Tucson Reverse Mortgage

Arizona senior homeowners can make their retirement dreams come true by obtaining reverse mortgages, which offer both financial flexibility and significant savings.

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Our Tucson Reverse Mortgage Options

A reverse mortgage specialist from our team can match you to a trusted lender that meets your specific needs.

Tucson Reverse Mortgage Loan Process

We will guide you through the process of applying for reverse mortgage loans, answer your questions, and provide helpful advice.

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Learn how much you can afford with these specialized financial products, made to help seniors enjoy retirement even more.

Tucson Reverse Mortgages: Secure Your Financial Future

Instead of making a monthly mortgage payment, let your lender pay you with reverse mortgages. These unique products give you tax-free cash for retirement while letting you remain in the home you love.

Benefits of a Tucson Reverse Mortgage

Tucson, AZ, is an incredibly popular place for retirees. Thanks to a low, flat state income tax, almost 119,000 older adults live in the metropolitan area.

At the same time, Tucson home prices have been rising significantly—37% since 2020 alone. This represents untapped wealth for seniors, who can improve their quality of life in retirement without moving by using reverse mortgages.

A reverse mortgage eliminates monthly mortgage payments while providing tax-free income. You can choose how you want to receive your funds, making it a very flexible option for retirees. Better yet, borrowers do not need to repay the loan until they sell, move, or pass away.

Whether you want to fund a vacation home purchase, make necessary home improvements, cover other debts, or simply enjoy regular monthly payments to enhance your cash flow, reverse mortgages give you financial freedom on your terms.

How Does a Tucson Reverse Mortgage Work?

The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM). These are insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). These are non-recourse loans, meaning you cannot owe more than the home value.

To qualify for a reverse mortgage, you must be over 62 and live in the property as your primary residence. The home must be in good repair, and you must be able to keep up with home maintenance, homeowners insurance, and property taxes.

You should also not owe any federal debt, like student loans or unpaid taxes. If you do owe federal debt, getting a reverse mortgage loan may be possible, but you must satisfy this debt with your loan proceeds before receiving other funds. You will also need to undergo mandatory counseling with a HUD-approved financial advisor. HUD has a list of these on its website.

The amount you can receive with reverse mortgages is based on your home’s appraised value. The reverse mortgage lender will provide a new loan that covers the cost of the house, and you will receive a portion of the home equity as payment.

With a Tuscon, AZ, HECM, the maximum amount you can receive is $1,149,825. If you would like more than this, you will need to seek a jumbo reverse mortgage from a private lender that is not insured by the FHA.

Homeowners can choose how to receive their money from a reverse mortgage loan. You can select from a lump sum, monthly payments, or a line of credit you can draw down from as necessary. You can also choose a mixture of these, such as an upfront advance and regular installments.

Repayment of a reverse mortgage only begins when the home transfers ownership. This means the loan becomes due if you sell the property, move, or pass away. In the case of inheritance, your family can either cover the balance or put the home up for sale at 95% of its market value if it’s underwater.

Why Choose Arnaiz Mortgage for Your Tucson Reverse Mortgage

With our extensive understanding of the Tuscon, AZ, market, our team of mortgage professionals offers a streamlined process for receiving the funds you need. We match clients to a trusted reverse mortgage lender for their needs, taking the time to understand their financial goals.

We believe trust and transparency are paramount to a good mortgage experience, so we remain in constant contact with our clients throughout the qualification, application, and approval stages. You can always ask us any questions you may have. We work for you and want to ensure you’re satisfied with all aspects of your new loan.

To see how much income your home can provide, contact an experienced loan officer at (623) 806-4645. To see how much you qualify for, apply online within minutes or get a free, no-obligation quote about your potential mortgage. We look forward to helping you achieve your financial dreams.

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Frequently asked questions about Tucson Reverse Mortgage

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

    To qualify for a reverse mortgage in Tucson, Arizona, a borrower must be 62 or older and live in the home as a primary residence. They should also have at least 50% home equity and not owe any federal debt or be able to pay all of it off using the loan funds.

    Lastly, borrowers seeking HECM loans need to complete a financial counseling course with an approved counselor to ensure that they understand their obligations.

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

    To get a reverse mortgage loan, you must have at least 50% home equity. Some private companies may accept different percentages.

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

    There are three categories of expenses for a reverse mortgage loan. The first is origination fees, which are paid to the lender and cover the costs of obtaining the loan. For HECM loans, these are capped at $6,000.

    You must also pay closing costs like home inspections, appraisals, and title searches. Finally, HECM products require an initial mortgage insurance premium of 2% of the total loan, with an annual premium paid throughout the life of the loan.

  • How does a reverse mortgage impact property taxes and homeowner’s insurance in Tucson?

    You must continue to pay taxes and homeowners insurance with reverse mortgages. These are generally not impacted by obtaining a new loan. Lenders will want to see that you have enough money to meet these costs.

  • What happens if I sell or move out of my home in Tucson with a reverse mortgage?

    A reverse mortgage loan will come due if the property changes ownership, including selling or moving out of the home. In this case, you must begin making monthly mortgage payments again.

  • Can I refinance my reverse mortgage in Tucson?

    Yes, it is possible to refinance Arizona reverse mortgages. You can add a new cosigner who was not eligible when you first applied for the loan, change the interest rate or loan amount, or revert the loan to a traditional mortgage and begin making payments again.

  • How do home values in Tucson affect the amount I can borrow with a reverse mortgage?

    Higher home values mean you have more equity, allowing you to receive more funding from your home. Thankfully, home values in Tuscon have risen steadily throughout the decades, representing a significant potential windfall for older property owners.

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

    The loan will become due any time the property transfers ownership, which means that if you pass away, your family must cover the rest of the loan amount. They can either pay the mortgage off to keep the house or sell it for at least 95% of its market value if it’s underwater. Heirs can sell the property for their preferred price if it has equity.

  • Are there restrictions on how I can use the money from a Tucson, AZ, reverse mortgage?

    A Home Equity Conversion Mortgage does not restrict how you can use the proceeds, meaning you can leverage this financing however you choose. If you need the money for one purpose, you can seek a proprietary reverse mortgage such as a single-purpose loan.

    In this instance, you and the mortgage company will decide what to use the loan for, whether to pay medical bills or cover the purchase of a new property. You will then demonstrate that you have applied the funds toward this particular need.

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

    As a general rule of thumb, it takes about 30-45 days from start to finish. However, your timeline may vary depending on a few factors, including the cooldown period between your counseling session and the loan funding. We will keep you updated throughout the process and alert you to any potential delays so that you clearly understand when the loan will be closed.