Reverse Mortgage (HECM) Guide for Arizona Homeowners 62+
Arizona is home to approximately 540,000 homeowner households led by someone 62 or older. The state's median home value is $331,000 — driven higher by fast-growing metro areas like Phoenix and Scottsdale. For retirees who have built significant equity, a HECM can convert that equity into tax-free cash flow without monthly mortgage payments, helping cover healthcare costs, home maintenance, or day-to-day expenses.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
$1,249,125
Arizona's median home values fall well below the 2026 FHA lending limit of $1,249,125, so most Arizona homeowners can access the full available equity on their primary residence through a HECM.
Source: HUD Mortgagee Letter 2025-21
Arizona Reverse Mortgage Protections
Arizona does not require additional reverse mortgage counseling beyond the federally mandated HUD HECM counseling session. However, Arizona homeowners benefit from the state's anti-deficiency protections (A.R.S. § 33-814), which in many cases prevent lenders from pursuing homeowners for amounts exceeding the property value — reinforcing the federal HECM non-recourse protection.
Source: Arizona Revised Statutes § 33-814; HUD ML 2014-07
HUD-Approved Counseling in Arizona
Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in Arizona →
Arizona HECM FAQ
Are HECMs available in Arizona?
Yes. FHA HECM reverse mortgages are available in all 50 states, Washington D.C., and U.S. territories, including Arizona. Any FHA-approved lender licensed in Arizona can originate a HECM.
Does Arizona require any additional reverse mortgage counseling?
No state-specific counseling requirement exists beyond the federal HUD mandate. All HECM applicants must complete a one-on-one session with a HUD-approved independent counselor before submitting a loan application — this applies in Arizona as everywhere else.
How do Arizona property taxes interact with a HECM?
HECM borrowers remain responsible for paying property taxes, homeowners insurance, and basic home maintenance. Failure to keep taxes current is one of the few ways a HECM can be called due. Arizona's Senior Property Valuation Protection program (Senior Freeze, A.R.S. § 42-13302) can lock in your home's assessed value — reducing annual tax increases — which makes it easier to stay current on property obligations while holding a HECM.
What if I have a HELOC on my Arizona home?
An existing HELOC must be paid off at or before closing a HECM. Because a HECM must be the sole lien on your primary residence, the HELOC balance is typically paid from HECM proceeds at closing. If the HELOC balance is large relative to available equity, a lender will determine whether enough proceeds remain after payoff to make the HECM worthwhile.
Where can I find a HUD-approved HECM counselor in Arizona?
Use the HUD HECM Counselor Search (link above) filtered to Arizona. Counseling can be done by phone — you do not need to visit in person. The session typically takes 60–90 minutes and is required by federal law before any HECM application can proceed.