New York adds its own rules on top of the federal ones
Most states simply follow the federal HECM programme. New York does not. Reverse mortgage lending here is overseen by the New York Department of Financial Services, and Real Property Law § 280, § 280-a and § 280-b, together with the Department's own reverse mortgage regulation, layer additional requirements on top of HUD's.
Two of them change how your file actually runs:
- Counseling cannot be skipped. Federal rules require it for every HECM, and New York adds its own notice telling you where to find a counselor. You may take the session by telephone rather than in person, but there is no New York reverse mortgage without it. We think this is the right rule.
- Two three-day periods. Under the Department of Financial Services' rules, no lender may ask you to sign a commitment within three days of your application, and once you have signed a commitment you have three more days to cancel it. You may still owe for work already done, such as the appraisal. Neither period can be waived. Anyone pressing you to compress either is telling you something about themselves.
New York also requires disclosures beyond the federal set. You will see more paperwork here than a borrower in Florida sees. That is the trade for the protection.
Property taxes are the risk that matters most in New York
New York carries among the heaviest property tax burdens in the country, and on Long Island and in Westchester the bills are heavier still. That matters more here than the interest rate does, because failing to pay property taxes is the leading cause of reverse mortgage foreclosure — not the loan balance, not the interest, the tax bill.
Before you apply, find out whether you are already claiming everything you are entitled to:
- Enhanced STAR — for homeowners 65 and older within an income limit that is adjusted annually. Materially larger than Basic STAR, and a great many eligible seniors are still on Basic without realising there is an upgrade.
- The Senior Citizens Exemption — a locally adopted reduction in assessed value for owners 65 and over, income-tested, filed with your assessor on form RP-467 and renewed every year. Each county, town, village and school district decides whether to offer it and sets its own income ceiling, so the figure in Nassau is not the figure in Westchester. New York City calls it SCHE. It stacks with Enhanced STAR.
- County and town-level senior exemptions, which vary by municipality and are frequently unclaimed.
If those still leave the bill uncomfortable, say so on the first call. A LESA — a set-aside from your own proceeds that pays the taxes and insurance for you automatically — removes that failure mode entirely. It reduces the cash you receive. In a high-tax county it is frequently worth it.
What "enough equity" looks like in New York
New York equity positions tend to be strong, which is the good news: a Long Island or Westchester homeowner who bought decades ago often has more than enough equity to clear an existing mortgage comfortably. Downstate values also mean the $1,249,125 FHA lending limit binds more often here than in most states — if your home is worth appreciably more than that, ask about a proprietary reverse mortgage before assuming a HECM is the answer.
Co-ops are the New York-specific complication. A HECM cannot be placed on a co-op, because you own shares rather than real property. Since 2022 New York law has allowed a proprietary reverse mortgage on a co-op from lenders approved by the Department of Financial Services, but few lenders offer one and the terms differ from a HECM. If you are in a co-op, ask us: we can tell you whether a co-op reverse mortgage is available for your building and help you get one. Condominiums are eligible for a HECM if the project has FHA approval.
Counseling in New York
Counseling is required for every New York HECM and may be taken by telephone. Agencies serving the state are listed at HUD's directory below. 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 York 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 York
Robert Erath, NMLS #297076, is licensed to originate in New York 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.
What this estimate is, and what it is not
These figures are an illustration for planning only — not a loan offer, not a commitment to lend, and not a guarantee of what you will receive. Your real numbers depend on a completed appraisal, the expected interest rate on the day your FHA case number is assigned, your existing mortgage payoff, and a HUD financial assessment. A reverse mortgage is a loan that must be repaid, not a government benefit. You remain responsible for property taxes, homeowners insurance and upkeep, and the loan can become due if you stop meeting those obligations.