Reverse mortgages in New Jersey

New Jersey follows the federal rules

Unlike New York or California, New Jersey does not layer significant additional requirements on top of the federal HECM programme. What applies to you is the HUD rulebook: age 62 or older, principal residence, independent counseling before application, and a financial assessment.

That makes the process simpler here. It does not make it lighter — the federal requirements are substantial on their own, and the counseling session is required regardless.

The highest property taxes in the country, and three programmes that offset them

New Jersey has the highest effective property tax rate of any state, and it is not close. For a reverse mortgage borrower that is the defining local fact, because the loan removes your mortgage payment and leaves the tax bill entirely intact — and it is unpaid taxes, not loan balances, that cause reverse mortgage foreclosures.

New Jersey runs three programmes that overlap, and since 2025 homeowners 65 and over apply for all three on one form:

• Senior Freeze (the Property Tax Reimbursement) — reimburses the difference between your current bill and your base year, effectively freezing what you pay as assessments rise.
• ANCHOR — broader property tax relief with a higher benefit for older homeowners.
• Stay NJ — the newest, aimed specifically at homeowners 65 and over, reimbursing a share of the property tax bill subject to an income cap.

One application, the PAS-1, now covers all three for homeowners 65 and over or on Social Security Disability; younger ANCHOR applicants still file separately. Eligibility rules and amounts change annually, so check the current year's figures with the New Jersey Division of Taxation rather than relying on what a neighbour told you.

Work out what you actually net after all three before deciding how much of your proceeds you need. A borrower who is fully claiming their relief sometimes discovers the monthly gap they were trying to close is smaller than they thought.

What "enough equity" looks like in New Jersey

New Jersey equity positions are generally strong, particularly in Bergen, Morris and Monmouth counties where long-held homes have appreciated substantially. Values in the northern counties push against the $1,249,125 FHA lending limit often enough that pricing a proprietary reverse mortgage alongside a HECM is worth doing rather than assuming.

The other New Jersey pattern worth naming: a lot of homeowners here refinanced into very low rates during 2020 and 2021. If that is you, a standard reverse mortgage would retire that rate, and a reverse second mortgage that leaves it in place is usually the better structure.

Counseling in New Jersey

Counseling is required federally and available by phone or in person from agencies serving New Jersey. You may use any HUD-approved agency — we do not choose your counselor and receive no part of the fee. Find one at hud.gov/findacounselor or by calling 1-800-569-4287.

What the session actually covers, and how to get your money's worth from it.

The rest is the same everywhere

Beyond the above, a New Jersey reverse mortgage works the way it works nationally. You keep the title. There is no monthly mortgage payment for as long as you live there and meet your obligations. The loan is non-recourse, so neither you nor your heirs can ever owe more than the home sells for. Any existing mortgage is paid off at closing unless you use a second-lien product.

• How a reverse mortgage actually works
• Whether you qualify
• What it costs
• Every option compared, including the ones we do not sell

Licensed in New Jersey

Robert Erath, NMLS #297076, is licensed to originate in New Jersey through United Mortgage Corp, NMLS #1330. Verify either licence independently at nmlsconsumeraccess.org — you should do that with every originator you speak to, not just this one.