Guides
Your Next Home, Your Next Chapter: Planning an Arizona Move in Retirement
Planning an Arizona move in retirement? Compare home features, ongoing costs, cash, traditional financing and HECM for Purchase before you start touring.
The yard may have become more work than you want, or the upstairs bedrooms may sit empty. You might want to be closer to family. Those are useful starting points when deciding what to look for in your next home.
Before you begin touring Arizona homes, consider which features you need and what you can comfortably afford. Include the cost of buying the home and the expenses you’ll have after moving in.
1. Start with your everyday life
Think about how you would use the home each day. Will you use every room? How far is the grocery store? How much time do you want to spend maintaining the property?
As you put together your wish list, consider:
- Ease of movement. Look at entry steps, hallways, bathroom layouts and access between the garage, kitchen and bedroom.
- The right amount of space. A guest room or hobby area may matter more than a formal dining room.
- Manageable upkeep. Ask about the roof, cooling system, landscaping, pool and any maintenance handled by an association.
- Location that works for you. Consider your own priorities for medical care, shopping, recreation and time with the people you care about.
Bring that list to your real estate broker. Clear priorities help narrow the search and make it easier to recognize a good fit when you see one.
2. Compare the cost of living there
A smaller house does not automatically mean a smaller household budget. One property may need a new air conditioner; another may have association dues, pool expenses or higher insurance costs.
Ask for property-specific estimates of taxes, insurance, utilities, association dues and upcoming repairs. Add moving expenses and closing costs to the upfront budget. Then decide how much money you want to keep available after the purchase for emergencies, travel and other plans.
A useful question: “After I buy this home, what will it cost to live here each month? How much will I have left in savings?”
3. Review the purchase options before making an offer
If you have equity in your current home, paying cash may be one option. A traditional mortgage may be another. Eligible buyers age 62 and older may also want to learn about a Home Equity Conversion Mortgage for Purchase, often called a HECM for Purchase.
This FHA-insured reverse mortgage can help finance a new primary residence. The buyer contributes cash toward the purchase, and the loan provides the remaining eligible financing. It is not a zero-down program: you must cover the difference between the loan proceeds and the purchase price, plus closing costs.
The available loan amount depends on factors including age, interest rates and the property’s value, subject to program limits. A lender must evaluate both the borrower and the property. Required independent HECM counseling is also part of the process.
| Option | What to weigh |
|---|---|
| Pay cash | No mortgage debt on the new home, but more of your available money is committed to the property. Ownership expenses continue. |
| Traditional mortgage | Retain some cash while taking on scheduled loan payments, interest and closing costs. Qualification and loan terms vary. |
| HECM for Purchase | Eligible buyers combine a cash contribution with a reverse mortgage. There are no required monthly principal-and-interest payments while loan conditions are met, but ownership expenses remain and the loan balance generally grows. |
Understand what a reverse mortgage still requires
A reverse mortgage is a loan secured by your home. You retain ownership, and you must use the home as your principal residence, maintain it, and pay property taxes, homeowners insurance and applicable association charges. Failure to meet the loan obligations can lead to foreclosure.
Interest and fees are added to the balance over time, which generally increases the debt and reduces the equity available later. The loan generally becomes due when the home is sold or is no longer the borrower’s principal residence, or after the last borrower dies, subject to applicable protections for an eligible non-borrowing spouse.
That makes your expected time in the home, other financial resources and plans for your heirs important parts of the conversation. Ask for a written comparison of upfront costs, cash needed at closing, projected loan balances and ongoing expenses. Review the choices with your lender, independent counselor and other advisers as appropriate.
4. Work out your budget before touring homes
Start with a budget and a short list of the features you need. If a reverse mortgage for purchase interests you, discuss eligibility and timing with a qualified loan professional before writing an offer.
Your broker can help evaluate properties and the steps involved in selling your current home. Your loan professional can explain financing requirements and the numbers for your situation. Having those details early can help you decide whether a home is within your budget before making an offer.
Before you start your search: Write down what you most want to change about your current home. Bring that list and your budget to your broker to discuss which homes to consider.
Questions about financing your next move?
Talk with us about reverse-mortgage purchase options and the costs and responsibilities to compare before you make an offer.
Learn more in our HECM for Purchase in Arizona guide.
For general educational purposes only. This is not a loan commitment or individualized financial, tax or legal advice. Eligibility, property requirements, costs and terms apply. FHA insurance does not constitute a government endorsement of a lender or broker. Real estate and mortgage services are provided separately; you may choose your own providers.