Reverse Mortgages in New York

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.

This page is informational. We are not a New York-licensed lender, broker, or exempt organization under NY DFS, and we do not solicit applications or accept lead information.

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): Finance of America sets the minimum age for its HomeSafe program at 60 in New York, against 55 for certain HomeSafe products elsewhere, except Massachusetts and Washington, where it is 60, and North Carolina and Texas, where it is 62 (Finance of America, HomeSafe program page). Mutual of Omaha's SecureEquity rate sheet does not list New York among its approved states (Mutual of Omaha, SecureEquity brokered rate sheet effective September 9, 2026), and Longbridge offers Platinum only in select states, so confirm availability and the minimum age 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 HUD principal limit factor of roughly 35.0–41.5% at current HECM rates (across a 6.0–7.5% expected-rate planning range), about $315,000–$374,000 before closing costs; an estimate, not a quote. Equity above the federal limit is unreachable through a HECM — that is the gap the jumbo section addresses. Run the figures in the 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 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 13 based in New York as of October 7, 2026. They include two each in Melville and Rochester, with one in each of nine other cities; each sets its own fee, and the HUD HECM Counselor Roster or 1-800-569-4287 also finds agencies that counsel by phone. How to find and prepare for a counselor →

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