A reverse mortgage Maryland homeowners take out lets them borrow against their home equity with no monthly loan payments. State law says you must finish housing counseling before you close. A HECM (Home Equity Conversion Mortgage), insured by the Federal Housing Administration, is the option most borrowers pick. To learn what happens with loan payouts and interest as time passes, take a look at how a reverse mortgage works. For the 2025 fiscal year, 380 of these loans in Maryland got their insurance from HUD. Between October 2025 and August 2026, Maryland borrowers had a $429,000 median home value and a $191,860 median initial principal limit. Before closing costs reduce it, your principal limit is the amount of cash you'll have to work with at the start.
Deferring property tax in Montgomery County, with an income limit of $80,000
No matter your state, you must continue paying property taxes and homeowners insurance under the federal rules for reverse mortgages. The home must stay your main residence, and you also have to keep it in good shape. If you get behind on property taxes, your HECM loan could go into default. If you default, it means you broke a loan rule, and the lender can demand the full amount and move to foreclose. Since your local tax bills keep coming, relief programs are important.
A local relief option for older residents is authorized by Maryland Tax-Property Article §10-204 and Montgomery County Code §52-18(F). You'll find this program in Montgomery County alone; it doesn't cover the whole state. Eligible homeowners can put off paying county residential property tax increases through the Montgomery County senior tax program. Your gross household income must stay at or below $80,000. At least 1 homeowner has to be 65 or older, and that person must have lived in the home for 5 consecutive years as a principal residence. The deadline for your application and paperwork is September 1, during the current taxable year.
Is a 12-point checklist required by Maryland's Reverse Mortgage Loans Act?
Yes, state law requires your lender or loan arranger to provide a written list of topics for you and a counselor to review. For easy reading, Maryland Commercial Law §12-1207 says the sheet has to be in 12-point type or bigger. Under Maryland law, you're also required to finish housing counseling before you take out a reverse mortgage loan. You're free to contact any of the 5 agencies in Maryland that are HUD-approved for counseling.
Under the state Reverse Mortgage Loans Act, all reverse mortgage lenders must also comply with many federal rules that govern HECMs. Knowing what to expect is easier if you review the key reverse mortgage requirements before your counseling appointment. At your appointment, have the written sheet with you so the counselor can go through each question with you.
State rules for lender licensing and the complaint phone line at 410-230-6077
Most reverse mortgage lenders and loan servicers working in Maryland hold a state license, which the Commissioner of Financial Regulation grants. After you close, the company that handles your account and monitors your tax and insurance payments is called a servicer. Mortgage firms that operate in Maryland get their licenses through the Office of Financial Regulation, part of the Maryland Department of Labor.
The Maryland Office of Financial Regulation looks into complaints from state consumers about financial service providers that Maryland has licensed, registered or chartered. You can call the complaint unit at 410-230-6077 or the licensing office at 410.230.6100. Montgomery County's Office of Consumer Protection investigates mortgage company complaints too, if your home is in the county.
