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Find the Best Reverse Mortgages in Baltimore, MD

Homeowners in Baltimore over the age of 62 may take out reverse mortgages to borrow against their homes’ equity while still living there. The Baltimore Sun has partnered with ConsumerAffairs to create this guide by comparing product availability and reviews of 48 businesses and choosing seven favorites from top reverse mortgage companies in Baltimore.

Companies pay ConsumerAffairs to be authorized, and The Baltimore Sun and/or ConsumerAffairs may receive compensation when you click a link, call a number or fill out a form on this site.

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What are the different types of reverse mortgages in Baltimore?

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Some people use reverse mortgages to pay for home improvements or repairs. Others use them to pay off property taxes, medical bills, or an existing mortgage so they can move to a new home.

Homeowners have many options when choosing a reverse mortgage, and what you plan to do with the funds should influence the type of reverse mortgage you choose. Think about how you intend to spend the money, how much you need and how you want to receive the funds.

Types of reverse mortgages in Baltimore include:

  • Home Equity Conversion Mortgages: HECMs are backed by the federal government, and their funds can be used for any purpose. However, because these loans are federally insured, the limit on a HECM is $726,525 at the time of publishing, and borrowers must receive financial counseling from an approved counselor. HECM loans require an upfront mortgage insurance premium, an origination fee, servicing fees and closing costs.
  • Single-purpose reverse mortgage: Funds received from a single-purpose reverse mortgage can only be used for one reason, which is specified before you borrow. Common purposes include home repairs, home improvements and property taxes. Nonprofits and state and local governments often provide these reverse mortgages to people with low or moderate incomes, but they do require an origination fee, servicing fees and closing costs.
  • Jumbo reverse mortgage: A jumbo reverse mortgage loan, also called a proprietary reverse mortgage, allows homeowners to borrow more than the HECM maximum if they have that much equity in their homes. These loans are backed by private lenders, so they don’t have the same government-mandated requirements. Fees include an origination fee, servicing fees and closing costs.

Reverse mortgage requirements and process in Baltimore

Reverse mortgages are designed for older people, so you must be at least 62 years old and:

  • Own the property outright or have paid off a majority of your mortgage
  • Live in the property as a primary residence
  • Have no outstanding federal debt
  • Be capable of paying property taxes, insurance and HOA fees

To confirm that you can pay the expenses listed above, lenders verify your income, assets, living expenses and credit history. Lenders also check your payment history for real estate taxes, hazard insurance and flood insurance. Finally, because HECM loans are backed by the federal government, HECM applicants must also meet with a HUD-approved financial counselor.

Reverse mortgages can only be used for properties that meet certain requirements. Qualifying properties include:

  • Single-family homes
  • Two- to four-unit homes with one unit occupied by the applicant
  • HUD-approved condominium projects
  • FHA-approved single-unit condominiums
  • FHA-approved manufactured homes

All properties must meet FHA property standards and flood requirements, too.

There are several fund distribution schedules available for reverse mortgages:

  • Lump-sum payment: With a lump-sum payment, you receive the entire loan amount at once. This type of payment is common with “HECMs for purchase” and single-purpose reverse mortgages.
  • Monthly payments: Monthly payments come in fixed installments. However, you can opt for term payments, which last for a set term between five and 10 years, or tenure payments, which last as long as you keep the home as your primary residence.
  • Line of credit: A line of credit lets you access funds as needed. Only the money you withdraw generates interest, so this is often preferable if you expect to need money on an erratic schedule.
  • Combination: It is also possible to combine some of these options. For example, you could have access to a line of credit and monthly payments, but the monthly payments would be smaller than if they were your sole distribution option.

Some options are more flexible than others, but that flexibility means you need to be extra diligent with your spending. When weighing your options, consider factors such as how long you plan to stay in the home, how you plan to spend the money and your spending habits.

Baltimore reverse mortgage FAQ

How does a reverse mortgage work in Baltimore?

A reverse mortgage in Baltimore works by allowing homeowners to borrow against the equity they have built up in their homes. These loans do not require the borrowers to make any monthly payments. Instead, they are paid off when borrowers die or permanently move out of the home.

Can a reverse mortgage be refinanced in Baltimore?

Yes, you can refinance a reverse mortgage in Baltimore. If your home’s value has gone up or the interest rates have changed since you took out a reverse mortgage, contact a lender about refinancing.

Can heirs walk away from a reverse mortgage?

Your heirs are not responsible for your reverse mortgage, so they can walk away from it. However, your lender will then sell your home to repay the reverse mortgage. If your heirs would like to keep the home, they can choose to pay off the loan at no more than the appraised value.

How much money can I get with a reverse mortgage in Baltimore?

The amount of money you can get with a reverse mortgage in Baltimore depends on:

  • Your age
  • Your interest rate
  • The value of your home
  • The type of reverse mortgage you choose

Baltimore reverse mortgage lender information

Authorized Partner

Finance of America Reverse

Finance of America Reverse offers standard and jumbo reverse mortgages, including HECMs and HECMs for purchase. There are fees for the FHA mortgage insurance premium, an origination fee, servicing fees and closing costs. Apply online or call Finance of America Reverse to talk to a representative.

Finance of America Reverse Learn More (218) 282-4772
Authorized Partner

Liberty Reverse Mortgage

Liberty Reverse Mortgage offers HECMs, HECMs for purchase and its EquityIQ jumbo loan. Associated fees include an FHA upfront mortgage insurance premium, an origination fee, servicing fees and closing costs. Borrowers can complete an eligibility calculator online or call for more information.

Liberty Reverse Mortgage Learn More (866) 268-5369
Authorized Partner

American Advisors Group

American Advisors Group offers HECMs, HECMs for purchase, and refinancing and jumbo reverse mortgages. It does not offer financial counseling, but it can help you find a HUD-approved counselor. Related fees include an origination fee, FHA mortgage insurance, servicing fees and closing costs. Complete a pre-qualification calculator online or call for more information.

American Advisors Group Learn More (800) 485-9418

Reverse Mortgage Answers

Reverse Mortgage Answers offers HECM loans. It does not offer financial counseling. Fees include an FHA mortgage insurance premium, an origination fee, servicing fees and closing costs. Borrowers can fill out an online form or call for more information. Reverse Mortgage Answers has an office at 614 Old Edmondson Ave., Ste. 200, Catonsville, MD 21228.

Reverse Mortgage Answers

Steven J. Sless Group

Steven J. Sless Group offers HECMs and HECMs for purchase and proprietary reverse mortgages. It does not provide financial counseling. Costs include FHA mortgage insurance, an origination fee, servicing fees and closing costs. Borrowers can fill out an online interest form or call for more information. Steven J. Sless Group has an office at 10995 Owings Mills Blvd., Ste. 200, Owings Mills, MD 21117.

Steven J. Sless Group

Academy Mortgage Corporation

Academy Mortgage Corporation offers HECMs. However, it does not offer financial counseling. Related expenses include an origination fee, servicing fees, an FHA mortgage insurance premium and closing costs. Borrowers can fill out an online interest form or call for more information. Academy Mortgage Corporation operates a local office at 11019 McCormick Road, Ste. 410, Hunt Valley, MD 21031.

Academy Mortgage Corporation

All Reverse Mortgage Inc.

All Reverse Mortgage Inc. offers HECMs, but it does not offer financial counseling. Fees include an FHA mortgage insurance premium, an origination fee, servicing fees and closing costs. Fill out a form online for an instant quote or call for more information.

All Reverse Mortgage Inc.