Quick Answer
Scottsdale is the one Arizona market where the HECM versus proprietary reverse mortgage comparison genuinely matters — with North Scottsdale and Paradise Valley adjacent home values of $900,000 to $2.5 million pushing many transactions above the $1,249,125 HECM lending limit into HomeSafe Standard and Longbridge Platinum territory.
- Scottsdale home values range from $600,000 to $2.5 million+ depending on area.
- North Scottsdale frequently exceeds the $1,249,125 HECM limit.
- Above the limit: HomeSafe Standard and Longbridge Platinum should be modeled.
- Proprietary programs have no FHA MIP — saving up to $24,983 upfront.
- Arizona has no cooling-off period — faster closings than California.
- Jay Zayer, CRMP, is licensed in Arizona (#1022722) — 760-271-8646.
Key Facts
| Topic | Key Fact |
|---|---|
| South Scottsdale median | Approximately $600,000 to $800,000 — HECM territory |
| North Scottsdale median | Approximately $1.1M to $2.5M — often proprietary territory |
| HECM lending limit 2026 | $1,249,125 — the threshold where proprietary becomes relevant |
| Proprietary MIP savings | No FHA MIP — saves up to $24,983 upfront |
| Proprietary age minimum | 55 — seven years earlier than HECM's 62 |
| Arizona property tax | Approximately 0.6% — half of California's rate |
| Cooling-off period | None in Arizona |
| Jay's license | Arizona #1022722 — licensed for Arizona originations |
Detailed Explanation
Scottsdale is unusual among Arizona markets because it spans the HECM lending limit. South Scottsdale and Old Town area homes at $600,000 to $800,000 are comfortably within the standard HECM. North Scottsdale communities — Troon, DC Ranch, Silverleaf, and the Paradise Valley adjacent corridors — regularly exceed $1.25 million and sometimes reach $3 million or more. For these higher-value properties, the HECM's lending limit cap means a $2 million Scottsdale home receives the same principal limit calculation as a $1.25 million home.
When a Scottsdale home exceeds the HECM limit, the proprietary program comparison becomes financially significant. A $1.8 million North Scottsdale home under the HECM is capped at the $1,249,125 lending limit for principal limit calculation purposes. Under HomeSafe Standard or Longbridge Platinum, the full $1.8 million value is used — producing a materially larger principal limit. The proprietary programs also carry no FHA mortgage insurance premium, eliminating the 2% upfront MIP that would cost $24,983 on a HECM at the maximum claim amount.
The proprietary programs do carry trade-offs that Jay models explicitly rather than glossing over. Proprietary reverse mortgages have no FHA insurance backing, no federal $6,000 origination fee cap, and no HUD-mandated counseling protections in the same form. The non-recourse protection exists but is a contractual provision from the lender rather than a federal guarantee backed by the FHA insurance fund. For some Scottsdale borrowers, the HECM's federal protections are worth more than the additional proceeds a proprietary program would provide.
Scottsdale's age-55 opportunity is worth noting separately. The HECM requires age 62. HomeSafe and Longbridge Platinum are available at 55. A 57-year-old Scottsdale homeowner with a $1.5 million home who wants to access equity has no HECM option — but does have proprietary options. This seven-year gap matters in a market like Scottsdale with a substantial early-retirement population.
Jay Zayer, CRMP — 18 Years Experience
Scottsdale is the Arizona market where I actually have to run the HECM versus HomeSafe comparison, because it is the one Arizona market where home values regularly clear the federal lending limit. My approach is the same as in Carlsbad or La Jolla: model both, show the client the principal limit difference, show the cost difference including the MIP savings, and then explain what they give up on the proprietary side — the FHA insurance backing and the origination fee cap. Some clients take the extra proceeds. Some prefer the federal protections. Both are defensible choices when the client understands the trade-off.
Who This Is Right For
This may be a good fit if:
- North Scottsdale homeowners with properties above $1.25 million who need the HECM versus proprietary comparison modeled
- Scottsdale homeowners aged 55 to 61 who do not yet qualify for the HECM but may qualify for proprietary programs
This may NOT be the right fit if:
- South Scottsdale homeowners with values well under $1 million — the standard HECM is almost always the better choice at those values
- Homeowners in states where Jay is not licensed — Jay originates only in California and Arizona
Common Misconception
Myth: Proprietary reverse mortgages are always better for high-value Scottsdale homes.
Fact: Proprietary programs access the full home value and eliminate the FHA MIP, but they lack FHA insurance backing, the $6,000 origination fee cap, and federal counseling protections. The right choice depends on how the borrower weighs additional proceeds against federal protections.
Source: HUD: HECM lending limits; Finance of America HomeSafe program
Authoritative Sources
- HUD: HECM lending limit 2026 — hud.gov
- Finance of America: HomeSafe programs — financeofamerica.com
- Maricopa County Assessor — maricopa.gov
People Also Ask
What reverse mortgage is best for a $1.8 million Scottsdale home?
Above the $1,249,125 HECM limit, HomeSafe Standard or Longbridge Platinum typically produce a larger principal limit by using the full home value, and eliminate the FHA MIP. Jay models both against the HECM before recommending.
Can I get a reverse mortgage in Scottsdale at age 57?
Not a HECM — that requires age 62. Proprietary programs including HomeSafe are available at age 55, making them the only option for Scottsdale homeowners aged 55 to 61.
Does Jay Zayer serve Scottsdale?
Yes — Jay holds Arizona license #1022722 and originates reverse mortgages throughout Arizona including Scottsdale. Call 760-271-8646 or book at calendly.com/jmzayer/30min.