Colorado Springs Reverse Mortgage

Put your home to work! Eliminate your monthly mortgage payment and receive steady tax-free income with a Colorado reverse mortgage.

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Our Colorado Springs Reverse Mortgage Options

A reverse mortgage loan officer from our team will explain your options and help you find the perfect mortgage product for your needs.

Colorado Springs Reverse Mortgage Loan Process

Our Colorado Springs, CO, team will guide you through our simple, streamlined loan process, helping you receive your funds faster.

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Get a Colorado Springs Reverse Mortgage Quote

Learn how your home can finance your retirement by requesting a no-obligation quote, all online.

Colorado Springs Reverse Mortgages: Secure Your Financial Future

Seniors concerned about running out of money during retirement can access their home’s equity while still living in the home they love. This not only eliminates mortgage payments but also provides tax-free cash flow.

Benefits of a Colorado Springs Reverse Mortgage

Colorado Springs, CO, has a senior population of over 50,000, many of whom may have significant home equity they can use to fund their golden years. Home values in the city have doubled since 2013, mirroring the dramatic increase in house prices throughout the state.

This appreciation represents an excellent opportunity for older homeowners to age in place while reducing their expenses and supplementing their income through reverse mortgages.

This specialized loan product replaces an existing mortgage with a larger loan for the home’s current value, and the lender then provides the borrower with the surplus in their chosen payment method.

Whether you’d like to use your tax-free funds for home repairs, travel, paying off other debts, or simply ensuring financial security, a reverse mortgage loan lets you live comfortably.

How Does a Colorado Springs Reverse Mortgage Work?

The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM). These mortgages are insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD).

To apply, borrowers must be age 62 or older and have at least 50% equity in their home, which must also be their primary residence. Typically, you should not owe any federal debt, such as unpaid taxes or student loans, though it may be possible to receive a loan if you can cover your federal debt with your loan proceeds.

Those seeking an HECM must consult a HUD-approved counselor before signing the paperwork. This counseling session ensures that borrowers understand their obligations. The Colorado Housing Finance Agency has listed these counselors by region.

The maximum amount you can receive with a HECM loan is $1,149,825 in Colorado, and you typically cannot receive more than 60% of the home’s value within the first year of funding.

If you require more than the Colorado Springs, CO, loan limit, you can seek proprietary reverse mortgages from private lenders, sometimes called jumbo mortgages.

You can receive your funds in various ways. You can choose an upfront lump sum payment, monthly payments, or a line of credit you can draw down as necessary.

A reverse mortgage does not need to be repaid until the home’s title is transferred to another party, such as by sale, moving away, or the homeowner passing away. The loan will then come due, and in the case of inheritance, the surviving family members can purchase the home for 95% of its appraised value if it’s underwater. If the home has equity, heirs can sell it for any price.

Why Choose Arnaiz Mortgage for Your Colorado Springs Reverse Mortgage

We provide a range of products for homeowners from all walks of life, including reverse mortgages. Every reverse mortgage specialist from our team is highly familiar with the Colorado Springs, CO, housing market and can guide you to the best mortgage product for your specific needs.

At Arnaiz Mortgage, we’re committed to providing our clients with transparent, trustworthy advice that helps them get mortgages fast. We’re there for you every step of the way, ensuring all your questions are answered quickly. Our mortgage specialists take the time to understand your circumstances and find a lender that matches what you’re looking for in a mortgage.

If you’re ready to put your house to work, speak to a reverse mortgage specialist at (623) 806-4645 or apply online for speedy service. You can also get a quick free quote to see how much you can achieve with a HECM product.

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Frequently asked questions about Colorado Springs Reverse Mortgage

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

    To qualify for reverse mortgages, homeowners must be 62 or older and either own their home outright or have at least 50% equity.

    You should not owe any federal debt or be able to fulfill the debt with the loan proceeds before drawing down further funds. The home being mortgaged must be a primary residence.

    Those seeking FHA-insured mortgages must have a counseling session with a HUD-approved counselor.

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

    Generally, you should have at least 50% equity before applying for reverse mortgages. Some private lenders may have different percentages they will accept, but this is the standard percentage.

  • What are the upfront costs and fees associated with a Colorado Springs reverse mortgage?

    Like with other loans, you must pay origination fees to the lender to cover the cost of obtaining the mortgage. HECM fees are capped at $6,000. Additionally, you will be responsible for closing costs for services like title searches, appraisals, and inspections. HECM loans come with an initial mortgage insurance premium of 2% and an annual MIP of 0.5%.

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

    When you obtain a Colorado reverse mortgage, you are still responsible for covering property taxes and homeowners insurance while you live in the home. The lender will request proof that you can satisfy these expenses.

    Reverse mortgages also do not impact certain government benefits, including Social Security and Medicare, though they may influence some needs-based benefits like Medicare. The loan proceeds are not considered taxable income.

  • Can I use a reverse mortgage to pay off an existing loan in Colorado Springs?

    Yes. Reverse mortgages are a convenient way to reduce monthly expenses by paying off your current mortgage. You can also use the proceeds from the mortgage to pay other debts, like car loans, personal loans, and medical bills.

    If you have a specific bill in mind to pay, you can access single-purpose reverse mortgages that can be applied to that debt. Private lenders provide these and are not insured by the FHA.

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

    The reverse mortgage is due when the original borrower no longer lives in the residence due to a sale, relocation, or passing away. If you decide to sell the home or move to a different residence, you must start paying the loan back.

  • How do home values in Colorado Springs affect reverse mortgage options?

    The loan amount you can receive from a reverse mortgage depends on how much equity you have in the property, which means that rising property values serve to build your potential proceeds.

    Property values in Colorado Springs have risen significantly in the past decade, so you may receive a substantially more significant amount than expected.

  • Can I refinance an existing reverse mortgage in Colorado Springs?

    You can refinance an existing reverse mortgage, such as adding a new cosigner who recently turned 62.

    It’s also possible to seek better interest rates or a larger loan. Additionally, reverse mortgages can be reverted to traditional mortgages if you would like to begin repaying your loan.

  • How does a reverse mortgage impact my heirs and estate in Colorado Springs?

    If you pass away with a reverse mortgage, your heirs must repay the balance or sell the property for at least 95% of its appraised value if it’s underwater. However, if the home has equity, it can be sold for whatever the heirs like.

    Speaking to a financial advisor about the impact this may have on your estate can ensure your loved ones know their responsibilities after you pass away.

  • What are the payout options available for a Colorado Springs reverse mortgage?

    You can receive your funds in various ways, including an upfront lump sum, monthly installments, or a line of credit you can access as necessary.

    It’s also possible to combine these by receiving one portion as an upfront payment and keeping the rest in reserve as a line of credit.

    Should your financial situation change, you can also change how you receive your funds for a small fee.