Reverse Mortgages in Massachusetts
If you're 62 or older, your Massachusetts home equity can work for you. Turn your home equity into cash with no monthly principal or interest payment — or use an FHA HECM for Purchase to buy your next primary residence in Massachusetts.
Massachusetts Reverse Mortgage at a Glance
An FHA-insured Home Equity Conversion Mortgage (HECM) made in Massachusetts must also meet Massachusetts General Laws Chapter 167E, Section 7. Instead of making monthly principal and interest payments to the lender, you access your home equity, and the loan becomes due and payable only when a maturity event occurs — such as the last surviving borrower passing away, selling or conveying title, or no longer occupying the home as a principal residence.
| Feature | FHA HECM & Massachusetts Rule |
|---|---|
| Minimum Age | Youngest borrower must be at least 62 at closing for an FHA HECM (24 CFR 206.33). While M.G.L. c.167E s.7(a) sets a statutory minimum age of 60 for state programs, FHA HECM rules require 62. |
| Property Requirement | Must be your principal residence (24 CFR 206.39). Eligible properties include 1- to 4-unit homes (where you occupy one unit), HUD-approved condominiums, and certain manufactured homes. |
| Existing Mortgages | You must own the home outright or have a mortgage balance low enough to be paid off at closing with HECM proceeds. |
| Monthly Principal & Interest | No monthly principal or interest payment is required for as long as you live in the home as your principal residence and meet your loan obligations. |
| 2026 HECM Limit | $1,249,125 maximum claim amount statewide for case numbers assigned in 2026 (HUD Mortgagee Letter 2025-22, up from $1,209,750 in 2025; confirm current limits when applying). |
| Payment Plan Options | Receive funds as a line of credit, monthly tenure payments, monthly term payments, a single lump sum, or a combination of monthly payments and a line of credit (HUD Handbook 4235.1). |
| Your Ongoing Obligations | Pay property charges on time — including local Massachusetts property taxes and hazard insurance — and maintain the home in good repair (24 CFR 206.205). |
| Mandatory Counseling | You must complete counseling with a counselor on HUD's HECM Counselor Roster and, under M.G.L. c.167E s.7(e), complete a counseling program approved by the Executive Office of Aging and Independence. |
| 7-Day Cooling-Off Period | Under M.G.L. c.167E s.7(d)(2), an applicant is not bound for 7 days after accepting the lender's written commitment in writing. |
Three Ways to Use a Reverse Mortgage in Massachusetts
Massachusetts homeowners and buyers age 62 and older use reverse mortgages in three main ways. Every reverse mortgage offered in the Commonwealth must be made under a program reviewed and approved by the Massachusetts Commissioner of Banks.
| Option | Best For | How It Works |
|---|---|---|
| HECM (Traditional) | Staying in your current Massachusetts home | Pays off any existing mortgage at closing and lets you access remaining equity through a line of credit, monthly disbursements, a lump sum, or a combination, with no required monthly principal or interest payment. |
| HECM for Purchase | Downsizing or relocating in Massachusetts | Lets buyers 62 and older purchase a new principal residence and finance part of the purchase price with an FHA HECM in a single closing, while bringing the rest as a down payment. |
| Proprietary Reverse Mortgage | Higher-value homes above the HECM limit | A private, non-FHA reverse mortgage offered by certain lenders. In Massachusetts, any proprietary reverse mortgage program must be reviewed and approved by the Division of Banks under M.G.L. c.167E s.7. |
Common Massachusetts Reverse Mortgage Uses
Eliminating a Monthly Mortgage Payment
Use HECM proceeds at closing to pay off an existing first mortgage or home equity loan so you no longer owe a monthly principal and interest payment while you live in the home.
Buying a Right-Sized Massachusetts Home
Use a HECM for Purchase to move into a single-level home, a HUD-approved condo, or a town closer to family in Massachusetts without taking on a monthly principal and interest payment.
Supplementing Retirement Cash Flow
Set up a line of credit or monthly tenure or term disbursements to help cover living expenses, healthcare, or aging-in-place home updates.
Planning With a Non-Borrowing Spouse
For an FHA HECM, all borrowers must be 62 or older, while HUD rules provide a deferral period after the borrower's death for an Eligible Non-Borrowing Spouse who continues to meet occupancy and loan requirements.
Keeping Up With Property Charges
You remain responsible for local property taxes, hazard insurance, and home maintenance. Qualifying Massachusetts seniors can also check local assessor exemptions to help manage property tax bills.
Protecting Your Estate & Heirs
An FHA HECM is a non-recourse loan under 24 CFR 206.27(b)(8): neither you nor your heirs have personal liability for the debt, and the lender cannot obtain a deficiency judgment if the home sells for less than the loan balance.
