Lump sum
Receive a one-time payout at closing, useful for paying off an existing mortgage, covering a large expense, or handling a major home repair.
Reverse Mortgages in Arizona (HECM) for Homeowners 62+
If you're 62 or older and have built up equity in your Queen Creek or Gilbert home, a reverse mortgage can turn part of that equity into cash, with no required monthly mortgage payment. It's a meaningful decision, so Howard Funding takes the time to explain it clearly and honestly, with no pressure and no jargon.
The Basics
What a reverse mortgage really is
A reverse mortgage is a home loan built for older homeowners. Instead of you making payments to a lender each month, the lender pays you, drawing on the equity you've already built. It works in the opposite direction of a traditional "forward" mortgage: with a regular loan your balance goes down over time as you pay it off, while with a reverse mortgage the balance grows over time as you receive funds and interest is added.
The most common reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Because it's federally insured, a HECM comes with important consumer protections, including required independent counseling and a guarantee that you'll never owe more than the home is worth when the loan is repaid.
You keep the title to your home. You continue to live there as your primary residence. The loan simply lets you access equity you'd otherwise have to sell the house to reach. Many Arizona retirees use it to supplement fixed income, eliminate an existing mortgage payment, or build a financial cushion for later.
Eligibility
Who qualifies
Reverse mortgage eligibility looks different from a traditional loan. It's based more on your age, your equity, and the home itself than on income and credit alone. In general, you'll need to meet these requirements:
- Age 62 or older. The youngest borrower on the title must be at least 62. A younger spouse can often be protected as an eligible non-borrowing spouse.
- Primary residence. The home must be where you live most of the year, not a vacation home or a rental.
- Significant equity. Many borrowers own their home outright or have a small remaining balance. A reverse mortgage can pay off that existing balance first.
- An eligible property. Single-family homes, many condos, and some manufactured homes that meet FHA standards can qualify.
- Ability to keep up costs. A financial assessment confirms you can continue paying property taxes, insurance, and upkeep.
How much you can access depends on your age, current interest rates, and your home's value, older borrowers with more equity generally qualify for more. We'll run your specific numbers so you see real figures, not guesses.
Your Money, Your Way
How you receive the funds
One of the most flexible features of a HECM is that you choose how you'd like to receive your money. You can even combine methods to fit your plan.
Line of credit
Draw money only as you need it and pay interest only on what you use. An unused HECM credit line can grow over time, giving you a flexible standby resource.
Monthly payments
Set up steady monthly advances for a fixed number of years or for as long as you live in the home, a simple way to supplement retirement income.
The funds you receive from a reverse mortgage are generally not treated as taxable income, though everyone's situation differs, it's smart to confirm with your tax advisor and, if you receive need-based benefits, to check how proceeds might affect them.
The Key Feature
No required monthly mortgage payment
With a reverse mortgage, you make no monthly mortgage payment for as long as you live in the home as your primary residence. The balance is repaid later, when you sell, move out, or pass away.
That said, "no mortgage payment" does not mean "no obligations." To keep the loan in good standing, you must continue to:
- Pay your property taxes on time
- Keep homeowners insurance in force
- Pay any HOA dues that apply to your home
- Keep the home in reasonable repair
Falling behind on taxes, insurance, or upkeep can put the loan into default, so it's important to budget for these costs, just as any homeowner would.
You receive funds
Take your equity as a lump sum, line of credit, monthly advances, or a mix.
The balance grows
Interest and fees are added to the loan over time instead of you paying monthly.
You keep living there
Stay in your home as your primary residence, keeping taxes, insurance, and upkeep current.
The loan is repaid
When you sell, move out, or pass away, the balance is repaid, usually from the sale of the home.
A Built-In Safeguard
HUD-approved counseling is required
Before you can move forward with a HECM, federal rules require you to complete a counseling session with an independent, HUD-approved counselor. This isn't a sales meeting, it's a consumer protection designed to make sure you fully understand how the loan works, what it costs, and what your alternatives are.
During counseling, a neutral third party reviews your situation, explains your responsibilities as a borrower, and walks through other options that might fit your goals better. Only after you've completed this session and received your certificate can your application proceed. We think this is a good thing, and we'll help you find an approved counselor near you.
Reverse mortgages are complex. A HECM is a significant financial decision that affects your equity and your estate. Independent HUD-approved counseling is required before you apply, and we strongly encourage you to include the family members or advisors you trust in the conversation. Howard Funding will give you straight answers and never pressure you toward a loan that isn't right for you.
