek a single-purpose reverse mortgage loan, which is provided by a private lender and must be used for a specific purpose. You and the mortgage company will agree on how to use the funds, and you must show you have used the funds for the intended purpose.

  • How long does the reverse mortgage process take in Phoenix?

    The reverse mortgage process generally takes about 45 days, but this is only a guideline. Your loan may take more or less time than this. If you have any questions about the timeline or need assistance, you can call us at any time to get more details about the progress of your loan application.