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I’ve had the privilege of helping Arizona families make big dreams come true, and one story that sticks with me is about a grandmother who used her home’s equity to create a college fund for her grandchild. It’s a heartfelt process, often involving a reverse mortgage, and I’m excited to share how it works, along with other clients’ experiences, to show you what’s possible.
The Power of a Reverse Mortgage
A reverse mortgage lets Arizona homeowners aged 62+ tap into their home’s equity without monthly payments. The loan is repaid later, usually when they pass away or sell the home. I worked with a Tucson grandma who used this to fund her granddaughter’s college, giving her a head start without debt. It’s a way to turn a home into a legacy.
Why She Chose This Path
This grandmother in Mesa wanted her grandchild to study nursing without loans hanging over her head. She saw her home’s equity as a resource to make that happen. I’ve seen similar choices—like a Scottsdale client who funded her grandson’s engineering degree. For these grandparents, it’s about giving their grandkids a shot at their dreams.
How It Works
With a reverse mortgage, you get cash—either as a lump sum, monthly payments, or a line of credit. The Mesa grandma took a lump sum to set up a college savings account. The loan doesn’t need to be repaid until the homeowner moves out or passes, which gave her peace of mind. I helped a Phoenix family do the same, using monthly payments to cover tuition over time.
Arizona’s Market Made It Possible
Arizona’s rising home values, especially in places like Gilbert or Tempe, often mean there’s plenty of equity to work with. The Mesa grandma’s home had gained value, so her reverse mortgage covered tuition and more. Another client in Chandler used their home’s equity to fund trade school for their grandson, thanks to a strong local market. Your home’s value matters, so check with a lender to see what’s possible.
Working with Experts
Navigating a reverse mortgage takes guidance. I always suggest a HUD-approved housing counselor—free and Arizona-based—to explain your options. The Mesa grandma worked with a counselor to ensure her plan aligned with her finances. I also helped a Flagstaff family connect with an advisor to balance their reverse mortgage with other retirement needs. Experts make it less daunting.
Plan for the Long Term
Using a reverse mortgage for a college fund is a big move, so think beyond the immediate goal. Consider future costs, like taxes or home upkeep, and how the loan will be settled later. The Mesa family set up a trust to manage the college fund, while a Glendale client I worked with planned for their own retirement alongside their grandkid’s education. A little foresight keeps everyone secure.
Final Thoughts
Turning a home into a college fund, like that Arizona grandmother did, is one of the most rewarding things I’ve seen. I’ve watched families across Tucson, Phoenix, and beyond use reverse mortgages to give their grandkids a brighter future. If this sparks an idea for you, talk to a local housing counselor or lender to explore your options. I’m rooting for you to make a difference in your family’s story!
