Reverse Mortgages

V.S.A. tit. 8, ch. 200, subch. 7

in effect

8 V.S.A. § 10701 Definitions

10701. Definitions As used in this subchapter, the term “reverse mortgage loan” means a loan that: (1) is a loan in which the committed principal amount is secured by a mortgage on residential property owned by the borrower; (2) is due upon sale of the property securing the loan or upon the death of the last surviving borrower or upon the borrower terminating use of the real property as a principal residence or upon the borrower’s default; (3) provides cash advances to the borrower based upon the equity or the value in the borrower’s owner-occupied principal residence; and (4) requires no payment of principal or interest until the entire loan becomes due and payable. Added 2009, No. 53, § 4; amended 2021, No. 105 (Adj. Sess.), § 283, eff. July 1, 2022; 2025, No. 142 (Adj. Sess.), § 30, eff. July 1, 2026.

8 V.S.A. § 10702 Counseling

10702. Counseling Prior to accepting an application for a reverse mortgage loan, a person shall refer every borrower to counseling from an organization that is a housing counseling agency approved by the U.S. Department of Housing and Urban Development and shall receive certification from the counselor that the borrower has received in-person, face-to-face counseling. However, if the borrower cannot or chooses not to travel to a counselor and cannot be visited by a counselor in their home, telephone counseling shall be provided by counseling agencies that are authorized by the Department. The certificate shall be signed by the borrower and the counselor and include the date of counseling; the name, address, and telephone number of both the borrower and the organization providing counseling; and shall be maintained by the holder of the reverse mortgage throughout the term of the reverse mortgage loan. Added 2009, No. 53, § 4; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 284, eff. July 1, 2022; 2025, No. 142 (Adj. Sess.), § 31, eff. July 1, 2026.

8 V.S.A. § 10703 Annuities

10703. Annuities No person shall require an applicant for a reverse mortgage loan to purchase an annuity as a condition of obtaining a reverse mortgage loan. No person shall: (1) offer an annuity to the borrower prior to the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement; (2) refer the borrower to anyone for the purchase of an annuity prior to the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement. Added 2009, No. 53, § 4; amended 2025, No. 142 (Adj. Sess.), § 32, eff. July 1, 2026.

8 V.S.A. § 10704 Limitation on reverse mortgage loan programs

10704. Limitation on reverse mortgage loan programs No person shall issue a reverse mortgage loan unless it is a lender approved by the federal Department of Housing and Urban Development (HUD) to enter into a loan insured by the federal government and the reverse mortgage loan complies with all requirements for participation in the HUD Home Equity Conversion Mortgage Program or other similar federal reverse mortgage loan program from time to time created and is insured by the Federal Housing Administration or other similar federal agency or is a government sponsored enterprise reverse mortgage loan. Added 2009, No. 53, § 4; 2025, No. 142 (Adj. Sess.), § 33, eff. July 1, 2026.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/200Fetched: 10/21/2026