The Lowdown on Reverse Mortgages Rules and Restrictions

  • Borrower must be age 62 or older
  • No monthly payment is required
  • Must obtain co-op board approval in most cases
  • Proceeds can be used for any purpose
  • No financial reports, credit history or medical reports required
  • Loan can be disbursed in the form of a lump sum, line of credit or a monthly payment option
  • Loan must be paid back upon the death of the borrower, if the borrower moves out or sells the home
  • Loan amounts vary based on age of the borrower; interest rates and adjusted value of the property; and geographic location of the home.
  • Single borrowers and older applicants qualify for higher loan amounts
  • Remember that reverse mortgages are not for everyone
  • Certain mortgage restrictions are attached to government loans

Related Articles

NYC's Old Property Tax Exemption Program Gets a Makeover

Gov. Cuomo Pushes 'Affordable New York' to Replace 421-a

HDFC's Proposed Regulations Shake Up Co-op Shareholders

It Would Mean Some Co-ops Getting More Tax Breaks While Others Might Be Losing Theirs

Financing Your Property's Energy-Efficiency Projects

Two Options Are Available