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New Jersey is in that part of New England where property taxes and the cost of living is very high. For seniors the costs could really put the squeeze on fixed and no incomes. Reverse mortgages are one of the tools senior homeowners now turn to when they’d like to create an income. Home equity is a valuable asset and with a reverse mortgage can be turned into cash flow.

Part of a successful reverse mortgage deal is an experienced and reputable lender.

NJ FHA Lender Loan Limits

For the average homeowner regardless of state, the most popular reverse mortgage is the federally insured HUD Home Equity Conversion Mortgage, commonly called the HECM. A key factor in determining qualifications and suitability for lenders is the local FHA mortgage limits.

Because New Jersey has such high property values, almost every county in the state has an FHA limit well above the national average, some as much as $500,000 higher. Of course the highest limits exist in counties that cover or are near Newark and Edison.

HUD Lenders

The very popular HUD HECM is the primary reverse mortgage product in the country. For most senior homeowners the features provide sufficient cash equity, costs and terms. But the reverse mortgage industry is controversial for the scams and con artists that continue to find more innovative ways to dupe homeowners out of their money.

What you need to know about finding a lender:

  • HUD and the FHA are not mortgage lenders.
  • HUD provides free of charge an approved lender list.
  • Find the lender list online at the HUD website or get one from your mortgage counselor.
  • Never pay for a list of lenders.

State of New Jersey HECM

The State of New Jersey Housing and Mortgage Finance Agency offers the HUD HECM to qualified New Jersey seniors. Potential borrowers may get all the information from a fact sheet and a lender list specific to New Jersey borrowers.

Single Purpose Reverse Mortgage Lenders in New Jersey

Twenty-five states offer senior citizens homeowners a property tax deferral, a kind of single purpose product that is similar to a reverse mortgage. In New Jersey eligible seniors and other taxpayers may qualify for Homestead exemptions and tax credits, but this is not the same as a property tax deferral. The state is still working toward providing a product like this.

General Reverse Mortgage Providers Available to NJ Seniors

Amboy Bank

A local retail banking company, Amboy Bank offers a wide range of financial tools and services, including reverse mortgages. The company offers a number of popular reverse mortgages plus their own called the “Simply Better Reverse Mortgage.”

Bank of America

The mortgage division at Bank of America provides two reverse mortgage products for its customers: the HUD HECM and BOA’s proprietary Senior Equity Reverse Mortgage. When the federally insured product is too restrictive borrowers may opt for the less limiting Senior Equity Reverse.

Metrocities Mortgage

This is an experienced regional mortgage company and a HUD-approved lender.