Reverse Mortgage (HECM) Guide for Maryland Homeowners 62+
Maryland has approximately 340,000 homeowner households led by someone 62 or older. With a median home value of $395,000 — elevated by proximity to Washington D.C. and Baltimore — Maryland seniors often hold substantial home equity. For retirees in a high-cost Mid-Atlantic state, a HECM can supplement retirement income or cover healthcare costs without monthly mortgage obligations.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
$1,249,125
Maryland's home values largely fall below the 2026 FHA HECM limit of $1,249,125, so most Maryland homeowners can access HECM proceeds based on their full appraised value. Luxury properties in Montgomery County, Bethesda, and other D.C. suburbs may approach the cap.
Source: HUD Mortgagee Letter 2025-21
Maryland Reverse Mortgage Protections
Maryland does not require separate state reverse mortgage counseling beyond federal HUD requirements. The Maryland Commissioner of Financial Regulation oversees mortgage lenders. Maryland's Homeowner Protection Act (Md. Code, Real Prop. § 7-105 et seq.) provides general consumer protections against predatory lending practices, which apply to HECM transactions.
Source: Md. Code, Real Prop. § 7-105; Maryland Office of Financial Regulation
HUD-Approved Counseling in Maryland
Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in Maryland →
Maryland HECM FAQ
Are HECMs available in Maryland?
Yes. HECMs are available throughout Maryland. FHA-approved lenders licensed in Maryland can originate HECMs on eligible primary residences statewide.
Does Maryland require additional reverse mortgage counseling?
No. Maryland relies on the federal HUD counseling requirement. Before any HECM application, you must complete a session with a HUD-approved independent counselor. Maryland and D.C.-area agencies are plentiful.
How do Maryland property taxes interact with a HECM?
HECM borrowers must keep property taxes current. Maryland offers a Homeowners' Property Tax Credit that caps property taxes as a percentage of income for qualifying homeowners — a program that can meaningfully reduce annual tax costs for retirees holding a HECM.
What if I have a HELOC on my Maryland home?
Existing HELOCs must be paid off and closed at HECM closing. The payoff typically comes from HECM proceeds. Maryland lenders will confirm no subordinate liens remain before disbursement.
Where can I find a HUD-approved HECM counselor in Maryland?
Use the HUD HECM Counselor Search (link above) filtered to Maryland. The Baltimore-Washington corridor has numerous HUD-approved counseling agencies. Phone counseling is available statewide.