Understanding Costs, Disclosures & Prepayment Rules
Unlike a traditional Massachusetts home equity loan or HELOC, a reverse mortgage does not require monthly principal and interest payments while you occupy the home as your principal residence. Instead, interest and fees are added to the loan balance over time. For a full breakdown of upfront and ongoing charges, read our guide to reverse mortgage closing costs in Massachusetts.
| Cost or Rule | How It Works in Massachusetts |
|---|---|
| Interest Rate | Interest accrues on the funds you receive. Rates change daily; our team can help you compare quotes across participating wholesale lenders. |
| Closing Costs & FHA Mortgage Insurance | HECM loans include third-party closing costs, an origination fee, and FHA mortgage insurance premiums. Ask your lender for an itemized estimate before applying. |
| Plain-Language Written Disclosures | Under M.G.L. c.167E s.7(d), the lender must give you plain-language written materials before making the loan covering fees, prepayment rights, and a statement on possible tax, estate, and government-benefit effects. |
| Recourse vs. Non-Recourse Disclosure | Under M.G.L. c.167E s.7(d)(1), the lender must disclose in writing whether the loan is recourse or non-recourse. All FHA-insured HECMs are non-recourse under 24 CFR 206.27(b)(8). |
| Prepayment Without Penalty | Under M.G.L. c.167E s.7(d)(4), you have the right to prepay a Massachusetts reverse mortgage in whole or in part at any time without penalty. |
| Ongoing Property Charges | You must keep paying local property taxes, hazard insurance, and applicable condo or HOA fees, and keep the property in good repair. |
Massachusetts Chapter 167E Protections & Homestead Rules
Massachusetts General Laws Chapter 167E, Sections 7 and 7A establish strict consumer protections for reverse mortgage borrowers in the Commonwealth, enforced by the Massachusetts Division of Banks and applied to mortgagees through Chapter 183, Section 67. Homeowners should also understand how a Massachusetts Declaration of Homestead and Massachusetts senior property tax exemptions fit into their retirement plan.
| Massachusetts Law or Rule | What It Means for You |
|---|---|
| Division of Banks Program Approval (c.167E s.7) | Every reverse mortgage loan in Massachusetts must be made under a program reviewed and approved by the Commissioner of Banks. |
| Approved Counseling Requirement (c.167E s.7(e)) | A lender may not make a reverse mortgage until it receives written notice that the borrower completed a reverse mortgage counseling program approved by the Executive Office of Aging and Independence (in addition to HUD-roster counseling for a HECM). |
| Section 7A Protections for Lower-Income / Lower-Asset Borrowers | If your gross income is below 50% of HUD area median income AND your assets (excluding the home) are under $120,000, M.G.L. c.167E s.7A requires that you affirmatively opt in in writing and receive written certification from an approved third-party counselor that counseling on the appropriateness of the loan was given in person, by synchronous real-time video conference, or by telephone. A loan made without required Section 7A counseling has unenforceable terms. |
| 7-Day Commitment Cooling-Off Period (c.167E s.7(d)(2)) | You are not bound by the loan for 7 days after you accept the lender's written commitment in writing. |
| Truth in Lending & Right of Rescission (c.167E s.7(b) & c.140D) | State reverse mortgage disclosures and rights apply in addition to the Massachusetts Truth in Lending law (M.G.L. c.140D), including the right of rescission. |
| Due-and-Payable Events (24 CFR 206.27(c) & c.167E s.7(c)) | A HECM becomes due and payable when the last borrower dies (subject to deferral for an Eligible Non-Borrowing Spouse), all title is conveyed, the home ceases to be a borrower's principal residence, all borrowers are absent for more than 12 consecutive months due to physical or mental illness, or the borrower defaults on property charges or mortgage obligations. |
| Massachusetts Homestead Declaration (M.G.L. c.188) | A Massachusetts homestead declaration ($125,000 automatic; $1,000,000 declared, or $1,000,000 per qualifying 62+ owner under a Section 2 elderly declaration) protects equity against many unsecured creditors. It is creditor protection, not a property tax break, and under c.188 s.3(b)(3) it does not stop a lender from enforcing a mortgage you signed. |
Planning With Adult Children or Heirs?
Under 24 CFR 206.27(b)(8), an FHA HECM is non-recourse: the borrower has no personal liability, and the lender can enforce the debt only through the sale of the property with no deficiency judgment. While the loan is not yet due, you may sell the home for at least the lesser of the loan balance or the appraised value (24 CFR 206.125(c)). When a HECM becomes due and payable and the home is worth less than the balance, HUD rules allow the borrower, estate, or heirs to sell at a price set by HUD that does not exceed 95% of the appraised value (24 CFR 206.125(a)(2)(ii)), and no one owes the shortfall. Schedule a call so you and your family can walk through the numbers together.
Check Reverse Mortgage EligibilityHow to Get a Reverse Mortgage in Massachusetts
- 1
Review Your Equity, Goals & Property Charges
Whether you want to pay off an existing Massachusetts mortgage, set up a line of credit, or use a HECM for Purchase, our team helps you check eligibility and compare options across participating lenders.
