Arizona Reverse Mortgage Lending Limit History

A decade long look at Arizona reverse mortgage lending limits in Maricopa County Arizona.

It wasn’t long ago when reverse mortgages, of the FHA kind, were subject to a lending cap that varied county by county. The number was tied to median home price and was quite low for many years. When I started in the reverse mortgage business a decade ago, the lending cap in Maricopa County,  Arizona where I live was just $137,000. Gradually, it grew over the years, to match the swelling value of real estate in 2004, 2005 and 2006, until it reached a high of approximately $267,000 in this county. Due to low interest rates, the increasing popularity of reverse mortgages and the absolute need for the loan, the FHA recognized the need to increase the lending cap for everyone, across the country and came up with $417,000, a number most banks were familiar with because it is the conforming loan limit. Still we pressed on, trying to qualify seniors for reverse mortgages who had large mortgages on upscale homes. Under the Busch administration, a temporary high limit increase was created at $625,500 to help give more home owners in affluent areas a chance at reverse mortgages. Today, this temporary, high limit remains and was extended until the end of 2010, under the Obama relief plan.

For a complete explanation of FHA Reverse Mortgage Lending Limits and why they should be called Reverse Mortgage Value Limits, call me at 602-456-0009.

Michael Manfredi is an Arizona Reverse Mortgage Specialist

Reverse Mortgage Concepts

Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556