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Maine Reverse Mortgage Guide

Maine Reverse Mortgage Guide

If you’re a homeowner in Maine, approaching retirement age or already enjoying your golden years, you may be looking for other sources of income to increase your monthly cash flow, to pay for major home upgrades, or simply as a rainy-day fund.  

One option uniquely available to older homeowners is a reverse mortgage.  

Unfortunately, there’s a lot of confusion surrounding reverse mortgages, which is why we put together this guide to help you understand what a reverse mortgage is, how it works, and whether it might be the right financial solution for you. 

 This guide will walk you through the essentials of reverse mortgages in Maine, covering how to qualify, the benefits, and the application process.  

Our goal is to provide you with the knowledge you need to make an informed decision about whether a reverse mortgage could be a part of your financial strategy as you enjoy your retirement in the beautiful state of Maine. 

Get Your Free Reverse Mortgage Guide Here!

A reverse mortgage is a financial tool designed for homeowners aged 62 and older, offering a way to tap into the equity of their homes without the need to sell or move out.   

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), or HE allows you to borrow against the equity you’ve built up in your home. 

When you first take out a reverse mortgage, the reverse mortgage proceeds will first be used to pay off your current traditional mortgage, if you still have one. From there, you can choose to receive the remaining proceeds as a lump sum, monthly payments, a line of credit, or a mixture of these options.  

One of the most appealing aspects of a reverse mortgage is that there are no required monthly mortgage payments. It’s important to note, however, that homeowners are still required to pay property taxes, homeowners insurance, and maintenance costs to avoid defaulting on the loan. 

Repayment of the loan is deferred until the last borrower either sells the home, moves out permanently, or passes away.  

reverse mortgage requirements

To qualify for a reverse mortgage in Maine, homeowners must meet certain criteria. These include the following: 

  • Age Requirement. At least one of the homeowners must be at least 62 years of age. 
  • Equity. Homeowners need equity in the home.  
  • Residency. The only home that qualifies is the primary residence of the homeowners. Vacation homes and investment properties do not qualify.  
  • Counseling. Prospective borrowers must receive consumer counseling from a HUD-approved agency to ensure they understand the terms and implications of the reverse mortgage. 
  • Property Types. Eligible properties include single-family homes, 2-4 unit properties with one unit occupied by the borrower, HUD-approved condominiums, and manufactured homes that meet FHA standards. 
  • Property Condition. The home needs to be in good, maintained condition.  
  • Ongoing Obligations. While there is not a credit score requirement needed to qualify for a reverse mortgage, there will be a financial assessment to ensure that you will be able to meet the ongoing obligations such as paying property taxes, home insurance, maintaining the home, and any other required fees such as HOA fees.  
Maine map

Homeowners in Maine have several types of reverse mortgages to choose from, each catering to different needs and financial situations. Understanding the various options can help you make a more informed decision. Here are the main types of reverse mortgages available: 

Home Equity Conversion Mortgage (HECM)

This is the most common type of reverse mortgage and is federally insured by the Federal Housing Administration (FHA). This reverse mortgage is limited to those who are 62 years of age or older and can only be used for the borrower’s primary residence. Reverse mortgage funds can be used at the borrower’s discretion, but the FHA does limit the borrowing amount, which is currently $1,149,825 for 2024.

Reverse Mortgage for Purchase

This option allows seniors to purchase a new primary residence and obtain a reverse mortgage in one transaction. It can be a useful option for those looking to downsize, relocate, or move closer to family while accessing the equity from their new home without monthly mortgage payments. 

Jumbo Reverse Mortgage

Also known as a proprietary reverse mortgage, this type of reverse mortgage is designed for homeowners whose properties exceed the lending limit set by the FHA for traditional HECMs (see above). Jumbo reverse mortgages allow borrowers to access larger amounts of money from higher-value homes.

Reverse Mortgage Refinance Option

Homeowners who already have a reverse mortgage can opt to refinance their existing loan. This option might be appealing if the home’s value has increased significantly, or if interest rates have dropped, potentially allowing the borrower to access more funds or reduce the interest rate on their loan. 

One of the benefits of a reverse mortgage is the flexibility that comes with it. There are no rules that limit how a borrower can or can’t use the funds. While that means that homeowners can use their reverse mortgage proceeds for virtually anything, here are some of the most common uses:  

  • Supplement Monthly Income. One common use of a reverse mortgage is for supplementing monthly income. This is an attractive option for those who live on a fixed income or who have limited income sources.  
  • Home Renovations. A reverse mortgage is also commonly used for home renovations or upgrades. Homeowners may be interested in using their proceeds for this reason if they’ve lived in their home for a long time and it needs serious upgrades, or they want to make the home more accessible as they age.  
  • Travel. Retirement is a popular time to travel without the constraints of a job or school schedules to no longer worry about. A reverse mortgage can help provide the means to make this possible.  
  • Credit Card Debt. If homeowners are burdened with credit card debt, a reverse mortgage can also be used to pay it off.  
  • Emergency Fund. Some homeowners simply want the peace of mind knowing that they have additional funds available for those unexpected purchases.  
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The amount of money you can get from a reverse mortgage is based on a combination of factors, but the age of the youngest borrower primarily determines it, the market value of the home, and the current interest rates.  

Read more details about all the factors that affect the reverse mortgage loan amount here.  

There are two ways to get an estimate of what you might actually be able to get:  

Maine housing prices have increased more than 15 percent compared to last year, according to Redfin. In Portland, home prices went up more than 22 percent, and in Bangor, home prices went up more than 10 percent.  

The current median sale price for houses in Maine is $393,600.  

This increase in housing prices may mean an increase in the home equity available to access through a loan like a reverse mortgage.  


