Reverse mortgages in Tempe
Tempe homeowners look at reverse mortgages for different reasons: paying off a mortgage, covering care, or building a cash cushion. Here is how the local numbers shape that decision.
| Measure | Tempe | Arizona | U.S. |
|---|---|---|---|
| Residents 65 and older | 11.1% | 20.6% | 18.9% |
| Owner-occupied homes | 42.3% | 67.4% | 65.2% |
| Median home value | $455,400 | $394,500 | $332,700 |
| Monthly owner costs, no mortgage | $582 | $525 | $638 |
| Monthly owner costs, with mortgage | $1,828 | $1,803 | $1,963 |
| Median household income | $79,663 | $79,964 | $80,734 |
| Veterans | 7,296 | 452,729 | 16,185,883 |
Monthly owner costs are medians and include taxes, insurance, utilities and any mortgage. The Census reports these up to $4,000.
The monthly budget math in Tempe
Tempe owners with a mortgage report median monthly costs of $1,828. Those without one report $582. For a retiree still paying a mortgage, the difference of $1,246 can decide whether staying in the home works.
If that is your situation, the HECM question is simple: can the loan pay off your mortgage, and is what is left enough to live on? The required financial assessment asks nearly the same thing.
Condo owners have an extra step
A condo in Tempe needs FHA project approval, or a single-unit approval where the rules allow it. HUD reviews items like owner occupancy, dues delinquency, insurance and litigation.
If your HOA will not provide documents, the loan usually cannot proceed. Ask for the budget, reserve study and master insurance before you spend money on the application.
Home prices around Tempe
The latest FHFA reading has the Phoenix metro area at +0.8% year over year. The longer view is +35.8% since 2021. Compared with the +27.4% statewide five-year figure, that is faster than the state.
To put that in dollars: a $455,400 home that tracked the index would have been worth about $340,000 five years ago, roughly $120,000 less. An index is an average and your home may differ, but this is the equity that a reverse loan draws on.
With prices moving slowly, do not plan around future gains. Build the plan on what the home is worth today and on how quickly the balance would grow.
Owners are the minority in Tempe
Only 42.3% of Tempe homes are owner-occupied, against 67.4% across Arizona. A reverse loan is only for owners living in the home, so it reaches a narrower group here. Many of those owners are in condos or small multi-unit buildings.
If you own a duplex to fourplex and live in one unit, it can still qualify. If you live elsewhere, or your home is rented out, it cannot.
What a Maricopa County reverse loan does not cover
Your property tax, insurance, HOA dues and repairs stay your responsibility. Tempe owners without a mortgage report about $582 a month for those kinds of costs and utilities.
Missing them is the most common way a reverse loan goes wrong, so build in a reserve. A home that sits in disrepair can also cause problems, because you agree to keep it maintained.
Property tax help in Maricopa County
A smaller fix may do the job for Tempe owners. Arizona's Senior Property Valuation Protection, often called the senior freeze, locks your home's valuation (not your tax bill) for three years if an owner is 65 or older, you have lived there two years, and average income is under $47,712 for one owner or $59,640 for two or more. Maricopa County handles applications through the county assessor. See the full Arizona reverse mortgage guide.
The rules in brief
Before any Maricopa County application moves forward, you meet with a HUD-approved counselor (1-800-569-4287). Every borrower must be at least 62, and the home has to stay your principal residence, because moving out, selling or the last borrower's death ends the loan. The reverse mortgage guide has the details, and our Tempe mortgage page and HELOC page cover the alternatives.
More in Arizona: Gilbert, Glendale, Chandler, Peoria, Phoenix, Mesa.
Sources: U.S. Census Bureau QuickFacts (American Community Survey 2020-2024, population estimates July 2025). FHFA House Price Index, 2026 Q2. HUD 2026 HECM limit.
Common questions
Can I get a reverse mortgage on my Tempe home?
Many Tempe owners can. The tests are your age (62 or older), your equity, your ability to keep up with taxes and insurance, and whether the property meets FHA standards.
Does the HECM limit matter for a Tempe home?
Most are comfortably under it. The 2026 limit is $1,249,125, and the Tempe median is $455,400, so proceeds are driven by your age, the appraisal and rates rather than the cap.
How much have home values risen near Tempe?
FHFA shows Phoenix metro at +0.8% over one year and +35.8% over five years as of the second quarter of 2026.
Who still pays the Maricopa County property tax bill?
You do. On a reverse mortgage you keep paying property taxes, insurance and upkeep. If you do not, the loan can become due.
Bayview Residential is a mortgage broker and is not affiliated with HUD or FHA. A reverse mortgage is a loan that must be repaid, and the balance grows over time. You must keep paying property taxes, insurance and home maintenance, and live in the home as your principal residence. All loans are subject to eligibility and approval. This page is general information and not legal, tax or benefits advice.