New York has the most reverse-mortgage-specific statutory environment of any U.S. state. The 2026 federal HECM lending limit of $1,249,125 applies (HUD Mortgagee Letter 2025-22); on top of it, New York layers Banking Law §6-r, Real Property Law §§280, §280-a, §280-b, a mortgage recording tax, and active oversight from the New York Department of Financial Services. How reverse mortgages work covers the structural basics.
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What reverse mortgage rules are specific to New York?
New York's reverse-mortgage law has three layers, all enforced by the New York Department of Financial Services (NY DFS).
- Banking Law §6-r authorizes federally insured HECMs (FHA-insured reverse mortgages) for New York borrowers and is the primary state-level HECM authorization. NY DFS issues advertising rules, underwriting standards, and counseling requirements under it (3 NYCRR Part 79).
- Real Property Law §280 governs reverse mortgages on residential property where the loan is not federally insured — the statutory home for proprietary jumbo product in New York.
- Real Property Law §280-a sets parallel rules for HECM-type loans on one-to-four-family residences and reaches subordinate-loan structures.
- Real Property Law §280-b addresses general reverse-mortgage consumer protections that apply across both HECM and proprietary products in New York.
NY DFS regulation 3 NYCRR Part 79 implements these statutes: pre-application disclosure requirements, a mandatory in-person counseling option (the borrower may waive for phone counseling under specified conditions), advertising standards, and prohibited practices. Surviving-spouse protections in the RPL sections above reinforce the federal HUD ML 2015-15 non-borrowing-spouse deferral floor.
Mortgage recording tax is the largest New York-specific closing cost: the state imposes a basic mortgage tax of $0.50 per $100 of secured principal, with additional special taxes and local surcharges in many counties (New York City adds roughly 1.8% to 2.8% depending on loan size). Recording fees themselves are administered by the County Clerk.
Jumbo note (state-specific): FAR's HomeSafe program admits at age 60 in New York, not the age-55 floor that applies in most states. This is a program-level New York exception. The other live jumbo programs (Platinum Preserve, SecureEquity+) may keep different floors in New York — confirm the current parameter sheet with the lender or your counselor.
How much can you borrow with a reverse mortgage in New York?
New York's downstate metros sit well above the $1,249,125 federal HECM cap; the jumbo programs cover what HECM cannot. The cap applies to FHA case numbers assigned on or after January 1, 2026 (HUD ML 2025-22). A 70-year-old New York borrower with a paid-off $900,000 home sees a principal limit factor near 50–55% at current HECM rates. Equity above the federal limit is unreachable through a HECM — that is the gap the jumbo section addresses. Run the figures at /calculator.
New York's mortgage-recording tax and high downstate values weigh on its state suitability score, which sets the state against the rest of the country on standard-HECM fit.
Do you need counseling for a reverse mortgage in New York?
Every New York HECM borrower completes a HUD-approved counseling session. Find a counselor on the HUD HECM Counselor Roster or call 1-800-569-4287. NYC and Long Island schedule within 1–2 weeks; upstate availability varies. Sessions run $125 to $200. How to find and prepare for a counselor →
What about jumbo in New York?
Manhattan, much of Brooklyn, the North Shore of Long Island, and lower Westchester carry median home values above the $1,249,125 federal cap, which makes New York one of the most common states for proprietary jumbo reverse mortgages. The live jumbo programs extend to a $4M loan value, with the age-60 New York floor on HomeSafe noted above. The trade is statutory non-recourse plus the FHA backstop (HECM) against a higher private cap (jumbo). HECM vs. jumbo decision-making → and the program parameter cards.
FAQ
Does New York require in-person counseling?
The lender must offer an in-person counseling option under 3 NYCRR Part 79. The borrower may elect phone counseling under specified conditions, but in-person availability must be on the table. The certificate is valid for 180 days.
How much is the New York mortgage recording tax on a reverse mortgage?
The state basic mortgage tax is $0.50 per $100 of secured principal. Most counties add a special additional tax and a local tax; New York City adds roughly 1.8% to 2.8% of the secured amount depending on loan size and property type. Mortgage recording tax is itemized at closing and is by far the largest New York-specific cost.
Why does HomeSafe require age 60 in New York but age 55 elsewhere?
The age-60 floor in New York is a program-level decision by FAR (the lender behind HomeSafe), set against the state's reverse-mortgage regulatory environment. It is not a New York statute. The other live jumbo programs may keep different floors; confirm the current parameter sheet before assuming eligibility.
Sources
- HUD Mortgagee Letter 2025-22: 2026 FHA HECM lending limit ($1,249,125), effective January 1, 2026
- New York Banking Law §6-r: authorization of federally insured reverse mortgages (HECM) in New York
- New York Real Property Law §280 (proprietary reverse mortgages), §280-a (HECM-type loans on one-to-four-family residences), §280-b (cross-product reverse-mortgage consumer protections)
- 3 NYCRR Part 79: New York Department of Financial Services regulation implementing Banking Law §6-r and RPL §§280–280-b (disclosure, counseling, advertising, prohibited practices)
- New York Tax Law Article 11: mortgage recording tax (basic, special additional, additional, and NYC-specific surcharges)
- HUD HECM Counselor Roster and HUD Handbook 4000.1, Section II.B: HECM program requirements and counseling
- FAR HomeSafe published parameter sheet: age-60 minimum in New York (state-specific program rule)