Experience Excellence with New Jersey’s Top Reverse Mortgage Lender

For over 20 years, All Reverse Mortgage, Inc. (ARLO™) has helped New Jersey homeowners access their home equity through HUD-approved HECM and jumbo reverse mortgages. As New Jersey’s #1 Rated Reverse Mortgage Lender, we hold an A+ BBB rating with perfect 5-star reviews and zero complaints — a record that earned us recognition as a BBB Torch Award for Ethics Finalist three years running.

As a HUD-approved direct lender and proud member of the National Reverse Mortgage Lenders Association (NRMLA), we specialize exclusively in reverse mortgages — it’s all we’ve done since 2004. That singular focus is especially valuable in New Jersey, where property values in Bergen County communities like Alpine, Saddle River, and Englewood Cliffs, along the Shore in Spring Lake, Bay Head, and Deal, and in sought-after suburbs like Short Hills, Summit, and Princeton regularly exceed the $1,249,125 HECM lending limit. Our team introduced the first fixed-rate jumbo reverse mortgage in 2008, giving us deep expertise in helping New Jersey homeowners with higher-value properties evaluate both HECM and jumbo options side by side.

Whether your goal is to eliminate monthly mortgage payments, create a financial safety net with a growing line of credit, or access equity for retirement planning, we’re here to help you choose the right program with competitive rates and lower costs. Let us show you the difference two decades of dedicated experience can make.

New Jersey reverse mortgage statistics showing 1.87 million homeowners age 62 and older, 737 reverse mortgages closed in the last 12 months, 45 lenders statewide, and an average home value of $552,000

Top 10 Reverse Mortgage Cities in New Jersey
1   Jersey City
2   Sea Girt
3   Brick
4   Bergenfield
5   Tom’s River
6   Asbury Park
7   Cresskil
8   Mountainside
9   Millburn
10   Point Pleasant

Data by MCA (January 2026)

Latest New Jersey Reverse Mortgage Statistics

StateHomeowners Age 62+Reverse Mortgages Closed Last 12 MonthsLenders in New JerseyAvg. Home Value
New Jersey1.87 Million73745$552,000

How this data was derived: Reverse mortgage counts reflect FHA-insured HECM loans endorsed over a rolling 12-month period (Dec 2024–Nov 2025) using HUD HECM Snapshot data. Active lenders represent unique FHA sponsor numbers with at least one endorsed loan during this period. Estimated homeowners age 62+ are based on U.S. Census ACS 5-year owner-occupied households age 65+ as a conservative proxy. Home values are sourced from Zillow’s Home Value Index (latest available).

Top Reverse Mortgage Lenders in New Jersey

LenderBBB RatingAccreditedYears in BusinessCustomer Rating (0–5)% Positive ReviewsComplaintsSource
All Reverse Mortgage, Inc. (ARLO)A+YES214.94/599.0%0Source
American Pacific MortgageFNO281.75/535.0%6Source
CrossCountry Mortgage, LLC.FYES221.43/529.0%303Source
Fairway Independent MortgageA+YES294.51/590.0%26Source
Finance of America Reverse LLC (FAR)A+YES223.71/574.0%36Source
Goodlife Home LoansA+YES13N/A (Not enough reviews)N/A (Not enough reviews)1Source
Guaranteed RateA+YES262.25/5450%45Source
Guild Mortgage Company LLCA+NO651.55/531.0%73Source
HighTechLending IncA+YES194.94/599.0%1Source
Liberty Home Equity Solutions Inc.A+NO221.00/520.0%1Source
Longbridge Financial LLCA+YES133.77/575.0%34Source
Luminate BankNRNO84NANANASource
MCM HoldingsA+YES27NANANASource
The Money HouseNRNO28NANA0Source
Movement Mortgage, LLCA+NO184.43/589.0%92Source
Mutual of Omaha MortgageA+YES123.31/566.0%65Source
New American FundingA+YES264.65/593.0%147Source
Plaza Home Mortgage IncA+YES242.67/553.0%6Source
Smartfi Home LoansA+YES6N/A (Not enough reviews)N/A (Not enough reviews)0Source
South River Mortgage, LLCA+NO63.79/576.0%14Source
Source: Data compiled from https://www.rminsight.net/hecm-lenders-september-2025/ RMInsight (Top 20 HECM Lenders, October 1, 2025 and Better Business Bureau reviews updated as of December 10, 2025)

