Scottsdale Reverse Mortgage

Reverse mortgage loans help you enjoy retirement by removing monthly mortgage payments - and giving you the secure, tax-free income you can rely upon for all life’s essential purchases. Speak to a loan officer today and learn how to put your home equity to work for you.

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Our Scottsdale Reverse Mortgage Options

Our reverse mortgage brokers will help you find the right product for your financial needs.

Scottsdale Reverse Mortgage Loan Process

We provide a simple, streamlined process to help you receive home financing quickly.

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See how much you can receive to supplement retirement income through a reverse mortgage.

Scottsdale Reverse Mortgages: Secure Your Financial Future

A reverse mortgage in the Grand Canyon State helps senior homeowners save more of their hard-earned money by eliminating their mortgage expenses and providing the cash they need to live comfortably.

Benefits of a Scottsdale Reverse Mortgage

1.3 million seniors live in Arizona, renowned for its great weather, low income tax, and affordable property expenses. Scottsdale, AZ, has long been known as a retirement haven, with a quarter of the city’s population being 65 or older.

At the same time, home values have risen in the area by 5.3% in just one year, and a home purchased in 2020 is worth 41% more than at the time of purchase. This represents significant home equity that eligible borrowers can leverage through a reverse mortgage.

This city is about 13% more expensive to live in than the national average. Eligible borrowers can meet these costs through reverse mortgages, which enable homeowners to eliminate monthly mortgage payments while enjoying tax-free income.

Better yet, the funds from a reverse mortgage will not impact your eligibility for government benefits like Social Security and Medicare, so you can enhance your quality of life without affecting the benefits you rely on.

When you convert your existing home loan to a Home Equity Conversion Mortgage, you can stay in the home you love while receiving vital cash flow.

How Does a Scottsdale Reverse Mortgage Work?

Most reverse mortgages are Home Equity Conversion Mortgages (HECMs). These are insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), and are non-recourse loans. This means you cannot owe more than the home is worth.

To qualify, applicants must be over 62 and live on the property as a primary residence. You should not owe federal debt, such as student loans or unpaid taxes. If you do, it may be possible to secure funding if you pay these debts with the loan proceeds before receiving your share.

Most lenders will require at least 50% equity in the home. The maximum amount you can receive in Arizona with an FHA-insured reverse mortgage is $1,149,825. If you require more than this, you will need to seek out a proprietary reverse mortgage, also known as a jumbo reverse mortgage, which is not federally insured.

A borrower must demonstrate sufficient funds for property taxes, homeowners insurance, and home maintenance. They must also undergo mandatory counseling with a HUD-approved counselor. A list of available counselors is available on the Department of Housing and Urban Development website.

Once your reverse mortgage is approved, you can choose how you would like to receive your funds. Options are a lump sum upfront payment, regular monthly payments, or a line of credit you can use as needed. You can also combine these, such as receiving an upfront sum and then monthly installments for the rest.

You only need to repay the loan when the home changes ownership, such as if you move into a new home or pass away. In the case of inheritance, your surviving family members must either repay the mortgage or sell the property.

Why Choose Arnaiz Mortgage for Your Scottsdale Reverse Mortgage?

Our team of mortgage specialists is highly familiar with the Arizona housing market, including its fluctuations and relevant Arizona laws around reverse mortgage loans. Our goal is to ensure our clients have the best possible reverse mortgage experience.

We pride ourselves on building trust and practicing transparency in all mortgage transactions. We take the time to understand our clients and determine which financial products are viable options for their unique needs.

A mortgage specialist from our team will guide you through every step of the reverse mortgage process, including matching you to the right lender for your specific goals. To learn more about how we assist senior homeowners in building their retirement income, contact us at (623) 806-4645 or get a free, no-obligation quote today.

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Frequently asked questions about Scottsdale Reverse Mortgage

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

    To qualify, a borrower must be at least 62 years old and live in the property as their primary residence. They should not owe federal debt and have at least 50% equity in the property. For a HECM loan, they must undergo counseling with a HUD-approved financial counselor.

  • How much home equity is required for a reverse mortgage in Scottsdale?

    In general, you must have at least 50% equity. Some lenders may have slightly different percentages.

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

    Borrowers must pay the lender origination fees, which cannot exceed $6,000. They will also need to pay closing costs covering inspections, title searches, and home appraisals. Lastly, a HECM loan requires an initial mortgage insurance premium of 2%, and there will be ongoing insurance premiums throughout the life of the loan.

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

    Borrowers are still responsible for property taxes and homeowners insurance, which are generally unaffected by replacing an existing mortgage with an HECM.

  • What happens to my reverse mortgage if I move or sell my Scottsdale home?

    The homeowner must start repaying the loan if they transfer the title, whether by sale, moving out, or passing away.

  • Can I refinance my reverse mortgage?

    Yes, you can refinance a reverse mortgage. You can use refinancing to get better interest rates, change the loan amount, or add a new cosigner who recently turned 62. It’s also possible to convert a reverse mortgage into a traditional one if you want to begin making monthly mortgage payments.

  • How does the Scottsdale housing market affect reverse mortgage loan amounts?

    The money you can receive from a reverse mortgage depends on your home equity, which is based on home values. As home prices rise, so does your equity, which can provide you with more funds for retirement. Home prices in this area have dramatically increased in the past few years, with a jump of over 5% in just one year.

  • How will a reverse mortgage impact my heirs and estate in Scottsdale?

    A reverse mortgage must be repaid when the last borrower leaves the property. If you pass away with a reverse mortgage loan, the family must cover the debt or put the property up for sale. The sales price must be at least 95% of the home’s value if the house is underwater.

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

    A Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage loan, has no restrictions on how you can use the proceeds. You can also receive this money in multiple ways, such as a lump sum, monthly payments, or a line of credit.

    However, it is also possible to receive a proprietary reverse mortgage, such as a single-purpose reverse mortgage. With this option, the funds are earmarked for a specific need, such as paying off another debt or making necessary home repairs.

  • How long does the reverse mortgage process take in Scottsdale, AZ?

    In general, the reverse mortgage process takes between 30 and 45 days, though this may vary based on the size and complexity of the loan.

    This includes a mandatory cooling-off period between your counseling session and the closing appointment, which ensures you have carefully considered obtaining a reverse mortgage and understand your obligations as a borrower.

    When you work with Arnaiz Mortgage, a mortgage specialist from our team will keep you informed about the progress of your loan, providing timely updates and helping to answer any questions you may have.