Can You Use a Reverse Mortgage to Buy Your Next Home? Yes, and Here’s How

Can You Use a Reverse Mortgage to Buy Your Next Home? Yes, and Here's HowMost people who have been on the market for a home are familiar with what the term ‘mortgage’ means, but many have not heard of a reverse mortgage and aren’t aware of how this product can benefit them. If you’re nearing retirement and are contemplating a new home or even relocation to another community, here are the details on a reverse mortgage and how this option may benefit you.

What Is A Reverse Mortgage?

While many homeowners may not have the net worth to be able to buy another home without selling their current one, a reverse mortgage enables the buyer to borrow money against the value of their home. Created in 2009 as the Home Equity Conversion Mortgage for Purchase (HECM), this type of mortgage can enable those older than 62 to relocate to a new house or move closer to their family without having to sacrifice the money they’ve saved or their fixed monthly income.

What Are The Requirements?

Beyond the minimum age requirement of 62 years of age, those who would like to utilize a reverse mortgage must either own the current property they are living in or have a high amount of equity in the property. They must be able to pay all of the costs associated with ownership of the home and the property they are purchasing must be able to pass the standards held by the Federal House Administration (FHA). In addition, applicants will have to go through a financial assessment to ensure they can make insurance and property tax payments.

The Benefits And Drawbacks Of Reverse Mortgages

A reverse mortgage can be a great benefit in that it enables those who are in their senior years to purchase a new home without having to utilize a portion of their fixed monthly income. However, because a reverse mortgage includes this benefit, it also comes in tandem with a higher loan balance and this higher balance means that interest will accrue more quickly. Dependent on this amount, this can actually diminish the equity in the home.

While the opportunity for a reverse mortgage has been around for a number of years, this alternative for purchasing a home has not been utilized by many homeowners since its inception in 2009. If you’re approaching your senior years and are considering the benefits of purchasing a new home, give me a call for more information – J.P. Cook – 602-320-4253.

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8009 W Desert Cove Avenue Peoria, AZ 85345

$449,900
4 Beds
2 Baths
1,636 SqFt
Status Active
MLS # 6612345
Property Type Single Family Residence
Price Type --
No HOA!! This Peoria home features 4 bedrooms, 2 baths and a 2-car garage with partial remodeling in recent years. Spacious living and dining rooms that open to the kitchen. The kitchen features newer stainless steel appliances including refrigerator, granite counter tops, tiled backsplash, recessed lighting, and a large walk-in pantry. Master bedroom is spacious and features a walk-in closet and the Master bath features double sinks and a walk-in shower! Newer 6-panel interior doors, ceiling fans, light fixtures, 2'' blinds, toilets, and hardware. Owned soft water system and windows are not original to the home. The backyard has so many wonderful possibilities. There is a children's play area, a fenced PebbleTec play pool, an extended covered patio, a large RV gate with slab parking for an RV or other toys, another area for gardening, and storage sheds. Close to the 101 and 60 Freeways, shopping, dining, and the State Farm Stadium!

11109 E Pima Circle Dewey, AZ 86327

$449,900
3 Beds
2.5 Baths
2,085 SqFt
Status Active
MLS # 6639904
Property Type Single Family Residence
Price Type --
Great 2 story home located on a quaint & quiet cul-de-sac w/minimal HOA fees featuring a golf course, restaurant, fitness center, pool & sports courts. This home features two bedrooms upstairs w/a potential 4th bedroom or den/study downstairs. The primary bedroom is located on the main floor features a walk-in-closet, dual sinks, garden tub/shower & private toilet room. Large open concept w/vaulted ceilings & lots of natural light in the living, dining & option for formal dining or media room. The covered deck off the kitchen & living room opens to mntn & neighborhood views Separate laundry & powder room. Two fenced in yards for children, dogs or a possible garden. Room to park your RV, additional vehicles or toys. New roof, flooring & stairway carpet in 2023 w/ceiling fans throughout.

11929 W Alvarado Road Avondale, AZ 85392

$449,900
4 Beds
2 Baths
2,052 SqFt
Status Active
MLS # 6640101
Property Type Single Family Residence
Price Type --
Stunning 4 bedroom, 2 bath home located on a large north south facing lot in the Cozy Donatela Community. Nice open floorplan to provide a great room concept. Open kitchen with center island, many cabinets for storage & pantry. Large master bedroom with spacious bathroom, dual sinks Plus a large walk-in closet. The backyard is your very own private oasis with large pool, covered patio, low maintenance landscaping with the front and backyard. Owned water softener & RO. Leased Solar to keep those utility costs low. Great location for all your Arizona needs to include schools, parks, shopping, hiking Plus so much more!

8630 E Bella Vista Road San Tan Valley, AZ 85143

$449,900
4 Beds
2 Baths
2,076 SqFt
Status Active
MLS # 6647747
Property Type Manufactured Home
Price Type --
A BRAND NEW Clayton Home is setup and ready for move in! 3% Seller concession offered with a full price offer! This 4 bedroom, 2 bathroom home offers just under 2,100 square feet with an excellent layout. The very popular 'Nirvana' model has an exceptional floor plan with all the modern finishes. There is laminate flooring in all living spaces and carpet in the bedrooms. The luxury kitchen has upgraded cabinets, a huge quartz island, all appliances included, and more. There is a large master bedroom, with a stunning bathroom that includes dual sinks, separate shower/tub, and walk-in closet. This home is situated on approx 1.5+/- acres in a quiet area of San Tan Valley, but close to all local conveniences. Great property for horses or plenty of room to add on shops, storage, with no HOA!

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