New Jersey Reverse Mortgage Lending Limits

New Jersey, known as “The Garden State,” is home to nearly 9.3 million people, of whom over 1.87 million are homeowners aged 62 and older. This means that well over half a million New Jersey residents may qualify for a reverse mortgage, offering a way to access their home’s equity.

As of January 2026, the average home value in New Jersey is $552,000, which is comfortably below the HECM reverse mortgage lending limit of $1,249,125. This allows many homeowners to take advantage of their home’s value through a reverse mortgage.

New Jersey’s history is rich and storied, from its role as one of the original 13 colonies to General Washington’s famous crossing of the Delaware River in 1776. The state earned the nickname “the Crossroads of the American Revolution” and became the third state to ratify the U.S. Constitution and the first to ratify the Bill of Rights. Its prime location between New York and Philadelphia fueled industrial growth in the 19th century and suburban expansion in the 20th.

Today, New Jersey’s economy is driven by pharmaceuticals, finance, chemical development, telecommunications, and tourism. Atlantic City remains a popular destination for entertainment, while communities across the state — from the Jersey Shore to the Delaware Valley — attract retirees seeking to stay close to family while enjoying a lower cost of living than neighboring New York City.

If you’re a homeowner aged 62 or older in New Jersey, a reverse mortgage could be a valuable financial tool for your retirement. Whether you’re looking to eliminate monthly mortgage payments or access additional funds from your home’s equity, All Reverse Mortgage, Inc. (ARLO™) is here to help. We’re ready to answer your questions and guide you through the process.

Essential Protections for New Jersey Borrowers

New Jersey provides key consumer protections for reverse mortgage borrowers to ensure transparency and safeguard your interests. Here’s what you need to know:

  1. Mandatory HUD-Approved Counseling — Before applying for a reverse mortgage in New Jersey, you are required to complete a HUD-approved counseling session. This step ensures you fully understand the loan terms, potential risks, and alternative options.
  2. Prohibition on Tied Products — New Jersey law prohibits lenders from requiring you to purchase additional financial products, such as annuities or life insurance, as a condition for obtaining a reverse mortgage. This prevents unnecessary financial pressure during the process.
  3. Borrower Notifications — Lenders in New Jersey must provide clear written disclosures explaining the borrower’s obligations, including maintaining property taxes, homeowners insurance, and home upkeep. Failure to meet these obligations can result in loan default.
  4. Licensed and Regulated Lenders — Reverse mortgage lenders in New Jersey must be licensed and comply with the New Jersey Department of Banking and Insurance (DOBI) regulations. This ensures you are working with reputable professionals who meet strict consumer protection standards.
  5. Equity Preservation Protections — New Jersey has safeguards in place to ensure that borrowers or their heirs retain any remaining equity after the reverse mortgage is repaid. This non-recourse feature means you’ll never owe more than the home’s value at the time of repayment.
  6. Foreclosure Protections — In New Jersey, borrowers are protected by the state’s foreclosure process, which includes mandatory notices and opportunities to resolve defaults, such as unpaid taxes or insurance, before foreclosure proceedings begin.

Industry Update — February 2026: NRMLA has formally requested revisions to New Jersey Senate Bill 264, a proposed law that would require reverse mortgage counseling to be conducted in-person by a New Jersey–domiciled agency and would extend the rescission period to 7 days beyond the 3 days already mandated under federal law. In its letter to Senator Shirley K. Turner, NRMLA pointed out that only two HUD-approved counseling agencies in New Jersey currently offer reverse mortgage counseling — making the bill’s five-agency requirement impossible to meet. NRMLA also noted that requiring in-person sessions would create hardships for seniors with mobility limitations or language needs who currently have the right to choose telephone counseling under the federal HECM program. NRMLA has coordinated a letter-writing campaign with its New Jersey members to help ensure the bill is amended before advancing.

