Fort Collins Reverse Mortgage

Eligible Colorado seniors can put their home to work with a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage. Instead of paying monthly mortgage payments, homeowners can receive a steady income to cover life’s necessities or other expenses.

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Our Fort Collins Reverse Mortgage Options

We offer a variety of reverse mortgage loan products and can help you choose the one that best suits your needs.

Fort Collins Reverse Mortgage Loan Process

Our team will answer all your questions and guide you through the entire process, helping ensure you receive your funds fast.

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Receive a no-obligation quote based on your home equity to learn what you can receive.

Fort Collins, CO, Reverse Mortgages: Secure Your Financial Future

Reverse mortgages can provide a clear path to financial freedom for Colorado retirees on a fixed budget. This loan option eliminates monthly mortgage payments and provides additional benefits like tax-free retirement income.

Benefits of a Fort Collins Reverse Mortgage

With over 13% of the Fort Collins, CO, population over the age of 65, reverse mortgages are a popular option for providing seniors with the financial flexibility necessary to enjoy their golden years.

Better yet, home values in Larimer County have risen by about 125% in the last ten years, meaning that many homeowners have significant home equity that can be used to finance home repairs, pay off medical bills, or simply supplement their Social Security or pensions.

A reverse mortgage reduces your expenses by replacing your existing mortgage with a larger loan based on your home equity. You won’t need to make monthly mortgage payments and can remain in the home for as long as you choose. Your loan proceeds are not subject to income tax and will not impact your other benefits, like Medicare.

How Does a Fort Collins Reverse Mortgage Work?

The most common type of Colorado reverse mortgage is the Home Equity Conversion Mortgage (HECM) loan, which is insured by the Federal Housing Administration (FHA). To be eligible, all borrowers must be 62 or older, and the home must be their primary residence.

In general, you should not owe federal debt unless you commit to paying it off with the proceeds from the loan. The home cannot have any major defects like foundation problems, major water damage, or termite infestations.

For a HECM loan, borrowers must schedule and attend a financial counseling session with a HUD-approved counselor to discuss their financial circumstances and ensure they are familiar with their obligations. The Department of Housing and Urban Development maintains a list of Colorado counselors who have been approved to provide counseling.

After your home is appraised, you can choose how to receive the loan proceeds. You can usually only receive up to 60% of the equity, ensuring you will not owe more than the home is worth with the interest payments.

Your proceeds could be structured as an upfront lump sum, monthly payments, or a line of credit that can be drawn down as necessary, similar to a home equity line of credit. The maximum loan you can receive in Colorado is $1,149,825.

The loan comes due when the last borrower leaves the property, such as by selling the home, moving into a new home, or passing away. The homeowner’s surviving family members can then choose to sell the home for at least 95% of its appraised value if it’s underwater or pay off the loan themselves to keep the property.

Why Choose Arnaiz Mortgage for Your Fort Collins Reverse Mortgage

Arnaiz Mortgage has been trusted by Colorado clients for years, assisting them in finding financial freedom through reverse mortgages. We strive for total transparency and understand that trust is the foundation of any good mortgage experience.

We’ll take the time to learn your specific goals and match you to the right products for your needs, whether the standard HECM loan or more specialized products like jumbo reverse mortgages, which allow you to exceed the HECM limit.

Our loan officers are familiar with the Fort Collins, CO, real estate market, including ongoing trends like rising property values and a higher cost of living. We’ll help you determine how much you can receive and guide you through the application. Additionally, our streamlined process, built from years of practice in Colorado, helps us get your loan funded faster.

If you’re ready to learn how much you can receive, contact us today at (623) 806-4645 or apply online.

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Frequently asked questions about Fort Collins Reverse Mortgage

  • What are the eligibility criteria for a reverse mortgage in Fort Collins?

    All cosigners must be at least 62 and have demonstrated a history of on-time payments. They may still be able to secure a loan if they have any federal debt, but these debts must be paid off with the loan proceeds. The home must be in good repair.

    Applicants also should have the funds to cover ongoing home costs like property taxes. For any loan insured by the FHA, the borrower must undergo financial counseling to ensure they understand their obligations. There is a mandatory cooling-off period before you can have your mortgage funded to ensure you have not changed your mind.

  • How much home equity is needed to qualify for a reverse mortgage in Fort Collins, CO?

    In general, you should have at least 50% home equity. Some private lenders, such as for proprietary reverse mortgages, may accept a lower percentage.

  • What are the fees and costs involved with a reverse mortgage in Fort Collins?

    Like other mortgages, you will need to pay closing costs, which cover expenses like appraisals, title searches, and inspections. You will also need to pay origination fees, which are typically around 2%. The FHA caps these at $6,000 for a HECM loan. Finally, HECM products require an initial insurance premium as well as annual premiums.

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

    Even with a reverse mortgage, you will need to continue paying property taxes and homeowners insurance, and this new loan should not impact them.

  • What happens to my Fort Collins reverse mortgage if I decide to sell or move?

    You must repay the loan balance when the property transfers ownership, such as by selling the home or moving away.

  • Can I refinance my existing reverse mortgage in Fort Collins, CO?

    Yes, you can refinance an existing reverse mortgage. This can include adding a new cosigner who has recently turned 62, changing your interest rate, or taking out a larger sum if you have accrued more equity.

    It is also possible to convert it to a traditional mortgage and begin making payments again, such as if you want to ensure that your heirs can keep the home in the family after you pass away.

  • How do Fort Collins home values impact reverse mortgage loan amounts?

    The amount you can receive is based on property values, which have risen in Fort Collins over the past decade. Home values have risen by about 125% in Larimer County, meaning you may have more equity you can leverage for your loan. The longer you have kept the home, the more equity you will have and the more you can receive.

  • What are the payout options for a reverse mortgage in Fort Collins?

    You can receive your funds in multiple ways, including an upfront lump sum, monthly payments, or a line of credit. You can also combine these options, such as by receiving part of it upfront and the rest in monthly installments.

  • How will a reverse mortgage in Fort Collins affect my heirs and estate?

    The loan balance must be repaid when the title is transferred to a new party. If you pass away with a reverse mortgage still in place, your heirs must pay off the balance if they want to keep the property. They can purchase the home for 95% of its appraisal price if it’s underwater and satisfies the loan.

  • Are there restrictions on how I can use the funds from a reverse mortgage in Fort Collins, CO?

    If you choose an HECM product, there are no restrictions on using the proceeds. This is also true of some proprietary products like jumbo reverse mortgages, which may not have any restrictions on their use.

    However, getting a proprietary reverse mortgage called a single-purpose reverse mortgage is possible. These can only be used for one expense, and the lender must approve them before you can receive your funds.

    You and the lender will agree on what you can use the proceeds for, and you will need to demonstrate that you have used it for that purpose.