Use the equity in your home!
A Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, is a federally insured loan designed for homeowners who are 62 years or older. It allows you to convert a portion of your home's equity into tax-free funds—without having to sell your home or make monthly mortgage payments.
In 2025, the HECM lending limit was increased to $1,209,750, allowing more homeowners to access greater equity. Whether you need a lump sum, monthly income, or a line of credit, a reverse mortgage can help you live more comfortably, cover unexpected expenses, or simply enjoy retirement on your own terms.
Contact us for a free consultation and let us walk you through your personalized reverse mortgage options. We'll help you understand how much equity you can access, your responsibilities as a homeowner, and what to expect long-term.
Benefits
Available to homeowners aged 62 and older
Receive tax-free funds as a lump sum, monthly payments, line of credit—or a combination
No monthly mortgage payments required
Continue to own and live in your home
Line of credit grows over time and can act as a financial safety net
Non-borrowing spouses may be protected and allowed to remain in the home
2025 FHA lending limits increased to $1,209,750
Who May Apply for a Reverse Mortgage?
Reverse mortgages are available to qualified homeowners who:
Are 62 years of age or older (some proprietary loans may allow 55+)
Own their home outright or have significant equity
Use the property as their primary residence
Live in a single-family home, approved condo, or qualifying manufactured home
Are able to keep up with property taxes, insurance, and upkeep
Complete a HUD-approved reverse mortgage counseling session
The loan is considered "reverse" because instead of making payments to a lender, the lender makes payments to you. You are not required to repay the loan until the home is sold, no longer your primary residence, or upon the borrower's passing. As long as you live in the home and meet the loan obligations, you will not be required to make monthly payments toward the balance.
Ways You Can Receive Funds
Lump Sum: Receive a one-time payout at closing
Monthly Payments: Choose tenure (as long as you live in the home) or term (a fixed period)
Line of Credit: Draw funds when needed; unused credit grows over time
Combination: Customize how and when you receive funds
Important Considerations
You must continue to pay property taxes, insurance, and maintain the home
Loan costs include origination fees, FHA mortgage insurance, and closing costs
The loan becomes due when the home is sold, you move out, or pass away
Heirs can choose to repay the loan and keep the home, or sell the home and keep any remaining equity
Loan proceeds are not taxable
A reverse mortgage is a loan available to homeowners aged 62 or older, allowing them to convert part of their home equity into cash without selling their home or making monthly mortgage payments. The most common type is the Home Equity Conversion Mortgage (HECM), insured by the FHA.
Unlike a traditional mortgage, where the borrower makes monthly payments to a lender, a reverse mortgage pays the homeowner. The loan is repaid when the home is sold, the borrower moves out, or the borrower passes away. Interest and fees are added to the loan balance over time.
Homeowners must be at least 62 years old, live in the home as their primary residence, own the home outright or have a low balance, and complete a HUD-approved counseling session. They must also remain current on property taxes and insurance.
The loan amount is based on your age, the home’s appraised value, current interest rates, and the FHA lending limit, which is $1,209,750 in 2025. Older borrowers typically qualify for higher amounts.
Borrowers can choose from a lump sum, monthly payments (tenure or term), a line of credit, or a combination. The line of credit option also grows over time if unused.
Yes, you retain full ownership of your home. However, you must continue to live in it as your primary residence and remain current on property taxes, insurance, and maintenance.
The reverse mortgage becomes due when you sell the home, move out of it for 12 consecutive months, or pass away. At that time, the loan must be repaid.
HECMs are non-recourse loans. This means you or your heirs will never owe more than the value of the home when it is sold, even if the loan balance is higher.
Yes. The HECM for Purchase program lets you buy a new primary residence using a reverse mortgage. This can be ideal if you’re relocating or downsizing.
No. The funds received from a reverse mortgage are considered loan proceeds, not income, so they are not subject to income tax.
No, reverse mortgage proceeds generally don’t affect Social Security or Medicare. However, they may impact Medicaid or Supplemental Security Income (SSI) eligibility.
Costs may include origination fees, mortgage insurance premiums, closing costs, and servicing fees. These are often rolled into the loan balance.
What Clients Say About Us
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"The loan for Jeremy Wadsworth went from submission to CTC in just 11 days - that's really fast! It was submitted on February 8, 2021 and received the CTC on February 23, 2021 with a rate of 2.73%! Great work Patrick Chandler and Lighthouse Mortgage Group,LLC!"
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"I can’t say enough about Pat. They really went above and beyond to get my loan refinanced. I had a huge problem with my credit report and they were able to clear it up with ease."
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"Pat Chandler was Very professional, charming and polite. Very direct and on time with everything. Hooked us up with a realtor who worked hard everyday to find us a property we liked. The whole experience has been fantastic."
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"Pat Chandler is an amazing person to work with! He's very knowledgeable and honest and he’s always available to answer any questions. We just recently closed on our first home and he helped guide us through the whole process. He made everything fall into place for us."
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" Patient and professional. Always answered the phone or quickly returned the call. Hel helped our family to get the home we’ve been wanting to buy for years!"
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" I cannot express how awesome it has been to work with Pat. He answered every question and went above and beyond to help us with this process!"
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"Pat was very helpful. He was very informative. He made himself available when we needed him. Which was very helpful to us due to our schedules, I recommend Pat to everyone I know."
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"This is the second time we have used Pat for our mortgage needs. He is a hard worker, and is easy to work with."
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"Pat was wonderful, he kept us up to date on what we needed and what was going on during the loan process. He was kind, friendly and helpful. I would highly recommend him to anyone needing help with on of the biggest decisions in life. Buying a home!!"
We Serve the Entire State of Maine
At Lighthouse Mortgage Group, we proudly provide mortgage solutions to homebuyers and investors throughout Maine. Here are some of the cities we serve, but we aren't limited to these locations: