A New York reverse mortgage can be similar to a traditional mortgage transaction when it comes to the application process. However when it comes to a New York reverse mortgage loan, the lenders will not look at one's credit rating, or income and this is one of the biggest benefits to senior citizens because most seniors retire with an income much less then the income which they lived on while working.

In order to qualify for a New York reverse mortgage, the youngest of the borrowers must be at least sixty-two years of age. Borrowers also have a couple of choices when it comes to how they will receive their funds from the New York reverse mortgage loan. They can receive it in a lump sum, monthly payments, or a combination of both. This has been a very attractive benefit to many borrowers because for most New York reverse mortgage loans this money can be used for any purpose.

If there is already an existing mortgage on the home at the time of the New York reverse mortgage, this amount will be paid off in the transaction. By totally eliminating the existing mortgage payment, freeing up the rest of the cash in the loan a new income stream is created for the borrower.

Another great advantage that a New York reverse mortgage loan provides is financial counseling from a source which is approved by the Department of Housing and Urban Development. The counseling is meant as a safeguard for the borrower and his or her family, in order to make sure the borrower completely understands what a reverse mortgage is and how one is obtained.