Reverse Mortgage in New Freedom, PA

A reverse mortgage lets homeowners aged 62 or older borrow against their home equity without making monthly principal and interest payments, but it is still a loan that grows over time and must be repaid. If you live in New Freedom and are weighing a Home Equity Conversion Mortgage, this page covers how it works, the HUD-approved counseling you must complete first and the ongoing obligations that come with it in Pennsylvania.

Ready to talk it through?

Call to speak with a licensed loan officer about reverse mortgage in New Freedom. Programs vary by borrower, property and investor.

Call (888) 912-6746 Apply Online Now

Older homeowners in New Freedom

38%Owner households 65+

33%Homes with no mortgage

$370,900Median home value

27Reverse mortgages in York County (2024)

In New Freedom, 38% of owner-occupied homes are headed by someone 65 or older, and 33% of owner-occupied homes have no mortgage. Lenders reported 27 reverse mortgages in York County in 2024.

How a HECM reverse mortgage works

A reverse mortgage converts part of your equity into funds you can use, while the debt is repaid later from the home itself. Because interest and mortgage insurance accrue on the balance, the amount owed grows over time and the equity left for you or your heirs shrinks.

The HECM program is insured by the Federal Housing Administration, and the youngest borrower must be 62 or older. The home must be your primary residence and meet FHA property standards. Any existing mortgage is typically paid off from the loan proceeds at closing. Whether a reverse mortgage fits depends on your health, plans, other income and goals for the house, so it deserves careful thought.

Start hereApply Online Now

Start your application in a few minutes. A licensed loan officer reviews it and follows up with your options.

Takes a few minutes
Reviewed by a licensed loan officer
No obligation to proceed

Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Counseling first, then payout choices

HUD requires every HECM borrower, and in many cases a non-borrowing spouse, to complete a session with an independent HUD-approved housing counselor before applying. The counselor explains costs, alternatives such as downsizing or a home equity loan, and how the loan could affect your estate and public benefits. You receive a certificate when you finish.

Once you move forward, you choose how to receive funds. Options can include a lump sum, fixed monthly advances for as long as you live in the home, monthly advances for a set period, a line of credit or a mix. Availability depends on the loan structure, and some choices limit how much you can draw in the first year.

Who this tends to fit

You would like a line of credit available for future expenses such as home modifications or care at home
You want to pay off an existing mortgage to remove a required monthly principal and interest payment
You are a homeowner aged 62 or older buying a new primary residence through HECM for Purchase
The youngest borrower on title is 62 or older and plans to stay in the home long term
You can comfortably keep paying property taxes, homeowners insurance and maintenance

Local offices and Pennsylvania rules to know

Pennsylvania property tax relief: Under the Taxpayer Relief Act, owner-occupied primary residences (and qualifying farmsteads) can receive a homestead/farmstead exclusion that lowers school property taxes; homeowners apply through their county assessment office.

Your ongoing duties and what happens to the home in New Freedom

A reverse mortgage does not relieve you of homeownership costs. You must keep paying property taxes, homeowners insurance and any flood insurance or association dues, and you must maintain the home in reasonable repair. Falling behind on these obligations can put the loan into default and may lead to foreclosure. Lenders review your finances during the application to judge whether you can keep up, and some borrowers are required to set aside funds for taxes and insurance.

When the loan comes due, the home is usually sold to repay it, or heirs may pay it off and keep the property. HECMs are non-recourse loans, so the amount owed generally cannot exceed the home's value at the time it is sold.

Before you call

Recent property tax bills and your homeowners and flood insurance declarations
Notes on how you would prefer to receive funds: line of credit, monthly advances, lump sum or a mix
Dates of birth for every owner and for any spouse who will live in the home
The current balance and statement for any existing mortgage or lien on the home
Income documents such as Social Security, pension and retirement account statements

Questions New Freedom borrowers ask about reverse mortgage

Why is HUD-approved counseling required?

A reverse mortgage is a complex decision with long-term effects on your finances and estate. HUD requires a session with an independent, HUD-approved counselor before you apply so you understand how the loan works, what it costs, how the balance grows and what alternatives exist. The counselor does not work for the lender. You will receive a certificate showing you completed counseling, which the lender needs before moving forward.

Do I still have to pay anything on a reverse mortgage?

You are not required to make monthly principal and interest payments while you meet the loan terms, but you are responsible for property taxes, homeowners insurance, any flood insurance, association dues and home maintenance. These obligations continue for the life of the loan. If you fall behind, the loan can go into default and the home could be at risk of foreclosure, so budget for them carefully.

Will a reverse mortgage affect my government benefits?

Loan proceeds are generally not treated as income, but how they interact with needs-based benefits such as Medicaid or Supplemental Security Income depends on how and when you use the funds. Money kept in a bank account could count as an asset. Social Security and Medicare are generally not affected. Ask your HUD-approved counselor, a benefits specialist or an elder law attorney, and for tax questions talk to a tax professional.

What protections exist for a spouse who is not on the loan?

HUD rules provide protections for an eligible non-borrowing spouse, often a spouse who is younger than 62 when the loan closes. If certain conditions are met and the spouse is named in the loan documents, they may be able to stay in the home after the borrower dies, as long as they keep up with taxes, insurance and upkeep. They cannot draw additional funds. Ask the counselor and lender to explain these rules for your situation.

Talk to a licensed loan officer

Get answers about reverse mortgage for a home in or around New Freedom. Subject to credit approval; programs vary.