Reverse mortgage Tucson AZ with Kevin A. Guttman

reverse mortgage tucson

Are you about to retire from work, and you’re putting things in place to have a lovely retirement? Then, going for a reverse mortgage in Tucson is an option you might want to opt for. You’re qualified to get a reverse mortgage if you are over 62 years, and you own a home with adequate home equity. As a homeowner, a reverse mortgage allows you to borrow equity. Rather than paying the lender, the lender makes payment to the borrower.

How does reverse mortgage work in Tucson AZ?

With a reverse mortgage, you’re not required to make any monthly mortgage payments as long as you still stay in the house, and you continue to meet your usual obligations. These obligations include payment of your property taxes, maintaining your property, plus homeowners’ insurance.

Tucson Reverse Mortgage Payments

Reverse Mortgage payments can be made either as a lump sum, Periodic advances through a line of credit, as a monthly payment as long as the borrower still resides in the home, or as a combination of any of them. Now comes the question, what precisely do you stand to gain by taking a reverse mortgage?

Geographic info for Tucson, AZ

Oro Valley and Marana are located northwest of Tucson, Sahuarita is located south of Tucson, and South Tucson is located in an enclave south of downtown. Casas Adobes, Catalina Foothills, Flowing Wells, Midvale Park, Tanque Verde, Tortolita, and Vail are all communities around Tucson (some within or overlapping the city borders). Benson is to the southeast, Catalina and Oracle are to the north, and Green Valley is to the south of the Tucson metro region.

When Hugo O’Conor ordered the construction of Presidio San Agustin del Tucsón in 1775, the Spanish established Tucson as a military fort. After Mexico obtained independence from the Spanish Empire in 1821, it was incorporated into the state of Sonora. Under the Gadsden Purchase, the United States purchased a 29,670 square mile (76,840 km2) section of present-day southern Arizona and southwestern New Mexico from Mexico in 1853. From 1867 to 1877, Tucson was the capital of the Arizona Territory. During the territory period and early statehood, Tucson was Arizona’s most populous city, until it was eclipsed by Phoenix in 1920. Despite this, population growth remained robust in the late twentieth century. UNESCO named Tucson the first “City of Gastronomy” in the United States in 2017.

Tucsón [tukson], the Spanish name for the city, is derived from the O’odham Cuk n [tk n], which means “(at the) base of the blackhill,” referring to the basalt-covered hill now known as Sentinel Peak. “The Old Pueblo” is a nickname given to Tucson.

The city had 520,116 residents, 229,762 households, and 112,455 families according to the 2010 census. The population density was 2,500.1 people per square mile (965.3 people per square kilometer). At an average density of 1,076.7 per square mile (415.7/km2), there were 209,609 dwelling units. The city’s racial makeup was 69.7% White (down from 94.8%), 5.0 percent Black or African-American, 2.7 percent Native American, 2.9 percent Asian, 0.2 percent Pacific Islander, 16.9% from other races, and 3.8 percent from two or more races. 41.6 percent of the population was Hispanic or Latino of any race. In 2010, non-Hispanic whites made up 47.2 percent of the population, compared to 72.8 percent in 1970.
Tucson has the lowest amount of black-white segregation of any of the 100 major metropolitan areas in the United States, according to research by demographer William H. Frey based on data from the 2010 United States Census.

Reverse mortgage rates Tucson

As a homeowner, reverse mortgage makes you live a more comfortable retirement. It allows you to continue living in your home while also getting paid. Reverse mortgage rates will vary opto the current market rates, loan amount and credit history. Contact the Kevin A. Guttman team to see what today’s mortgage rates are, call (877) 251-9709

Here are the benefits to a reverse mortgage.

  • You remain as the homeowner on title.
  • You still retain ownership of your home.
  • You can also choose to take your funds whichever way you desire.
  • You can take it as a lump sum at once.
  • You can also take it as a line of credit that can be tapped when needed.
  • You can choose to have a steady stream to be paid monthly for a specific period, or as long as you are still a resident of the home.
  • You are entitled to as citizens from the government are generally not affected by a reverse mortgage loan.
  • You’ll still get your social security or your Medicare benefits.

Once your loan has been repaid, you or your heirs are entitled to the remaining equity. In other words, the remaining equity belongs to you. These are the benefits of taking a reverse mortgage.

Tucson reverse mortgage broker

Another option is that you can be paid with a combination of these options. However, if you opt for a fixed-rate loan, you’ll be paid a single disbursement lump sum. This is good if you have a significant project you need to spend on. Contact the team at Kevin A. Guttman to get more information on a reverse mortgage.

Like every form of home financing, there are pros and cons to each. For many, a reverse mortgage is a huge lifeline and well suited to their particular situation. For those homeowners, the pros of a reverse mortgage outweigh the cons.

Here are some reverse mortgage pros for your consideration.

  • The proceeds are not taxable.
  • The borrower is not responsible for the repayment of the loan.
  • Backed by the Federal Housing Administration.
  • You can pay off any time, no pre-payment penalty.
  • Equity doesn’t count as income and shouldn’t affect Social Security or Medicare benefits.
  • The term of the loan goes to age 150 of the youngest borrower.
  • The loan can be fixed or adjustable-rate.

Here are the cons of a reverse mortgage.

Property taxes, homeowners insurance, other housing fees such as HOA dues or Flood insurance must be paid by you as with any home. You have to live in the home 6 months or more a year as your primary residence, and maintain the home.

  • A reverse mortgage has strict regulations by the Federal Government.
  • Closing costs are higher than on a traditional mortgage.
  • There is a lien placed on the home.
  • There will be less equity for the heirs.
  • Loan balance can grow over time

What qualifies for a reverse mortgage in Tucson AZ?

This particular type of home financing is only available to senior homeowners and the program has been recently reformed to be more fair and favorable towards seniors. A reverse mortgage, for many, is a solution that changes their life.

  • You must be 62 years or greater to qualify.
  • Not all properties qualify for a reverse mortgage.
  • You must have enough equity to qualify.
  • Vacation homes and investment properties are not eligible.

One couple we recently helped wanted to downsize to a house that had main floor living and no yard maintenance. They had enough equity in their home to qualify for the HECM For Purchase (H4P). They were able to purchase a home with main floor living in the neighborhood close to their grand kids and have NO monthly mortgage payment. For them, the cons of a reverse mortgage were outweighed by the benefits!

Jumbo reverse mortgage in Tucson

A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.

Jumbo reverse mortgage loans are targeted at new homeowners with homes valued upwards of 600,000$. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.

Private firms and larger banks are generally responsible for jumbo reverse mortgages, however, mortgagers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.

Reverse mortgage lenders near Tucson AZ

If you want to know if a reverse mortgage is right for your situation, you can get a free confidential analysis. We’ll ask a few questions and can easily determine if your property qualifies for a reverse mortgage. Get your FREE confidential analysis.

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Image Source: Matthew Schallan – Wikipedia Commons