Reverse Mortgages in Massachusetts

In Massachusetts, a homeowner 62 or older can convert part of their home equity to cash through a HECM reverse mortgage. Here's how the math works, what Massachusetts adds to the federal rules, and where to find a counselor.

The federal HECM rules apply in full, and the state adds its own counseling rule for lower-income borrowers: under Massachusetts General Laws Chapter 167E, Section 7A, such a borrower must opt in to the loan in writing, and by closing the lender must have a counselor's written certification that the borrower was counseled by an organization approved by the state's Executive Office of Aging and Independence.

The 2026 federal HECM lending limit of $1,249,125 applies in Massachusetts (HUD Mortgagee Letter 2025-22). For a structural primer on the product, see what a reverse mortgage is and how it works.

What reverse mortgage rules are specific to Massachusetts?

A counseling rule for lower-income borrowers. Under MGL c. 167E §7A, a borrower with gross income below 50% of the area median income and assets under $120,000, not counting the home, must opt in to the reverse mortgage in writing. By closing, the lender must have written certification that the borrower was counseled in person, by live video or by phone, by an organization approved by the Executive Office of Aging and Independence.

Borrower age floor. Federal HECM admits at 62. Massachusetts applies the same floor; there is no state overlay raising or lowering it.

Lender and originator oversight: Massachusetts Division of Banks. Originator licenses are verifiable through NMLS Consumer Access.

No state mortgage tax. Massachusetts charges only a flat per-document recording fee at the county registry of deeds ($150 for a mortgage under MGL c. 262 §38), plus a Community Preservation Act surcharge in municipalities that have adopted it. There is no percentage-based mortgage tax on the loan amount, unlike New York.

Surviving non-borrowing spouse. Massachusetts applies the federal HUD ML 2015-15 deferral framework through the loan note; no separate state statute codifies it.

How much can you borrow with a reverse mortgage in Massachusetts?

For a 70-year-old Massachusetts borrower with a paid-off home appraised at $650,000, the HUD principal-limit factor across a 6.0–7.5% expected-rate planning range returns roughly 35.0–41.5% of value before closing costs, about $228,000–$270,000 (an estimate, not a quote).

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For how Massachusetts ranks against the other 50 jurisdictions on standard-HECM fit, see the Massachusetts suitability score.

Do you need counseling for a reverse mortgage in Massachusetts?

Every Massachusetts HECM borrower completes a session with a counselor on HUD's HECM Roster before the lender may process the application (HUD Handbook 4000.1), and FHA's list of HECM counseling agencies shows six based in Massachusetts as of October 7, 2026. One is in each of Agawam, Auburndale, Hyannis, Quincy, Stoneham and Woburn; each sets its own fee, and the HUD HECM Counselor Roster or 1-800-569-4287 also finds agencies that counsel by phone. The counseling certificate is valid for 180 days from the date counseling was completed (HUD Handbook 4000.1).

What about jumbo in Massachusetts?

For a Massachusetts home appraised above the $1,249,125 federal HECM cap, proprietary jumbo programs are the alternative, with Massachusetts-specific limits. Finance of America's HomeSafe lends up to $4 million for certain products and sets a minimum age of 60 in Massachusetts (Finance of America, HomeSafe program page). Longbridge caps Platinum loans in Massachusetts at $2 million (Longbridge Financial, Platinum product page). Mutual of Omaha's SecureEquity rate sheet does not list Massachusetts among its approved states (Mutual of Omaha, SecureEquity brokered rate sheet effective September 9, 2026). None of these programs is FHA-insured or charges FHA mortgage insurance (each lender's product page). See the HECM vs. jumbo comparison.

Will my heirs be on the hook?

A HECM is non-recourse: your heirs and your estate will never owe more than the home is worth at the time of sale, even if the loan balance has grown past the home's value (12 USC §1715z-20). For the heir-side timeline and the four disposition options, see reverse mortgage due and payable.

What does the borrower still have to pay?

The FHA-insured HECM is a loan, not a government benefit. It removes the monthly principal-and-interest payment but does not remove the borrower's other obligations on the home. Throughout the life of the loan a Massachusetts HECM borrower must:

• Keep property taxes current. Municipal real-estate taxes are billed quarterly in most Massachusetts cities and towns. Non-payment is a default event under the HECM note.
• Maintain homeowners insurance. Standard hazard coverage plus, where applicable, flood insurance for properties in FEMA Special Flood Hazard Areas (relevant on Cape Cod, the South Shore, and parts of the North Shore). Non-payment of premiums is a default event.
• Occupy the home as a primary residence. Moving out for more than 12 consecutive months, whether into assisted living, into a child's home, or any other primary residence, triggers the loan's due-and-payable clause.
• Keep the home in reasonable repair. Significant deferred maintenance can trigger a property-charge default.

These are federal obligations under the HECM contract; the Massachusetts overlay does not change them.

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