New York homeowners who are 62 or older can borrow against their home value with a reverse mortgage, and cooperative apartments come with extra state rules. The federal Home Equity Conversion Mortgage (HECM) is what most people use, and it converts equity to cash with no monthly mortgage payments. In New York, 672 HECMs were finalized in fiscal year 2025, and 619 were finalized from October 2025 to August 2026, carrying a median home value of $740,000. Among those, the median initial principal limit sat at $340,400, and 73 reached the $1,249,125 federal HECM lending limit for 2026.
Cooperative apartments under New York Banking Law Section 6-o
For borrowers 62 or older, New York Banking Law Section 6-o governs reverse loans on cooperative apartments, not single-family homes. You must hand in a written counseling certification before a lender commits to a reverse loan on a co-op. You get proof that a counselor with cooperative housing training, either New York or HUD-approved, walked through the loan details with you. A counseling session helps you see the costs before you commit, and New York is home to 14 HUD-approved counseling agencies.
If you have a New York co-op reverse loan, can you cancel it or fix an issue?
Banking Law Section 6-o gives you a 3-day window after closing to cancel your reverse co-op loan. After signing, the 3-day right of rescission lets you undo the loan. At closing, your lender must provide 2 copies of the notice explaining your right to cancel, so the process is clear to you.
Another feature of a reverse co-op loan is that it's non-recourse. Apart from the co-op shares or membership used as collateral, the lender can't pursue the borrower's or heirs' other assets. The lender has to notify you and your designee in writing when the loan comes due because of an event. You then get 45 calendar days to cure, or correct the problem, before the loan can be ended.
Get as much as 50% off through the senior citizens property tax exemption in New York
In every state, federal rules for reverse mortgages mean you must keep paying homeowners insurance and property taxes. The home must also be your main residence, and you have to maintain it well. Local tax relief is important because getting behind on property tax can push a HECM into default.
The senior citizens property tax exemption in New York isn't mandatory for local governments. To qualify, owners usually need to be 65 or older, and income limits along with other conditions apply. Each locality chooses a maximum income limit from $3,000 to $50,000 for the full 50% exemption. Most New York communities set a March 1 application deadline. Deadlines vary in some cities and counties, so check with your assessor to make sure you don't miss the date.
How the New York State Department of Financial Services handles lender approval and complaints
Banks, credit unions, licensed mortgage bankers and exempt entities are the only lenders allowed to offer reverse co-op loans under Banking Law Section 6-o. The Superintendent of Financial Services also has to approve every lender for reverse mortgage lending. Before you apply, it's smart to confirm this approval is in place. For October 2025 through August 2026, 87 active reverse mortgage lenders across New York insured federal HECMs, with 39 refinances alongside 10 purchase loans.
The New York State Department of Financial Services takes consumer complaints about banks, mortgages and foreclosure, among other financial products. You can file a complaint by form or call the hotline at (800) 342-3736.
