The Reverse Mortgage Loan For Seniors in Maryland and Virginia

Available exclusively to homeowners age 62 and older, a Maryland or Virginia reverse mortgage loan allows you to convert a portion of your home equity into monthly payments so you can live more comfortably in your own home, with greater financial flexibility.

What is a Maryland and Virginia Reverse Mortgage Loan?

The use of the term "Reverse Mortgage Loan" customarily reflects the option in which a senior Maryland or Virginia homeowner can receive equity disbursements on a selected basis to enhance the already existing income which the homeowner receives regularly from Social Security, pensions, and other forms of income.

Originally created in 1988 as the Home Equity Conversion Mortgage (HECM), product advances and improvements have transformed all three options available under the HECM program, including the Reverse Mortgage Loan, into an effective retirement financing tool.

Under this selection, as a senior Maryland or Virginia homeowner, you can take your proceeds as monthly advances for a set period of time; as a monthly stream of funds for as long as you live in your home; as a lump sum which limits first year access but which is then completely available beginning in the 13th month; or a combination of these options.

You choose the reverse mortgage plan that works best for your senior lifestyle.

As a senior Maryland or Virginia homeowner, a second option includes the creation of a HECM Home Equity Line of Credit. It is important to note that a HECM Line of Credit cannot be reduced or revoked because of market fluctuations in home value, as long as the terms of the loan are met. And the unused line of credit can increase annually to provide higher levels of borrowing power over time.

The third option provides for a unique opportunity to purchase a new home. Each of these products is illustrated more completely in other sections of this site.

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General Requirements For Maryland or Virginia Reverse Mortgage Loans

You must be 62 years of age or older and:

  • Own the property outright or have a small mortgage balance
  • Occupy the property as your principal residence
  • Meet the guidelines of the HECM Financial Assessment analysis. Not be delinquent on any federal debt
  • Participate in a consumer information session given by an approved HECM counselor
The following eligible Virginia property types must meet all FHA property standards and flood insurance requirements:

  • Single family home or 1-4 unit home with one unit occupied by the borrower
  • U.S. Department of Housing and Urban Development (HUD) approved condominium
  • Manufactured home that meets FHA requirements

Home Equity Loan Advantages For Seniors in Maryland and Virginia

  • The ability to use your home equity to help maintain a more comfortable standard of living, in your own home.
  • Tax-free* loan proceeds you can use however you choose. * Not tax advice. Consult a tax professional.
  • No monthly principal and interest mortgage payments. If you qualify and have an existing mortgage or Virginia home equity loan, the proceeds from the reverse mortgage must first pay off any existing mortgages - eliminating monthly mortgage payments NOTE: As the homeowner, you remain responsible for paying property taxes, homeowners insurance, homeowner's association dues, and normal property upkeep and maintenance. Failure to do so could require payment of the loan in full.
  • Uses for a Reverse Mortgage Loan

  • Delay collecting Social Security, for a larger monthly benefit
  • Pay for medical or long-term care costs
  • Pay off an existing mortgage to improve cash flow
    [note: All existing mortgages on the designated property must be paid off with the reverse mortgage loan].
  • Have your loan proceeds deposited to your checking account each month to increase your available cash, as long as you live in your home.