Use the equity in your Scarborough 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. If you own a home in Scarborough, a reverse mortgage lets you tap into your home's equity without selling your property or taking on monthly mortgage payments.
In 2025, the FHA lending limit was raised to $1,209,750, giving Scarborough homeowners greater access to their built-up equity. Whether you need a lump sum, monthly income, or a line of credit, a reverse mortgage may be a flexible solution to support retirement, manage expenses, or improve your lifestyle.
Contact us today for a free consultation to learn how a Scarborough reverse mortgage can benefit you.
Benefits of a Scarborough Reverse Mortgage
Homeowners must be 62 years or older
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 Scarborough home
Line of credit grows over time if unused
Spousal protections available
2025 FHA lending limit: $1,209,750
Who May Apply for a Reverse Mortgage in Scarborough?
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
The loan is considered “reverse” because instead of paying the lender each month, the lender pays you. Repayment is deferred until you move, sell the home, or pass away.
Ways to Receive Your Funds
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
Important Considerations
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
Scarborough, Maine Reverse Mortgage Snapshot (2026)
The typical Scarborough home was valued at $705,594 as of June 30, 2026 - among the largest equity positions in Maine
Values eased 1.1% over the past year, which makes timing an equity draw worth a conversation rather than an assumption
Scarborough's coastal neighborhoods hold a substantial retired owner-occupant population
The 2025 FHA HECM lending limit of $1,209,750 covers the great majority of Scarborough homes
Cumberland County carries Maine's highest median sale price at $618,000 (May-July 2026)
Roughly three quarters of Maine households are owner-occupied
County and statewide medians: [Maine Association of Realtors] [Zillow]
Why a Scarborough, Maine Reverse Mortgage Makes Sense
Scarborough produces the largest HECM proceeds we see in southern Maine, simply because the underlying values are the highest. For an owner in their seventies on Higgins Beach or off Route 207, the question is usually not whether there is equity but how to draw it without selling a house they intend to stay in. A Scarborough reverse mortgage - an FHA-insured Home Equity Conversion Mortgage - lets eligible homeowners:
Convert home equity into tax-free cash without selling the house
Eliminate the monthly mortgage payment while keeping title in their own name
Take the money as a lump sum, monthly payments, a growing line of credit, or a combination
Stay in their Scarborough home for as long as they live there as a primary residence
Borrowers must be 62 or older, keep up with property taxes, insurance and maintenance, and complete counseling with a HUD-approved agency. Call 207-218-1154 for a free, no-obligation review of what a Scarborough reverse mortgage would actually produce for you, or read more about reverse mortgages in Maine.
Common Questions About Tampa Reverse Mortgages
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 Scarborough home's value, interest rates, and the FHA lending limit—$1,209,750 in 2025. Older homeowners in Scarborough 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 Scarborough. 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 Scarborough 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 Scarborough—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 Scarborough.
Costs may include loan origination, FHA mortgage insurance, closing fees, and servicing charges. Most of these can be financed into the loan, so Scarborough homeowners rarely pay them upfront.
Upon your death, the loan becomes due. Your heirs can choose to repay the loan and keep the Scarborough home, or sell it and retain any remaining equity after the loan is settled.