Vermont reverse mortgages let you borrow from your home equity without monthly loan payments, and state law stops unwanted insurance sales at closing. From October 2025 through August 2026, Vermont homeowners closed 34 of these loans, an increase from 30 in the 2025 fiscal year. The median home value for those borrowers was $449,500. Their median initial principal limit came to $218,510 at a median rate of 5.8125%. That limit is the starting amount of money you can borrow. Because there are 0 approved counseling agencies in Vermont, you'll learn how a reverse mortgage works over the phone during your counseling session.
The Vermont Property Tax Credit and the 24% senior credit can cut your bill
The Consumer Financial Protection Bureau has federal rules that mean you must continue to pay your property taxes and your homeowners insurance. The house must be your main home, and you need to keep it in good shape. Your loan can go into default if you fall behind on property taxes. Tax relief from Vermont helps reverse mortgage Vermont borrowers stay on track.
Education tax: up to $5,600; municipal tax: up to $2,400
If your home qualifies as a homestead, the Vermont Property Tax Credit helps with your bill. The house you own and use as your main residence counts as a homestead, unlike a vacation spot. The credit covers up to $5,600 of the state education tax part and $2,400 of the municipal part. For tax year 2025, your household income must stay at or below $115,400. You need to own and live in the home on April 1 and be a Vermont resident all year. Submit Form HS-122 and Schedule HI-144 by the tax deadline of April 15. For a $150 fee, you're allowed to file late through March 15 of the next year.
The Elderly or Permanently Disabled Tax Credit at 24%
Look on your state return for the Elderly or Permanently Disabled Tax Credit too. This credit is for older or disabled residents who receive only a small amount of tax-exempt retirement or disability money. Your federal credit is multiplied by 24% to get the Vermont credit. The more you save, the easier it is to keep satisfying your reverse mortgage requirements.
Does Vermont reverse mortgage law let a lender demand an annuity?
To obtain a reverse mortgage in Vermont, you're never required to buy an annuity. An insurance contract where you hand over cash upfront to receive future income is called an annuity. Nobody is allowed, under Section 10703 of Vermont law, to present you with an annuity until after closing and after your right to rescind is over. Your right to rescind is the brief period after signing when you can cancel the loan. During that period, no one may refer you to an annuity seller either. An update to this law from 2025 starts on July 1, 2026.
Checking lenders and submitting complaints through the Vermont Department of Financial Regulation
Any reverse mortgage lender in Vermont must submit a license application using the Nationwide Multistate Licensing System. Mortgage brokers and lenders are licensed by the Vermont Department of Financial Regulation under Chapter 73 of state banking law. From October 2025 to August 2026, just 12 active lenders insured loans here. To confirm that a lender or broker holds a Vermont registration, contact the Banking Division before you start your application. Call 802-828-3307 or email dfr.bnkconsumer@vermont.gov. They handle complaints about licensed mortgage providers, credit unions and state-regulated banks too.
