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Receive funds as a lump sum, monthly payments, line of credit, or a combination
No monthly mortgage payments required
You retain full ownership of your Maine home
Line of credit grows over time if unused
Spousal protections available
2025 FHA lending limit: $1,209,750
Homeowners must be 62 years or older to qualify
You must keep up with property taxes, insurance, and maintenance
Loan becomes due when you move, sell, or pass away
Heirs may repay the loan and keep the home, or sell it and retain any equity
Reverse mortgage proceeds are not taxable income
Costs may include closing fees, FHA mortgage insurance, and servicing fees
A reverse mortgage is available to qualified homeowners who meet the following:
Are 62 years of age or older (55+ for some private programs)
Own their home outright or have substantial equity
Use the home as their primary residence
Live in an eligible property type: single-family, condo, or manufactured home
Can continue to pay taxes, insurance, and maintain the property
Complete counseling with a HUD-approved agency
Lump Sum:
One-time payment at closing
Monthly Payments:
Tenure (for life) or fixed term
Line of Credit:
Withdraw as needed—grows over time
Combination:
Customize your payout structure
You must keep up with property taxes, insurance, and maintenance
Loan becomes due when you move, sell, or pass away
Heirs may repay the loan and keep the home, or sell it and retain any equity
Reverse mortgage proceeds are not taxable income
Costs may include closing fees, FHA mortgage insurance, and servicing fees
22.9% of Maine residents are aged 65+, the highest share of any US state
Median home value is around $414,774, up 1.5 percent over the past year
Median sale price: $376,260 to $400,000+ depending on source
75.5% homeownership rate, one of the highest in the Northeast
Average retirement income per household: $19,732
Cost of living index slightly above national average, typically around 101 to 103
Many Maine homes are older (built before 1980), indicating potential for significant accrued equity
Tap into tax-free equity without selling their home
Eliminate monthly mortgage payments
Stay in their Maine residence while improving financial flexibility
A reverse mortgage is a loan for homeowners aged 62 or older that allows them to convert a portion of their home equity into cash, without monthly mortgage payments. The most common type is the federally insured Home Equity Conversion Mortgage (HECM).
Instead of making monthly payments to a lender, the lender pays you. The loan is repaid when you move out, sell the home, or pass away. Interest and fees are added to the balance over time.
Eligibility includes being 62 or older, living in the home as your primary residence, owning the home (or having substantial equity), and completing HUD-approved counseling. You must also stay current on taxes and insurance.
The amount depends on your age, your Maine home's value, interest rates, and the FHA lending limit—$1,209,750 in 2025. Older homeowners in Maine typically qualify for larger amounts.
You may choose a lump sum, monthly payments (term or tenure), a line of credit, or a combination of these options.
Yes, you retain full ownership of your home in Maine. However, you must live in the property and continue paying property taxes, insurance, and for any upkeep.
The reverse mortgage becomes due when the home is no longer your primary residence—such as after you move out, sell the property, or pass away. Repayment is usually made through the sale of the home.
HECMs are non-recourse loans, so you or your heirs will never owe more than the market value of your Maine home at the time of sale.
Yes, through the HECM for Purchase program, which allows you to use reverse mortgage proceeds to buy a new primary residence in Maine—often without monthly payments.
Reverse mortgage proceeds don’t impact Social Security or Medicare. However, income-based programs like Medicaid or SSI may be affected, so it’s wise to consult an advisor in Maine.
Costs may include loan origination, FHA mortgage insurance, closing fees, and servicing charges. Most of these can be financed into the loan, so Maine homeowners rarely pay them upfront.
Upon your death, the loan becomes due. Your heirs can choose to repay the loan and keep the Maine home, or sell it and retain any remaining equity after the loan is settled.