Weighing It Honestly
Common uses, and things to consider
A reverse mortgage is a good fit for some homeowners and the wrong move for others. Here's a balanced look at both sides.
Common, sensible uses
- Supplementing a fixed retirement income
- Eliminating an existing monthly mortgage payment
- Creating a standby line of credit for emergencies
- Covering home modifications so you can age in place
- Paying for healthcare or in-home care costs
- Delaying Social Security to grow your future benefit
Things to weigh carefully
- It reduces the equity and inheritance you leave behind
- The balance grows over time as interest is added
- There are closing costs and ongoing FHA insurance
- You must keep up taxes, insurance, and upkeep
- Moving out for over a year can trigger repayment
- It may not fit if you plan to move soon
Heirs & Repayment
What happens to the home and your heirs
A reverse mortgage becomes due when the last borrower sells the home, moves out permanently, or passes away. At that point, your heirs typically have a few months to decide what to do, and they have real options.
Most often, the family sells the home, pays off the loan balance from the proceeds, and keeps whatever equity is left. If your heirs want to keep the home, they can repay the balance directly or refinance it into a traditional mortgage in their own name.
Importantly, a HECM is a non-recourse loan. That means neither you nor your heirs will ever owe more than the home is worth when the loan is repaid, even if the balance has grown beyond the home's value. The FHA insurance covers the difference. And if the home sells for more than the balance owed, the remaining equity belongs to you or your estate.
- Heirs can sell the home and keep any remaining equity
- Heirs can keep the home by repaying or refinancing the balance
- Neither you nor your heirs will ever owe more than the home's value
- An eligible non-borrowing spouse may be able to remain in the home
Local & Personal
A Queen Creek lender who takes the time to explain
Chance Howard is known across Queen Creek and Gilbert for straight talk and patient guidance, and reverse mortgages are exactly the kind of decision that deserves both. As an independent mortgage broker, Howard Funding isn't tied to a single product. If a reverse mortgage is the right fit, we'll shop it carefully. If it isn't, we'll tell you and point you toward a better path.
We work with homeowners throughout the East Valley, Queen Creek, Gilbert, Chandler, Mesa, San Tan Valley, and all of Arizona, and we're happy to include your adult children or financial advisor in every conversation. This is a family decision, and it should feel like one.
Common Questions
Reverse mortgage FAQ
Who qualifies for a reverse mortgage in Arizona?
To qualify for a HECM reverse mortgage, the youngest borrower on title must be at least 62 years old, the home must be your primary residence, and you need significant equity, often you own the home outright or have a low remaining balance. The property must meet FHA standards, and you must be able to keep up with property taxes, homeowners insurance, and upkeep. A financial assessment confirms you can meet those ongoing obligations, and completing HUD-approved counseling is required before you apply.
Do I still own my home with a reverse mortgage?
Yes. You keep the title to your home with a reverse mortgage. The lender places a lien against the property, just like any other mortgage, but you remain the owner. You can live there as long as it is your primary residence and you keep up with property taxes, homeowners insurance, and reasonable maintenance. The loan becomes due when the last borrower sells, permanently moves out, or passes away.
Do I have to make monthly mortgage payments?
No monthly mortgage payment is required on a reverse mortgage. Instead of you paying the lender, the loan balance grows over time as interest and fees are added. You are still responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home in good repair. Falling behind on those obligations can put the loan in default, so budgeting for them matters.
What happens to my heirs when I pass away?
When the last borrower passes away or permanently leaves the home, the loan becomes due. Your heirs typically choose to repay the balance and keep the home, often by selling it or refinancing into a traditional loan. A HECM is a non-recourse loan, which means your heirs never owe more than the home is worth at that time. If the home sells for more than the balance, the remaining equity belongs to your estate.
Is a reverse mortgage a good idea?
It depends entirely on your goals, your finances, and how long you plan to stay in your home. A reverse mortgage can help you supplement retirement income, eliminate an existing mortgage payment, or create a standby line of credit, but it reduces the equity you leave behind and carries closing costs and ongoing obligations. Because it is a complex product, independent HUD-approved counseling is required. Howard Funding will walk through the trade-offs honestly, with no pressure.
This is not a commitment to lend. Rates and terms are subject to change and vary by borrower and property. Equal Housing Lender.
Ready when you are
Wondering if a reverse mortgage fits your plans?
Let's talk it through, honestly and without pressure. Chance will explain your options, run real numbers, and help you decide what's right for you and your family.