When conducting consultations in Queens Village, one of the main points of curiosity for those inquiring about reverse mortgages is what exactly the mandatory consultation with HUD-approved counseling agencies entails. Recently, I explained to a client that this consultation is not just a formality, but a process that checks both financial situations and the ability to maintain the home. In this article, I will summarize the figures and conditions to be aware of when considering a reverse mortgage in Queens Village based on that experience.

According to Zillow data, as of February 28, 2026, the average home value in Queens Village is $761,078, which has increased by 5.9 percent over the past year. This figure suggests that Korean families who have lived in Queens Village for a long time, where single-family homes and townhouses are prevalent, likely have built up significant equity. One way to utilize this equity is through a reverse mortgage, which is available to homeowners aged 62 and older. Unlike a traditional mortgage, where payments are made monthly, the structure allows homeowners to receive funds from the lending institution in a lump sum, monthly payments, or a line of credit, with the principal and interest settled when the home is sold, the owner passes away, or the home is no longer used as the primary residence. Notably, Queens Village is recognized as a preferred area for Korean families due to several elementary and secondary schools rated well by GreatSchools, but since school district boundaries frequently change, it is advisable to verify the assigned school for a given address separately from the reverse mortgage application.

The HECM, guaranteed by the Federal Housing Administration, is a representative product and is the only type of reverse mortgage backed by the federal government, which is a favorable point. However, eligibility requirements must also be checked. Applicants must be at least 62 years old, the home must be their primary residence, if there is an existing mortgage balance, it must be at a level that can be paid off with the loan amount, and they must pass a financial capability assessment to ensure they can continue to pay property taxes and insurance premiums.

Before applying, one must go through the mandatory consultation with a HUD-approved counseling agency. The items checked during this consultation can be broadly categorized into three areas. First, the applicant's overall financial situation and ability to pay property taxes and insurance premiums; second, whether they fully understand the structure and costs of the reverse mortgage; and third, whether they have compared it to alternatives like downsizing or a home equity line of credit. While this is advantageous, it can be a burden to know that completing the consultation does not guarantee immediate approval.

In terms of costs, there are origination fees, an initial mortgage insurance premium of about 2 percent, an annual insurance premium of approximately 0.5 percent, and closing costs, making the initial costs higher than a traditional mortgage. Queens follows the New York City property tax system, where the tax assessment rate for 1-3 family homes for the 2025/26 fiscal year is 19.843 percent, and the assessed value is set at about 6 percent of the market value, resulting in an effective tax rate of about 1.19 percent compared to the actual market value. This property tax and insurance premium must continue to be paid by the homeowner even after receiving the reverse mortgage, and failure to do so can lead to a risk of default.

The advantages include the ability to create cash flow for living expenses or medical costs without monthly repayment burdens, and the non-recourse loan structure means that if the home value falls below the loan balance, heirs are not required to pay the excess due to FHA guarantees. Conversely, the downside is that over time, equity may decrease, potentially reducing the assets left for children. In New York, the population aged 65 and older makes up 18.9 percent of the total, which is higher than the national average, suggesting that such concerns will continue in areas like Queens Village where Korean families are concentrated.

Ultimately, the HUD consultation is not a cumbersome procedure but rather a safeguard for applicants. Given that reverse mortgage-related scams do exist, it is important to be cautious of any rush to proceed without consultation. This content is not investment or legal advice, and tax and mortgage conditions may vary by county and school district, so it is advisable to go through HUD consultation and discuss with family before making any actual decisions.