If you’re considering a reverse mortgage but your spouse is younger than 62, you may be wondering whether you can still qualify. The good news is that having a younger spouse doesn’t automatically prevent you from getting a reverse mortgage.
However, there are some important rules you should understand before moving forward, especially when it comes to protecting your spouse’s ability to remain in the home.
A reverse mortgage can be a useful financial tool for homeowners who are 62 or older. But when one spouse is younger, it’s important to understand how the loan works, how much money may be available, and what happens if the older spouse passes away or moves out of the home.
The good news is that FHA-insured reverse mortgages have protections for certain younger spouses. Understanding those protections before closing can make a significant difference down the road.
Can You Get a Reverse Mortgage If Your Spouse Is Under 62?
Yes. If one spouse is at least 62 years old and meets the other loan requirements, the couple may still qualify for a Home Equity Conversion Mortgage (HECM).
A HECM is the most common type of reverse mortgage and is insured by the Federal Housing Administration (FHA).
The younger spouse cannot be a borrower on a HECM until reaching age 62. However, they may qualify as an Eligible Non-Borrowing Spouse.
This designation is important because it may allow the younger spouse to remain in the home after the borrowing spouse passes away, provided certain requirements are met.
For example, let’s say a homeowner is 70 years old and their spouse is 57. The older spouse may be eligible for a reverse mortgage even though the younger spouse isn’t old enough to be a borrower.
However, the younger spouse’s age will generally be considered when calculating how much money is available.
That’s an important distinction. You may qualify for the loan, but having a younger spouse can affect the amount of equity you’re able to access.
What Is an Eligible Non-Borrowing Spouse?
An Eligible Non-Borrowing Spouse is someone who is married to the reverse mortgage borrower but isn’t listed as a borrower on the loan.
For FHA-insured HECM reverse mortgages, HUD has established rules that provide certain protections for eligible spouses who are younger than 62.
Generally, the younger spouse must meet requirements involving their marital status, identification at loan origination, and occupancy of the property as their principal residence.
It’s important to understand that being married to the borrower doesn’t automatically guarantee these protections.
The spouse must be properly identified and meet the applicable eligibility requirements.
Eligible vs. Ineligible Non-Borrowing Spouse
Not every non-borrowing spouse qualifies for the same protections.
An Eligible Non-Borrowing Spouse generally meets HUD’s requirements for marriage, residency, and identification in connection with the reverse mortgage.
An Ineligible Non-Borrowing Spouse does not meet one or more applicable requirements.
This distinction becomes especially important when the borrowing spouse passes away.
An eligible spouse may qualify for a deferral of loan repayment, while an ineligible spouse generally does not receive the same protection.
That’s why I believe it’s important for both spouses to understand their status before the reverse mortgage closes.
What Happens If the Older Spouse Passes Away?
This is probably the biggest concern for couples considering a reverse mortgage when one spouse is younger.
With a properly structured HECM, an Eligible Non-Borrowing Spouse may be able to continue living in the home after the borrowing spouse passes away without immediately having to repay the reverse mortgage.
This is commonly referred to as a deferral of the loan’s due-and-payable status.
In simple terms, it means the reverse mortgage may remain outstanding while the eligible surviving spouse continues living in the home and meets the applicable requirements.
However, this protection is not automatic in every situation.
Requirements for a Surviving Younger Spouse
To maintain the applicable protections, the surviving spouse generally must:
- Continue living in the property as their principal residence.
- Keep property taxes and homeowners insurance current.
- Maintain the property according to the loan requirements.
- Provide required documentation to the loan servicer.
- Meet applicable marital and occupancy requirements.
- Establish legal ownership or another qualifying legal right to remain in the home for life within 90 days after the borrower’s death, when required under the applicable HECM rules.
The surviving spouse must also continue satisfying the other applicable obligations associated with the reverse mortgage.
The important takeaway is that a younger spouse doesn’t necessarily have to move out or sell the home when the older spouse passes away.
However, these protections need to be understood and addressed before closing rather than assumed.
