Reverse Mortgage Solutions in Maryland, DC & Virginia

We’re the Reverse Mortgage Specialists – Let Us Help Show You The Way!


Considering a reverse mortgage in Maryland, Virginia, or Washington DC for yourself or a loved one? You’ve come to the right place. Eagle Creek Mortgage is the reverse mortgage specialist. Could this very unique product be a good fit for your needs? We’d be happy to discuss the advantages and ideal usage of reverse mortgages in detail with you with a simple call to (301) 802-6426.

Reverse mortgages were created with the specific goal of helping seniors in need of financial assistance, whether it was to pay for health care or for their basic monthly living expenses. Basically, the way it works is that by taking out a reverse mortgage, you will be converting a part of the equity that you have in your property into cash without having to actually sell your home – which means that you retain ownership.

In the meantime, here are some useful tips and information you’ll want to consider when it comes to reverse mortgages:

Frequently Asked Questions about HUD’s Reverse Mortgages

The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program, which enables you to withdraw some of the equity in your home.  The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.  You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301 or downloading their free booklet, “Use Your Home to Stay at Home,” a guide for older homeowners who need help now. It is smart to know more about reverse mortgages, and decide if one is right for you!

1. What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  However, unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

2. Can I qualify for FHA’s HECM reverse mortgage?

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home.

3. Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?

Yes.  You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.

4. What types of homes are eligible?

To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

5. What are the differences between a reverse mortgage and a home equity loan?

With a second mortgage, or a home equity line of credit, borrowers must have adequate   income to qualify for the loan, and they make monthly payments on the principal and interest.  A reverse mortgage is different, because it pays you – there are no monthly principal and interest payments.  With a reverse mortgage, you are required to pay real estate taxes, utilities, and hazard and flood insurance premiums.

6. Will we have an estate that we can leave to heirs?

When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid.  All proceeds beyond the amount owed belong to your spouse or estate.  This means any remaining equity can be transferred to heirs.  No debt is passed along to the estate or heirs.

7. How much money can I get from my home?

The amount you may borrower will depend on:

  • Age of the youngest borrower
  • Current interest rate
  • Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
  • Initial Mortgage Insurance Premium–your choices are HECM Standard or HECM SAVER

You can borrow more with the HECM Standard option. In addition, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.  If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.

8. How do I receive my payments?

You can select from five payment plans:

  • Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term – equal monthly payments for a fixed period of months selected.
  • Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
  • Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
  • Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

Why Consider Reverse Mortgage Solutions in Maryland?

Reverse mortgages can help senior citizens who are no longer able to work may need financial assistance – or those who are able to work may need to increase their income in order to improve their standing of living. Reverse mortgages can also be used for senior homeowners that need help paying off their first mortgage. Since selling your house may be a last resort that you do not want to do unless you absolutely have to, a reverse mortgage might be a good solution. In some cases, selling your home may not be profitable either due to capital gains taxes, in which case selling your home would not end up helping to improve your standard of living.

How Do Reverse Mortgage Solutions Work for Maryland Homeowners?

If you’ve applied for a reverse mortgage and you’ve been approved for the loan, then you won’t have to pay the loan back until you either die or you move out. If you decide to sell your house, you can use the proceeds to help pay back the reverse mortgage. If you’ve passed away and have left the house to your heirs, they can then pay off the house in order to pay off the reverse mortgage. If the loan can’t be repayed once you’ve moved out or have passed away, then the lender will gain possession of the house.

The actual loan works in a number of ways. You can be given a set monthly cash advance for a specific period of time, you can be given a set monthly cash advance during the duration of time that you live in the house, you can be given a line of credit or you can be provided with a combination of line of credit and monthly payments.

How to Know You Qualify for a Reverse Mortgage

In order to qualify for a reverse mortgage, you need to meet the following requirements:

  • You have to be at least 62 or older.
  • You must either own the house outright or have paid down a considerable portion of the home’s costs.
  • The house must be your primary residence.
  • You cannot be delinquent on any federal debts.
  • You must participate in a consumer information session provided by an HECM counselor approved by HUD.

While applying for a reverse mortgage can be very beneficial, it’s also important to understand the terms of your loan and what can affect it. Be sure to contact Alex Echeandia for more information about reverse mortgage solutions in Maryland today.

Care to learn more about the reverse mortgages we offer homeowners in Maryland, Virginia, and Washington, DC? Just give us a call at (301) 802-6426.


Available In:

Alexandria Reverse Mortgages Bethesda Reverse Mortgages Columbia Reverse Mortgages Ellicott City Reverse Mortgages Germantown Reverse Mortgages Herndon Reverse Mortgages
Annapolis Reverse Mortgages Bowie Reverse Morgages Davidsonville Reverse Mortgages Fairfax Reverse Mortgages Glen Burnie Reverse Mortgages Springfield Reverse Mortgages
Arnold Reverse Mortgages Clarksville Reverse Mortgages Highland Reverse Mortgages Falls Church Reverse Mortgages Glenwood Reverse Mortgages Upper Marlboro Reverse Mortgages
Baltimore Reverse Mortgages College Park Reverse Mortgages Laurel Reverse Mortgages Gaithersburg Reverse Mortgages Great Falls Reverse Mortgages Vienna Reverse Mortgages