Applying for a reverse mortgage is a multi-step process, but the good news when you work with Mutual of Omaha Mortgage is that our experienced loan officers will walk you through each step of the process to make it as painless as possible.  

Here is what you can expect:   

Step 1: Talk to Reverse Mortgage Loan Officer

Begin by consulting with a reverse mortgage loan advisor. Our loan specialists are equipped to assess your specific financial situation, provide an estimate of potential benefits, and address any queries you might have.   

Step 2: Counseling

After reviewing your financial situation with your advisor, the next step is to undergo a counseling session with a HUD-approved third-party counselor. This crucial session is designed to educate you on the features and suitability of reverse mortgages, as well as other potential financial alternatives. Upon completion, you will receive a counseling certificate, which is necessary to proceed with your reverse mortgage application.   

Step 3: File the Application

With your counseling certificate in hand, your loan officer will help you file your reverse mortgage application. This step involves submitting necessary documentation, such as your photo ID, proof of homeowners insurance, and a recent property tax bill. Having these documents ready can expedite the processing of your loan. 

Step 4: Appraisal and Other Information Ordered

Mutual of Omaha Mortgage will then order a home appraisal to assess the condition and market value of your property. This appraisal is essential for determining the amount of money you are eligible to borrow. Additionally, a title search and credit report will be conducted to identify any liens on the property and evaluate your financial standing. This stage usually takes between one and two weeks. 

Step 5: Processing and Underwriting

Following the submission of your application and documentation, the underwriting process begins. During this phase, an underwriter will verify that all requirements for the reverse mortgage are met and decide whether to approve the loan. If necessary, they may request further documentation or certain repairs to your home. Throughout this process, your reverse mortgage

Step 6: Closing

Once your application is approved, a closing date will be set. You can choose to sign the closing documents either at your home, assisted by a mobile notary service, or in person at the title company. 

Step 7: Receive Funds

After the closing documents are signed, there is a mandatory three-business-day waiting period before the funds are released. You can choose how you wish to receive the funds, whether as a lump sum, monthly payments, or a line of credit, based on your preferences established during the application process. 

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Deciding on the right reverse mortgage lender is a crucial step in managing your financial future, and we are honored to be considered as you make this significant decision.  

Here are several compelling reasons why we think you choose Mutual of Omaha Mortgage to walk you through this process:  

  • Established Trust and Expertise: As part of a company with a history that is more than a 100 years old, Mutual of Omaha Mortgage stands on a solid foundation of reliability and expertise in the financial services industry. 
  • Leaders in the Industry: We are recognized as one of the top reverse mortgage lenders nationwide, demonstrating our commitment to excellence and client satisfaction. 
  • Exceptional Service and Integrity: Our A+ rating with the Better Business Bureau and high customer service scores on independent platforms reflect our dedication to integrity and quality in all interactions. 
  • Commitment to Your Financial Goals: At Mutual of Omaha Mortgage, our mission is to help you safeguard what you value most and achieve your financial goals. Whether it’s maximizing your retirement income or ensuring financial stability, we are here to guide you. 
  • Flexible Solutions Tailored to Your Needs: We understand that a reverse mortgage may not be suitable for everyone. If it’s not the right option for you, we are committed to helping you explore and find alternative solutions that better align with your needs. 
  • Dedication to Your Home and Legacy: Your home is more than just a place; it’s where you’ve created lasting memories and built your life. We are dedicated to helping you protect your home and maintain the lifestyle you’ve worked hard to establish. 

Discover whether a reverse mortgage is the right option for you by consulting with one of our experienced reverse mortgage specialists today. Let us help you secure your financial future while you continue to enjoy the comfort and security of your home. 

retirement life in maine

Whether you are a native or considering moving to Maine for retirement, there are some interesting features that make The Pine Tree State appealing to retirees. 

Maine is home to about 1.3 million residents. It includes 17 million acres of forest, 6,000 lakes and ponds, and 3,500 miles of coastline, according to  

If you don’t mind the cold and snowy winters of this New England state, Maine has a lot to offer retirees:  

  • Mild Summers. If you’re looking to get out of the heat for retirement, this may be an appealing feature. The average summer temperatures range from 60 degrees in the north to 70 degrees in the south.  
  • A low cost of living. If you want to retire in the Northeast but you are looking for an affordable place to live, SoFi says that Maine “has the lowest cost of living in New England.” 
  • Outdoor Recreation. Given the forests, lakes, mountains, and coastlines that make up Maine, you’re never too far from hiking, cycling, beaches, boating, and camping.  
  • Safety. If safety is a concern, Maine’s violent crime rate and property crime rate are both well below the national average, according to SafeWise, a home security company. See a full list of the safest cities in Maine here.  
  • Large Retirement Population. More than 20 percent of Maine’s population is 65 and older, according to data from the U.S. Census Bureau in 2020.  
  • Tax Benefits. Maine also offers a property tax relief program for qualifying residents who are 62 or older. And Maine does not tax Social Security benefits, and up to $10,000 of pension income is also exempt from income taxes, according to Unbiased, a financial advisor company.  

The most popular city for retirees is Portland, which is also Maine’s largest city. It is known for its historic architecture, restaurants, theaters, and it is on the coast. It also reportedly has good healthcare options, accordifng to Unbiased.  

Mutual of Omaha Mortgage is a licensed Reverse Mortgage lender in the state of Maine. You can get started by calling 800-578-0283 or filling out this form here.

You can also find a Maine Reverse Mortgage loan officer in your area through our loan officer directory. 

Reverse mortgage borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.  

This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement. 

Get Your Free Reverse Mortgage Guide Here!