Equal Housing Lender
Fairway NMLS #2289
Ken Powell NMLS #2656628
A reverse mortgage lets homeowners 62 and older convert part of their home equity into cash, a monthly advance, or a growing line of credit, with no required monthly principal and interest mortgage payment. You keep the title, you stay in your home, and the loan is repaid later, usually when the home is sold. Here is exactly how it works, without the sales pitch.
A reverse mortgage is a home-secured loan that lets you defer repayment until a later date. The most common type, and the only one insured by the Federal Housing Administration, is the Home Equity Conversion Mortgage, or HECM. Instead of you paying the lender every month, the lender advances money to you against your equity. You can pay as much or as little toward the balance as you wish each month, including nothing at all.
You remain the owner. The deed stays in your name. You are still responsible for property taxes, homeowners insurance, HOA dues if any, and keeping the home maintained, the same obligations every homeowner carries. The loan balance grows over time as interest accrues, and it becomes due when the last borrower sells, permanently moves out, or passes away.
You and Ken review your age, home value, existing mortgage balance, and goals. Family members are welcome in this conversation, and Ken encourages it. Many of his reviews include an adult son or daughter on the call.
Federal rules require a session with a HUD-approved counselor who does not work for any lender. This is a consumer protection, and a good one. You cannot proceed without the counseling certificate.
The formal application, an FHA appraisal of your home, and a financial assessment confirming you can sustain taxes, insurance, and upkeep. There is no minimum credit score, but history matters.
The file is reviewed and approved, then you close, much like any mortgage. If you have an existing mortgage, it is paid off from the proceeds at closing, which is how many borrowers eliminate their monthly payment.
A lump sum at closing, fixed monthly advances for a set period or for life in the home, a line of credit you draw as needed, or a combination. The unused line of credit has a growth feature, which is one of the most misunderstood and most valuable parts of the program.
You live in your home, pay your property charges, and use the funds as you choose. No monthly mortgage payment is required. The loan is settled later, and your heirs have clearly defined options, explained on the heirs page below.
This region is unusually well suited to the program. Calvert, Charles, and St. Mary's counties are full of homeowners who bought decades ago, in places like La Plata, Prince Frederick, Leonardtown, Solomons, and Dunkirk, and now hold large equity positions in homes they have no intention of leaving. The same is true across Prince George's County, from Bowie to Fort Washington to Upper Marlboro.
Many are military retirees from Patuxent River or Joint Base Andrews with pensions that cover life comfortably but leave little flexibility for large expenses. Home equity is often their largest single asset, and a HECM is one disciplined way to reach it without selling or taking on a required monthly payment.
Get the complete 62+ Homeowner's Guide, or send Ken your situation for a private review. Family welcome in every conversation.