- 2
Complete HUD & Massachusetts-Approved Counseling
Meet with a counselor on HUD's HECM Counselor Roster, and confirm your counseling also satisfies the Massachusetts requirement of a program approved by the Executive Office of Aging and Independence. Borrowers who fall under M.G.L. c.167E s.7A complete counseling in person, by live video conference, or by telephone and sign a written opt-in.
- 3
Apply, Review Plain-Language Disclosures & Appraisal
Submit your application with your counseling certificate, receive Massachusetts plain-language disclosures under c.167E s.7(d), and complete an FHA appraisal.
- 4
Use Your 7-Day Commitment Window, Close & Receive Funds
Under M.G.L. c.167E s.7(d)(2), you are not bound for 7 days after accepting the lender's written commitment in writing. After closing (and any applicable rescission period), existing liens are paid off and your funds become available.
Related Resources
Reverse Mortgage Closing Costs in Massachusetts
Understand HECM origination fees, FHA mortgage insurance, third-party closing costs, and how costs are paid.
Read Guide
Massachusetts Home Equity Loans & HELOCs
Compare home equity loans and HELOCs with a reverse mortgage if you prefer or qualify for monthly payments.
Read Guide
Massachusetts Senior Property Tax Exemptions
See how local property tax exemptions and deferrals work for older Massachusetts homeowners.
Read Guide
Massachusetts Homestead Exemption Guide
Learn how the $1,000,000 declared homestead and Section 2 elderly declaration work under M.G.L. c.188.
Read Guide
Massachusetts Home Loan Options
Compare Massachusetts loan programs for buying, refinancing, and tapping into home equity.
Read GuideFrequently Asked Questions
Straightforward replies to the common questions we hear from Massachusetts homebuyers. Can’t find what you’re looking for?
Talk to an ExpertFor an FHA-insured HECM, the youngest borrower must be at least 62 at closing (24 CFR 206.33), and the property must be your principal residence (1- to 4-unit home, HUD-approved condo, or eligible manufactured home). You must own the home outright or have a balance low enough to pay off at closing, complete counseling with a HUD-roster counselor (Massachusetts also requires a counseling program approved by the Executive Office of Aging and Independence), and be able to pay ongoing property taxes, hazard insurance, and home maintenance.
Under M.G.L. c.167E s.7, all reverse mortgages in Massachusetts must be made under programs approved by the Commissioner of Banks, include plain-language written disclosures on fees, recourse status, and tax or benefit effects, allow prepayment without penalty, and give the applicant a 7-day period after accepting the written commitment in writing during which the applicant is not bound. Under Section 7A, if a borrower has gross income below 50% of HUD area median income and assets (excluding the home) under $120,000, the borrower must opt in in writing and complete counseling in person, by live video conference, or by phone with an approved third-party organization, or the loan terms are unenforceable.
According to HUD Mortgagee Letter 2025-22, the current published FHA HECM maximum claim amount for case numbers assigned in 2026 is $1,249,125 across all of Massachusetts, up from $1,209,750 in 2025. Because FHA updates limits annually, confirm the current figure with your lender when you apply.
Yes. The FHA HECM for Purchase program allows buyers age 62 and older to buy a new principal residence in Massachusetts and finance part of the purchase price with a reverse mortgage in a single transaction. You bring the required down payment from your own funds or home sale proceeds and make no monthly principal or interest payments as long as you live in the home and pay property taxes, insurance, and maintenance.
When the last surviving borrower dies (and no Eligible Non-Borrowing Spouse qualifies for a deferral period), the HECM becomes due and payable under 24 CFR 206.27(c). Because an FHA HECM is non-recourse under 24 CFR 206.27(b)(8), neither the borrower nor the heirs have personal liability for the debt, so the lender can collect only through the sale of the home. Heirs can sell the home and keep any equity above the loan balance, and if the home is worth less than the balance, HUD rules (24 CFR 206.125(a)(2)(ii)) allow a sale at a HUD-set price that does not exceed 95% of the appraised value.
A Massachusetts Declaration of Homestead under M.G.L. c.188 provides creditor protection against many unsecured creditors (up to $125,000 automatically or $1,000,000 with a recorded declaration, and up to $1,000,000 per qualifying 62+ owner under a Section 2 elderly declaration). However, it is not a property tax exemption, and under M.G.L. c.188 s.3(b)(3) mortgages are an explicit exception, so a homestead declaration neither blocks you from taking out a reverse mortgage nor stops a lender from enforcing a mortgage you signed.
See What Your Massachusetts Home Equity Could Do for You
Compare your Massachusetts reverse mortgage options — whether you want to eliminate a monthly mortgage payment, supplement retirement cash flow, or purchase your next home.