If you are looking to reap the benefits of getting a reverse mortgage in Queens NY, this complete guide will help you through each step of the way.
Do you want to live your senior life to the fullest, enjoying the freedom to travel, cover medical expenses, or simply enhance your lifestyle without the worry of monthly mortgage payments? If the answer is yes, a reverse mortgage can be a great option for you.
If you have a home in Queens NY, and you want to tap into your home equity while still living comfortably in your beloved neighborhood, reverse mortgages can open a world of possibilities.
As a leading lender of HECM reverse mortgages, we have prepared this comprehensive guide to share with you our know-how on this type of financing. So, continue reading to learn everything you need to know about getting a reverse mortgage in Queens NY:
What is a Reverse Mortgage in Queens NY?
Before anything else, it’s important to understand what exactly are reverse mortgages, and what are the requirements that you will need to meet in order to qualify for them.
A reverse mortgage is a type of financing that allows you to borrow against the equity in your home without having to sell it or make monthly payments. Instead, the loan is repaid when you sell the house, move out permanently, or pass away. As a key requirement, you will need to be 62 or older in order to qualify.
Let’s explain this with a real-life scenario:
How Does a Reverse Mortgage in Queens NY Work?
Let’s say that you own a house in Queens that’s worth $300,000. You’ve paid off your regular mortgage, so you own the house fully. However, you don’t have much cash in the bank, and you’d need some extra money to live more comfortably in retirement.
Most lenders will let you borrow between 40% and 60% of your home’s value, with a cap of $1,209,750 according to the FHA lending limit for reverse mortgages in 2025. If you borrow 50% of the home’s value, this would potentially give you access to $150,000 in cash.
So, you take out a reverse mortgage in Queens NY, and you get $150,000 – either as a lump sum, as monthly payments, or as a line of credit. The good news is, you don’t have to pay anything back each month.
Instead, interest will be added to the loan balance over time. Interest will add up every year, meaning the loan will get a little bigger each time.
If you took the full $150k upfront, this is what will happen over time:
- Year 1: $150,000 loan + $7,500 interest = $157,500 balance
(Assuming 5% interest) - Year 2: $157,500 + $7,875 interest = $165,375 balance
- Year 3: $165,375 + $8,268 interest = $173,643 balance
You won’t have to pay anything out of pocket – instead, the loan will be repaid when you sell the house, you move out permanently, or you pass away.
You (or your family) repay the loan when:
What Are The Benefits of Getting a Reverse Mortgage in Queens NY?
So, what are some of the benefits that you can reap if you get a reverse mortgage in Queens NY? There are many – here are a few of them:
- Reduced financial stress – Since you won’t have to make monthly payments on the loan, this can significantly reduce any stress related to your finances. However, you will still have to pay property taxes, homeowner’s insurance, and maintenance costs.
- Tax-free cash – Because the money from the reverse mortgage is considered a loan and not income, you won’t have to pay taxes on it.
- No need to sell your property – Reverse mortgages allow you to remain the owner of your home without having to sell it in order to get some cash. This is especially beneficial in Queens, where property values tend to appreciate.
- Flexible use of funds – Another great benefit of getting a reverse mortgage in Queens NY is that you can use the money for a variety of purposes, from daily living expenses to home improvements or even travel.
- Growing your line of credit – If you choose to take the money as a line of credit, the unused portion grows over time. This means that you will be able to access more money in the future without reapplying or facing additional fees.
- No income or credit score requirements – And the best part is, as opposed to conventional loans or refinancing, you don’t have to show a minimum income or credit score requirements. You will just need to be 62 or older, and show lenders that you have sufficient home equity.
What Can I Use a Reverse Mortgage For?
If you are worried that getting a reverse mortgage in Queens NY means a lot of restrictions when it comes to its use, this is not the case. As we mentioned earlier, one of the main benefits is that it has a very flexible use of funds.
This means that you can use it for:
- Day-to-day expenses – You can use a reverse mortgage in Queens NY to cover your daily expenses, such as groceries and bills.
