Many older Americans are turning to reverse mortgages. Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), are a federally insured HUD program for senior homeowners 62 years of age or older. Whether you’re seeking money for medical treatment, a home improvement, long-term care insurance, or supplement cash flow, reverse mortgages allow older consumers to convert the equity in their home to cash while retaining home ownership. Above all, you do not have to make a payment for life as long as you live in the home.
If you want a reserve mortgage, counseling from an approved agency, like the Southeast CDC, is required. Call Southeast CDC at 410.342.3234 for an appointment.
If you live outside of Baltimore City, a $125 fee is charged when and only if the reverse mortgage/HECM loan closes, out of the proceeds of the loan. We will begin to charge this fee on and after 1/1/2013. For residents of Baltimore City there is no charge for counseling.
To qualify for a reverse mortgage, you must be at least 62 years old and have paid off all or most of your home mortgage. Income, employment and credit are not a factor and no medical tests or medical histories are required. With a reverse mortgage, you remain the owner of your home just like when you had a forward mortgage. You are still responsible for paying your property taxes and homeowner insurance and for the upkeep of your property.