HUD-Approved Reverse Mortgage Counseling Agencies in New Jersey

NameAgency IDAddressPhoneWeb Site
CREDIT.ORG - NEW JERSEY BRANCH9079511 White St, Eatontown, New Jersey, 07724-1524(201) 365-4197credit.org
GARDEN STATE CONSUMER CREDIT COUNSELING, INC. D/B/A/ NAVICORE SOLUTIONS84870200 US Highway 9, Manalapan, New Jersey, 07726-3072(732) 409-6281navicoresolutions.org
NAVICORE SOLUTIONS - MANALAPAN, NJ82226200 US Highway 9, Manalapan, New Jersey, 07726-3072(732) 409-6281navicoresolutions.org
The information presented in this table was obtained from the U.S. Department of Housing and Urban Development (HUD) at https://answers.hud.gov/housingcounseling as of January 23, 2026.

Did you know? New Jersey does not currently mandate in-person counseling — though Senate Bill 264 (discussed above) proposes to change that. For now, you have the right to choose. Visit our counseling page for a list of phone-based counseling agencies, and you can conduct your required counseling from the comfort of your home.

New Jersey Reverse Mortgage FAQs

Q.

Will a reverse mortgage affect my Senior Freeze (Property Tax Reimbursement) benefits in New Jersey?

No, having a reverse mortgage will not affect your eligibility for the Senior Freeze Program (Property Tax Reimbursement). The Senior Freeze reimburses eligible seniors and disabled residents for property tax increases above the amount they paid in their base year. Because the Senior Freeze is a reimbursement and not a deferral, it is fully compatible with a reverse mortgage. To qualify, you must meet the program’s age (65+), residency, income, and homeownership requirements as determined by the New Jersey Division of Taxation. You can continue receiving your Senior Freeze reimbursement while having a reverse mortgage on your home.
Q.

Will a reverse mortgage affect my ANCHOR Property Tax Relief benefit in New Jersey?

No, the ANCHOR (Affordable New Jersey Communities for Homeowners and Renters) property tax relief program provides a direct benefit payment to eligible homeowners and is not a tax deferral. Because ANCHOR is a benefit, not a lien or deferral on the property, it is fully compatible with a reverse mortgage loan. Eligibility for ANCHOR is based on your income and whether you owned and occupied your home as your principal residence on October 1st of the applicable tax year. Having a reverse mortgage does not change any of those qualifying factors.
Q.

Does New Jersey have a property tax deferral program, and can I participate if I have a reverse mortgage?

New Jersey enacted the Senior Citizens’ Property Tax Deferral Act, but the state has never funded or implemented the program. As a result, there is currently no active state-level property tax deferral program available to New Jersey homeowners. If a deferral program were to become available in the future, participation would not be permitted while you have a reverse mortgage, as all reverse mortgage programs prohibit borrowers from deferring property taxes. You must pay your property taxes on time when they are due to keep the loan in good standing.
Q.

Does New Jersey tax reverse mortgage proceeds?

A reverse mortgage is a loan, and the proceeds received are borrowed funds. Borrowed funds are generally not taxable at the federal or state level. New Jersey does not treat reverse mortgage proceeds as income, but you should always consult your tax advisor for guidance specific to your situation.
Q.

How does a reverse mortgage affect NJ FamilyCare (Medicaid) eligibility?

Having a reverse mortgage loan on your home in and of itself does not usually affect your eligibility for NJ FamilyCare (Medicaid). It is our understanding that NJ FamilyCare eligibility is determined by household income, available assets, household size, age, and residency. Funds available to you in your reverse mortgage line of credit should not be factored into that equation. However, if you advance funds from a reverse mortgage loan to your bank account and leave the funds there, there is a possibility you could compromise your eligibility. It is important to consult with an elder law attorney before getting a reverse mortgage if you’re receiving or planning to apply for NJ FamilyCare (Medicaid).
Q.

