Who and What? Arizona reverse mortgage qualifications and information:
Who can get an Arizona reverse mortgage loan?
If you want an Arizona reverse mortgage, the owners of the property must be at least 62 years old and the property must be the principal dwelling of the owners. If one of the owners is not 62, then the title of the property has to be wholly owned by the older person prior to obtaining a reverse mortgage. The property has to be free from debt or nearly paid off. Single family one-unit homes are the typical properties used for obtaining a reverse mortgage. Multi-unit (2~4 units) are eligible if the owner resides in one of the units. There are other eligible property types such as condominiums, but you should speak with a loan counselor to determine the eligibility of the property.
What is an Arizona Reverse Mortgage and what are my responsibilities?
An Arizona reverse mortgage is a loan that is paid to you. Traditional loans that you repay are also called "forward mortgages". In an Arizona reverse mortgage, money is paid to you with the equity of the home used as collateral. This is different from a home equity loan in that a home equity loan has a lump sum payment and then you begin repaying the loan. The typical Arizona reverse mortgage holder opts for tenured monthly payments sometimes with a lump sum payment at the start. With the tenure payment option, the borrower will receive monthly payments until they die or move out of the home. The lender cannot take possession of your house unless you: let the house fall into disrepair, fail to keep the property properly insured, or fail to pay all property taxes due. If the total amount of the Arizona reverse mortgage exceeds the value of the property, the lender has no recourse to any other asset for repayment as a reverse mortgage is a "non-recourse" loan.
More Arizona Reverse Mortgage Loan Information:
Arizona Reverse Mortgage? | Is it right for you? | Arizona Reverse Mortgage Shopping | Truth in Lending Act | Two Big Ifs | Ways to Get Paid | Who and What? | Who Should Not Get a Arizona Reverse Mortgage?