Reverse mortgages in New Jersey
A reverse mortgage lets homeowners of retirement age turn part of their home’s value into cash while they keep living in the home and keep the title. A HECM is for homeowners 62 and over; a proprietary reverse mortgage may be open from 55 in some cases. Read how it works, and the cautions, before you choose one.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Start with the facts
Read how it works and the cautions, then talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Why work with a New Jersey lender
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our New Jersey office is at 121 NJ-36, Suite 230, West Long Branch, and our licensed branch is at 1 Yorktowne Drive, Manalapan (branch NMLS ID #2103558).
Before you apply, counseling with an independent counselor is required; for a HECM, the counselor comes from HUD’s list. A licensed loan officer in Monmouth County can go through the loan with you and your family first.
How a reverse mortgage works
No monthly mortgage payment is required. Instead, interest and other charges are added to the balance each month, so the balance grows and the equity left in the home shrinks. The loan comes due when the last borrower dies, sells or moves out permanently.
A HECM, the FHA-insured reverse mortgage, is for homeowners 62 and over; because of the FHA insurance, you or your heirs never owe more than the home is worth when it is sold. A proprietary reverse mortgage is a private program without FHA insurance, for higher-value homes and some younger homeowners.
The typical home in New Jersey is worth about 454,400 dollars, against about 332,700 dollars for the United States as a whole, and about 64 of every 100 occupied homes in the state are lived in by their owners (U.S. Census Bureau, American Community Survey 2020-2024, tables B25077 and B25003).
What to weigh before you choose a reverse mortgage
The plain facts about the cost and the risk.
- It is a loan, and it must be repaid.
- The balance grows. Interest and charges are added each month; on a HECM, that includes the FHA mortgage insurance.
- Your equity goes down. As the balance grows, the share of the home’s value that is yours shrinks.
- You must keep living in the home as your main residence.
- You must keep paying property taxes, homeowner’s insurance and any association dues.
- You must keep the home in repair.
- If you do not, the loan can become due, and you could lose the home to foreclosure.
- The loan comes due when the last borrower dies, sells, moves out permanently or breaks the terms. Under the FHA-insured program, a stay in a care facility longer than HUD allows counts as moving out.
- Counseling is required before you apply, with an independent counselor; for a HECM, one from HUD’s list.
- There are closing costs. On a HECM they include an FHA mortgage insurance premium and an origination fee within HUD’s limits.
- It may affect needs-based benefits.
- It has tax and estate consequences. Ask a tax or estate adviser about your own situation.
- It is not for everyone. If you plan to move soon, or are not sure you can keep up the taxes and insurance, it is probably not the right loan.
- It leaves less for your heirs. If you want to leave the home free of debt, a reverse mortgage works against that.
Questions from New Jersey homeowners
Do you offer reverse mortgages in New Jersey?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License. You can check it on NMLS Consumer Access (opens in a new tab).
Where are you located?
Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, and our licensed branch is at 1 Yorktowne Drive, Manalapan, NJ 07726. Call 732-686-9999 to talk with a licensed loan officer.
Who can get a reverse mortgage?
A HECM is for homeowners 62 and over who live in the home as their main residence. A proprietary reverse mortgage may be open to homeowners from 55 in some cases.
Do I still pay property taxes?
Yes. Throughout the loan you must keep paying property taxes, homeowner’s insurance and any association dues, and keep the home in repair. If you do not, the loan can become due.
What happens to the home when I am gone?
Heirs can keep the home by repaying the loan, or sell it and keep any value left after the loan is repaid.
Want to talk through a reverse mortgage?
Call and go through it with a licensed loan officer, with your family if you wish.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.