A reverse mortgage is a financial agreement in which a homeowner gives up home equity in exchange for a lump sum or monthly payments from a lender. Reverse mortgage borrowers can use the funds flexibly and don’t make payments as long as they live at the home. Our partners at ConsumerAffairs researched the best reverse mortgage lenders in Tucson to help you decide whether to apply.
Tucson’s popularity among seniors and its rising property values make many homeowners eligible for a reverse mortgage. Two of the main qualifications for a reverse mortgage are being at least 62 and owing nothing — or very little — on your home. Nearly 14 percent of Tucson residents are 65 or older, and the median home price, about $185,000, has been appreciating.
A reverse mortgage is not the same as a home equity loan. The main difference is the borrower does not make regular payments to pay back the lender. Instead, the loan is not due until the borrower dies or moves out of the home. Reverse mortgages in Tucson help seniors pay bills, cover monthly expenses, remodel homes, start a new investment strategy or pay for long-term care.
The most popular kind of reverse mortgage is a Home Equity Conversion Mortgage. HECMs are popular because they are government-insured and offer different ways to receive funds, like monthly payments, a lump sum or a line of credit.
Type of reverse mortgage
Use of funds
Home Equity Conversion Mortgage (HECM)
U.S. Department of Housing and Urban Development
Options for receiving funds; guidance from HECM counselor
Proprietary reverse mortgage
Loans can exceed federal limits; funds usually available only as lump sum at closing
Single-purpose reverse mortgage
State and local government agency or nonprofit
Most applicants with low or moderate income can qualify
Single purpose, specified by lender
When you apply for a reverse mortgage in Tucson, the lender will verify that you can uphold certain financial obligations, such as paying property taxes and insurance. A HECM requires that you participate in an information session with an approved counselor.
Keep in mind that there are costs associated with reverse mortgages in Tucson, such as mortgage insurance premiums, third-party charges, an origination fee, interest and servicing fees. There are also potential effects on estate planning, since many loans are repaid after the borrower’s death. For this reason, many reverse mortgage applicants involve family members in the decision-making process.
Finance of America Reverse is one of the leading reverse mortgage lenders in the country. Products for customers include Home Equity Conversion Mortgages, a HomeSafe jumbo reverse mortgage and “Reverse for Purchase” loans. Reviewers say FAR makes the process of applying for a reverse mortgage simple and straightforward and praise the company for helping them strengthen financial security during retirement. FAR is rated A+ by the Better Business Bureau.
Liberty Home Equity Solutions is one of the largest lenders of Home Equity Conversion Mortgages in the U.S. The company has funded $7.5 billion in loans to over 60,000 borrowers. Customers who visit the website can use a free eligibility calculator and get a reverse mortgage guide. According to reviews, Liberty Home Equity Solutions representatives are helpful and knowledgeable. The company has an A+ rating with the Better Business Bureau.
Guild Mortgage has a number of different branches in the Tucson area to help residents with reverse mortgages. The company has 56 years of experience in home lending and prides itself on keeping customers informed at each step of the lending process. Many customers give Guild Mortgage five stars for its outstanding customer service and patience with clients. Guild Mortgage has an A rating with the Better Business Bureau.
Peoples Mortgage Company
Peoples Mortgage Company started in Arizona in 1998 and has grown to become a nationally competitive lender with superior service. Tucson residents looking at a reverse mortgage can visit one of several different area locations and get any questions answered. Reviewers say Peoples Mortgage Company loan officers are professional and courteous and recommend the company to others. Peoples Mortgage Company has an A+ rating with the Better Business Bureau.