What is New Jersey’s Medicaid Estate Recovery Program, and how does it relate to reverse mortgages?

New Jersey’s Medicaid Estate Recovery Program (NJ MERP) seeks reimbursement from the estates of deceased Medicaid recipients aged 55 and older for long-term care costs paid by the state. After death, the state may file a lien or claim against the estate to recover those costs. When you have a reverse mortgage on your home, it is a secured debt that is repaid first from the sale proceeds upon your death. Any Medicaid Estate Recovery claim would be secondary to the reverse mortgage lien. This means that both the reverse mortgage lender and the state may have claims against the home’s equity when you pass away, potentially leaving less for your heir(s). Given New Jersey’s high cost of long-term care, it is especially important to consult with an elder law attorney if you are receiving or may need Medicaid benefits.
Q.

Does my spouse need to be on the reverse mortgage in New Jersey?

The short answer is no. Your spouse does not have to be a borrower on the reverse mortgage loan. That said, your spouse must always be involved in the loan process, even if they will be a non-borrowing spouse. Reverse mortgage loan guidelines require that, at a bare minimum, your spouse must do the counseling with you and sign specific documents acknowledging the reverse mortgage loan and what their rights are (if any) as a non-borrowing spouse. It is strongly preferred that your spouse be a co-borrower on any reverse mortgage loan you take out, as this will provide the best-case scenario for them should you predecease. Additionally, not all programs have the same rules and protections for non-borrowing spouses. For example, on the Home Equity Conversion Mortgage (HECM), there is a deferral option for “Eligible” non-borrowing spouses, whereas Proprietary or “Jumbo” reverse mortgages do not.
Q.

Can I place my reverse mortgage in a living trust in New Jersey?

Maybe. Unlike traditional or “forward” mortgages, reverse mortgage loans may be closed in the name of the trust. It is a common practice in the traditional lending space to ask homeowners with a trust to transfer title out of the trust to close on their new loan, then require them to transfer title back into the trust after their loan is consummated, causing hassle and additional costs for the homeowner. Reverse mortgage loans do not permit the transfer of property title after the loan is made without first obtaining the loan servicer’s approval. In order to keep the property in the trust, the full trust itself must be reviewed (excluding the advanced health care directives, Powers of Attorney (unless being used for an incapacitated borrower), Last Will and Testament, as they are not necessary) to determine that the trust meets the FHA program guidelines. In our experience, the overwhelming majority of standard revocable family trusts meet the requirements, but until the full trust is reviewed, we, as a lender, cannot advise whether your trust is eligible.
Q.

What consumer protections does New Jersey provide for reverse mortgage borrowers?

New Jersey has strong consumer protections for reverse mortgage borrowers under the New Jersey Home Ownership Security Act and related state regulations. The state requires that borrowers receive mandatory counseling from a HUD-approved agency before closing, prohibits lenders from requiring borrowers to purchase other financial products (such as annuities) as a condition of the loan, requires clear disclosure of all loan terms and costs, and mandates a right of rescission period after closing during which borrowers can cancel the transaction. Additionally, New Jersey law requires that borrowers receive a written disclosure explaining that a reverse mortgage is a complex financial product and encouraging them to involve trusted family members or advisors in the decision-making process.
Q.

Are there any prepayment penalties on reverse mortgages in New Jersey?

No. There is never any prepayment penalty permitted on a reverse mortgage loan. Federal law prohibits it, and New Jersey state law reinforces that prohibition. You can pay off in full or partially at any time, with no prepayment penalty.
Q.

Can I rent out a room in my home if I have a reverse mortgage?

Yes, you can rent out a room or even multiple rooms as long as you continue to live in the home as your primary residence. The entire property cannot be rented. For example, if you have a 3-bedroom home, it is permissible to rent out two of the bedrooms so long as you reside in the 3rd. Additionally, if your property has an Accessory Dwelling Unit (ADU) or in-law quarters, you are not permitted to reside in that structure and must live in the main home. In the current New Jersey housing market, it is becoming increasingly common for senior homeowners to rent out a room or two to supplement their income, particularly given the state’s high property tax burden.
Q.

