Maryland has its own Reverse Mortgage Loans Act
Maryland keeps the federal set — age 62, principal residence, counseling before application, financial assessment — and adds its own Reverse Mortgage Loans Act on top. Three parts of it matter to you:
- Every reverse mortgage on a Maryland home must follow the HECM rules, including proprietary loans that are not FHA-insured. A jumbo reverse here follows the same federal rules a HECM does, apart from the fee cap, the loan limit and the insurance.
- You get a written checklist when you apply. The lender must hand you a checklist of the questions to put to your counselor: how leaving early affects the cost, whether a home equity line or a tax deferral would serve you better, and what the loan does to your taxes, your benefits and your heirs.
- No annuities, no steering. No lender may make you buy an annuity, a long-term care policy or any other financial product to get the loan, or refer you to one until the loan has closed and your right to cancel has passed.
One practical local difference: Maryland's recording and transfer costs are higher than in many states, which shows up in your closing costs. Ask for those to be itemised separately when you get your estimate, because a national average understates them here.
The Homeowners' Property Tax Credit is income-based, not age-based
Maryland's Homeowners' Property Tax Credit Programme caps property tax at a percentage of household income. The detail that catches people out is that it is not restricted by age — it is means-tested on household income and savings, and plenty of retired homeowners who would qualify never apply because they assume it is a programme for someone else.
Twelve counties and Baltimore City — Montgomery, Howard, Anne Arundel and Baltimore County among them — add a local supplement on top of the state credit, and you claim both on the same application, due October 1. Prince George's does not run a supplement; it has a separate credit for owners 65 and over who have lived in the home for ten years, applied for through the county.
Maryland also offers a Homestead Tax Credit that caps how fast your assessed value can rise year to year. It requires a one-time application, and a homeowner who has never filed it may be paying on an uncapped assessment without knowing.
Since property charge default is what actually costs people their homes under a reverse mortgage, sorting these out first genuinely reduces your risk.
What "enough equity" looks like in Maryland
Equity positions around the Washington and Baltimore corridors are generally strong, and in Montgomery and Howard counties values push toward the $1,249,125 FHA limit often enough to make a proprietary reverse mortgage worth pricing alongside a HECM.
Condominium ownership is common in the inner suburbs, and that brings the usual complication: a HECM requires the project to be FHA-approved. Single-unit approval exists and can sometimes be obtained during the file, but it adds time and is not guaranteed. Worth checking before anyone orders an appraisal.
Counseling in Maryland
Counseling is required and available from HUD-approved agencies serving Maryland, in person or by phone. You may use any HUD-approved agency — we do not choose your counselor and receive no part of the fee. Find one at hud.gov/findacounselor or by calling 1-800-569-4287.
What the session actually covers, and how to get your money's worth from it.
The rest is the same everywhere
Beyond the above, a Maryland reverse mortgage works the way it works nationally. You keep the title. There is no monthly mortgage payment for as long as you live there and meet your obligations. The loan is non-recourse, so neither you nor your heirs can ever owe more than the home sells for. Any existing mortgage is paid off at closing unless you use a second-lien product.
- How a reverse mortgage actually works
- Whether you qualify
- What it costs
- Every option compared, including the ones we do not sell
Licensed in Maryland
Robert Erath, NMLS #297076, is licensed to originate in Maryland through United Mortgage Corp, NMLS #1330. Verify either licence independently at nmlsconsumeraccess.org — you should do that with every originator you speak to, not just this one.
What this estimate is, and what it is not
These figures are an illustration for planning only — not a loan offer, not a commitment to lend, and not a guarantee of what you will receive. Your real numbers depend on a completed appraisal, the expected interest rate on the day your FHA case number is assigned, your existing mortgage payoff, and a HUD financial assessment. A reverse mortgage is a loan that must be repaid, not a government benefit. You remain responsible for property taxes, homeowners insurance and upkeep, and the loan can become due if you stop meeting those obligations.