- Home renovations – If you need extra cash to renovate your home or make major repairs, a reverse mortgage can be a great option.
- Travel – You can also use the money to fulfill your life-long dreams of travel, or to simply enjoy fun and entertaining activities with your family.
- Debt consolidation – A reverse mortgage in Queens NY is also a great way to pay off high-interest debt, reduce your costs, and make your finances simpler.
- Medical expenses – Medical costs can be very high, so getting the extra cash to cover them can be absolutely necessary.
Essentially, you can use a reverse mortgage for many purposes – from helping family members or setting aside money for emergency funds, or simply to supplement your retirement income, it’s a flexible tool to support your financial needs.
How Much Money Can I Borrow With an HECM Reverse Mortgage?
So, how much money can you borrow if you are looking to secure a reverse mortgage in Queens NY? As we mentioned previously, most lenders will let you borrow anywhere from 40% to 60% of your home’s value, but there are a few factors that you will need to keep in mind before applying.
Your Age
You need to be older than 62 years, but the older you are, the more you can borrow. In addition, if there are multiple owners of the house, lenders will look at the age of the youngest borrower.
Your Home’s Value
Another factor that lenders consider when it comes to a reverse mortgage in Queens NY is the value of the home. The amount is based on your home’s appraised value or the FHA lending limit, whichever is lower.
As of 2025, the lending limit is $1,209,750, even if your home is worth more.
Current Interest Rates
The current interest rates also play a role when it comes to how much you can borrow in a reverse mortgage in Queens NY. Lower interest rates allow you to borrow more, while higher rates reduce this amount.
Mortgage Balance
In order for you to get a reverse mortgage in Queens NY, any existing mortgage or lien on the property must be paid off first with the reverse mortgage proceeds. The remaining balance is what you receive as cash.
Do I Still Own My Home With a Reverse Mortgage?
Yes, you still own your home with a reverse mortgage, just like you would with a traditional mortgage, and you can live in it as long as you want. However, instead of monthly payments, the loan balance will grow over time as interest is added.
Keep in mind that you will still need to continue paying property taxes, homeowner’s insurance, and maintain the property in good condition. The home also needs to be your primary residence.
FAQ
Will I have to make monthly mortgage payments?
No, you do not have to make monthly mortgage payments with a reverse mortgage. Instead, the loan balance grows over time as interest and fees are added.
The loan is repaid when you sell the house, move out permanently, or pass away. However, you must continue to pay property taxes, homeowner’s insurance, and maintain the property to avoid foreclosure.
How is a reverse mortgage in Queens NY repaid, and when is it due?
A reverse mortgage in Queens, NY is repaid when you sell the house, move out permanently, or pass away.
The loan balance, including interest and fees, is typically settled using the proceeds from the home’s sale. If the loan balance exceeds the home’s value, FHA insurance covers the difference. Your heirs can choose to sell the house or pay off the loan to keep the property.
Can I leave my home to my heirs with a reverse mortgage?
Yes, you can leave your home to your heirs with a reverse mortgage. When you pass away, your heirs have the option to repay the loan (usually by refinancing or using other funds) and keep the property.
Alternatively, they can sell the house, use the sale proceeds to pay off the loan, and keep any remaining equity. If the loan balance exceeds the home’s value, FHA insurance covers the difference.
What are the disadvantages of a HECM reverse mortgage?
The disadvantages of a HECM reverse mortgage include high fees and closing costs, increasing loan balance due to interest compounding, and reduced home equity for heirs.
You must maintain the property and pay taxes and insurance to avoid foreclosure. If you move out or pass away, the loan becomes due, possibly forcing a home sale. It may also affect Medicaid eligibility and other benefits.
What happens if my loan balance exceeds my home’s value?
If your loan balance exceeds your home’s value with a HECM reverse mortgage, FHA insurance protects you and your heirs. You’ll never owe more than the home’s market value when the loan is repaid.
If sold, the proceeds cover the debt, and FHA insurance pays the difference. Your heirs can choose to sell the house or pay off the loan at its current market value to keep the property.
Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.