How does a reverse mortgage compare to a Home Equity Line of Credit (HELOC) in New Jersey?

Key differences:

Feature Reverse Mortgage HELOC
Monthly payments None required Required (interest + principal)
Age requirement 62+ Any age (18+)
Income verification Yes (financial assessment) Yes (strict debt-to-income)
Upfront costs High ($20K–$30K) Low ($0–$500)
Best for Eliminating payments, long-term cash flow Short-term needs, renovations
Q.

Does New Jersey have special requirements for reverse mortgage counseling?

Reverse Mortgage Counseling is mandatory for all borrowers and their spouses for all reverse mortgage programs. Whether you are doing a HECM loan or a Proprietary loan, counseling will always be required. The Department of Housing and Urban Development (HUD) approves counseling agencies to offer counseling on the HECM program, and individual lenders set their own lists of approved agencies authorized to conduct counseling for those Proprietary programs. Not all HECM counseling agencies are approved for these Proprietary programs, but there is some overlap: a HUD-approved HECM counseling agency may also be approved for a specific Proprietary product. New Jersey does not impose additional counseling requirements beyond those required by HUD, but the state’s consumer protection laws do emphasize the importance of borrowers fully understanding the terms of the loan before proceeding.
Q.

What happens to my reverse mortgage if I temporarily leave my home?

When you have a reverse mortgage loan, the property must be your primary residence. Additionally, you cannot have an extended absence of more than 12 consecutive months for any reason, and any consecutive absence of 60 days or more must be communicated to your loan servicer, along with your plan to ensure the home will be cared for during your temporary absence. Temporary absences are permitted as long as they fall within these parameters, and you communicate with your loan servicer if the absence will exceed 60 consecutive days. For example, a 2-week or even month-long vacation is perfectly fine, and no advanced communication is required. This is especially relevant for New Jersey homeowners who travel to warmer states like Florida during the winter months.
Q.

Can I use reverse mortgage proceeds to pay off debt?

Reverse mortgage proceeds can be used for any legal purpose you see fit, so you can definitely use the proceeds you receive from a reverse mortgage to pay off debt, including credit card balances. However, if you are likely to run up the credit card balances again after paying them off, you’ve actually made your situation worse, not better. If a reverse mortgage can provide you with a long-term, sustainable solution that eliminates your credit card balances and gives you the resources to avoid running them up again, it could be a good option to consider.
Q.

What is the 2026 HECM lending limit in New Jersey?

The HECM lending limit is the same nationwide and has been that way for well over a decade. For 2026, the maximum FHA HECM reverse mortgage lending limit is $1,249,125, up from $1,209,750 in 2025. There are many markets across New Jersey where home values exceed the FHA lending limit, particularly in Bergen, Essex, Morris, and Monmouth counties. You can still apply for a HECM loan if your home value exceeds the current lending limit. The lending limit is the max value that can be considered for your loan calculations. This means that if your home is appraised at $1,400,000 and you apply for a HECM loan, the value used for loan calculations will be $1,249,125 in 2026. Additionally, there are Proprietary or “Jumbo” reverse mortgage programs that do not have the lending limit of the HECM program and can offer loan amounts up to $4,000,000, depending on your home value.

Ready to Unlock Your Home’s Equity?

As New Jersey’s #1 Rated Reverse Mortgage Lender, All Reverse Mortgage, Inc. (ARLO™) is here to provide trusted guidance, real-time rates, and expert support to help you make informed decisions.

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All Reverse Mortgage, Inc. is fully licensed by the New Jersey Department of Banking & Insurance (License #0509639), ensuring that you receive expert guidance every step of the way.

Get Your Reverse Mortgage Quote from New Jersey’s #1 Rated Reverse Mortgage Lender* or call (800) 565-1722 to speak with a licensed expert.

Other Areas of Interest in New Jersey

Brick Township Jackson Township Manchester Neptune Township Tom's River

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