Arizona Reverse Mortgage Information: What To Know
Many seniors are looking for the basics of an Arizona reverse mortgage program – stuff like how it works, how much it costs, do they have to pay it back, do they have to move, etc. Some of the highlights of the Arizona reverse mortgage program that is insured by FHA include:
- Make no mortgage payments as long as you live in the home
- Get your money either in a line of credit, monthly installments or a lump sum
- Interest rates for the program can be either fixed or variable
- Arizona reverse mortgage counseling can be done by an FHA approved counselor over the phone and costs $125 and is paid to the Arizona reverse mortgage counseling company
- An Arizona reverse mortgage appraisal is usually $350 and can be paid to the appraiser directly
- All other fees and costs can be put into the Arizona reverse mortgage
Arizona Reverse Mortgage Program Highlights
The Arizona reverse mortgage program is a federally-insured home loan that allows Arizona seniors to convert a portion of their home’s equity into cash. The equity can be paid to directly to the senior in any one of three ways:
- in one large lump sum
- in monthly term or lifetime payments
- in a line of credit held in an interest bearing account until the funds are needed
With an Arizona reverse mortgage, unlike a traditional home equity loan or second mortgage, NO REPAYMENT of the loan is necessary, as long as the senior lives in the home.
Arizona Reverse Mortgage Program Requirements
- Seniors must be Age 62 years or older
- You must have equity in the home to qualify
- You must occupy the home as your primary residence
- You must attend an Arizona reverse mortgage counseling session (FHA counselor)
- You must keep the home in good repair
All money that a senior receives from the Arizona reverse mortgage is tax-free – so it is a great source of tax-free retirement income. And with the way that the economy is today, everyone could use more tax-free retirement income.
Arizona Reverse Mortgage: The First Step
If you are interested in learning if an Arizona reverse mortgage is right for you, the first step is to be sure to speak with a loan officer who has experience in the FHA reverse mortgage programs and can explain how Arizona reverse mortgages work. An experienced loan officer can then point out what the other steps are in the Arizona reverse mortgage process and help answer any questions that you have along the way.
If you have questions about the Arizona reverse mortgage program, contact one of our FHA reverse mortgage experts today.