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Reverse mortgages in New Jersey and New York

A reverse mortgage lets homeowners 62 and older borrow against their home without monthly mortgage payments. Interest and fees are added to the balance, which is repaid when the last borrower moves out or passes away, usually by selling the home.

HECM basics

  • The Home Equity Conversion Mortgage (HECM) is the FHA insured reverse mortgage.
  • You must meet with a HUD approved HECM counselor before you apply.
  • For 2026 the HECM maximum claim amount is $1,249,125 in every county. It caps the home value used to figure how much you can borrow.

What you still pay

  • Property taxes, homeowners insurance and upkeep. Falling behind can make the loan come due.
  • The home must stay your main residence.
  • The balance grows over time, which leaves less equity for you or your heirs.

New York

  • New York law lets only authorized lenders make reverse mortgages and requires them to tell you about your right to counseling.
  • The state also has rules for proprietary reverse mortgages and for co-op apartments.
  • Free counseling is available. The NYS Office for the Aging lists options.

Questions people ask

Can my spouse stay if they are younger than 62?
HECM has protections for some eligible non borrowing spouses. Ask the counselor and lender how they apply to you before you sign.
Can non permanent residents get a HECM?
Since May 25, 2025, FHA programs including HECM are limited to U.S. citizens and lawful permanent residents under HUD Mortgagee Letter 2025-09.
Is a reverse mortgage free money?
No. It is a loan. The amount owed grows each month and is repaid from the home when the loan ends.

Official sources

Facts checked 2026-11-01. General information, not financial, legal or tax advice. We are not a lender.

Related: Refinance and home equity

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