With a reverse mortgage Massachusetts law says your lender must get written proof that you completed independent counseling before the loan closes. With a reverse mortgage, you borrow against your home and don't make a mortgage payment each month. In fiscal year 2025, 542 households across the state took out these federal loans. The $1,249,125 national lending limit was reached by 33 borrowers in higher‑priced communities from October 2025 through August 2026.
Counseling and your 7‑day right to cancel under Massachusetts law
Once you sign the loan papers, you get a 7‑day right of rescission from state law. This right of rescission gives you a legal cooling‑off period to cancel the loan for any reason. Chapter 167E and Chapter 183 of the Massachusetts reverse mortgage laws, together with regulation 209 CMR 55.00, set these rules.
Before the closing, your lender must get a written statement from a third‑party counselor proving you were counseled. You can meet in person, by video call or over the phone. Massachusetts is home to 6 federally approved counseling agencies.
Could Clause 41A and the $2,820 circuit breaker credit help with property taxes?
The answer is yes: your local tax bills can be lowered by both state programs. Property taxes and homeowners insurance are payments you must make under federal reverse mortgage rules. The home also has to be your main residence, and you must maintain it well. These programs are important because falling behind on property taxes could put your loan into default.
Senior Circuit Breaker tax credit
Once you turn 65, you may file for the Senior Circuit Breaker tax credit. This state income tax credit is refundable and based on the real estate taxes you paid on your main home in Massachusetts. For tax year 2025, the most you can get is $2,820. Even if you owe 0 income tax, you can still get it.
Deferring property taxes with Clause 41A
Under Clause 41A, Massachusetts law lets homeowners 65 and older put off all or some of their property taxes. To be eligible for a Clause 41A property tax deferral, the gross receipts of you and your spouse can't go over $20,000. A city or town may adopt a local rule that lifts the income cap to match the circuit breaker amount.
A town lien gets placed on your home when you defer your taxes. A lien gives someone a legal right to be paid from your property's value when the house is sold. The tax deferral lien ranks above other claims, with one exception: a recorded reverse mortgage that isn't a shared appreciation instrument. One rare loan type, a shared appreciation instrument, collects part of your home's future increase in value. So a typical reverse mortgage stays ahead of the deferral lien.
Complaints and lender oversight at the Massachusetts Division of Banks
Help is available when a problem arises because state regulators keep an eye on reverse mortgage lenders in Massachusetts. You can file a complaint through the Massachusetts Division of Banks, also called the DOB. Complaints about mortgage lenders, brokers and originators go through the DOB Consumer Assistance Unit inside that agency. You don't have to deal with a lender by yourself.