Can a Younger Spouse Continue Receiving Reverse Mortgage Payments?
This is another important question, especially for homeowners considering a reverse mortgage line of credit or monthly payments.
An Eligible Non-Borrowing Spouse may be allowed to remain in the home after the borrower passes away, but that doesn’t mean they can continue accessing the reverse mortgage funds.
Generally, after the last borrower passes away, additional loan advances are no longer available to the non-borrowing spouse.
For example, suppose a homeowner establishes a reverse mortgage line of credit and passes away several years later.
Even if the younger spouse qualifies to remain in the home, they generally cannot continue drawing funds from the unused portion of that line of credit.
The same general limitation applies to scheduled reverse mortgage payments.
This is an important consideration when deciding how much money to access and whether the household will have sufficient income after the borrowing spouse passes away.
Does Having a Younger Spouse Affect How Much Money You Can Receive?
Yes. In many cases, having a younger spouse will reduce the amount of money available through a HECM reverse mortgage.
The amount you may qualify for depends on several factors, including:
- The age used for the reverse mortgage calculation.
- The appraised value of your home.
- Current interest rates and the applicable expected rate.
- FHA’s maximum claim amount.
- Existing mortgage balances and other required payoffs.
- Applicable closing costs and financial assessment requirements.
When a borrower has an Eligible Non-Borrowing Spouse, the younger spouse’s age is generally used in determining the principal limit.
This is because the loan calculation accounts for the possibility that the younger spouse may remain in the property for many years after the borrower passes away.
Reverse Mortgage Example: One Spouse Is 70 and the Other Is 55
Let’s say two homeowners are considering a reverse mortgage.
In the first situation, both spouses are 70 years old.
In the second situation, one spouse is 70 and the other is 55.
Assuming the homes have the same value and the loans have similar terms, the couple with the 55-year-old spouse would generally qualify for a lower principal limit.
That doesn’t necessarily mean a reverse mortgage is a bad option for the second couple.
It simply means the younger spouse’s age affects the calculation.
The amount available can vary considerably based on interest rates, property value, and other factors. That’s why I recommend reviewing actual loan estimates rather than relying on a general online calculator.
Can You Remove a Younger Spouse From the Title to Qualify for More Money?
This is something homeowners occasionally ask about, especially when there’s a significant age difference between spouses.
Some people assume that removing the younger spouse from the home’s title will allow the lender to calculate the reverse mortgage using only the older spouse’s age.
For an FHA-insured HECM, that’s generally not how it works.
If the younger spouse qualifies as an Eligible Non-Borrowing Spouse, their age is still considered when calculating the principal limit.
Removing someone from the title also raises important ownership and estate-planning concerns.
You shouldn’t assume that transferring ownership will increase the available loan proceeds or improve the situation for your spouse.
Before making any changes to the property’s title, I recommend discussing the situation with the lender and a qualified real estate or estate-planning attorney.
Can Both Spouses Remain on the Home’s Title?
Yes. In many situations, both spouses can remain on the home’s title even if only one spouse qualifies as a reverse mortgage borrower.
However, being an owner and being a borrower are two different things.
The older spouse may be the only borrower on the reverse mortgage, while the younger spouse remains an owner and is identified as an Eligible Non-Borrowing Spouse.
The lender and title company will need to review the ownership structure and make sure it meets applicable loan requirements.
One thing I would emphasize is that being listed on the title doesn’t automatically make someone a reverse mortgage borrower or guarantee non-borrowing spouse protections.
Those protections depend on the applicable program rules and eligibility requirements.
What Happens If the Older Spouse Moves Into a Nursing Home?
Another concern is what happens if the older spouse needs long-term medical care or moves into an assisted living facility.
With a HECM reverse mortgage, the property generally must remain the borrower’s principal residence.
A borrower who is absent from the home for more than 12 consecutive months because of a physical or mental illness may no longer satisfy the principal residence requirement.
This can cause the reverse mortgage to become due and payable.
It’s important to understand that the protections available to an Eligible Non-Borrowing Spouse after a borrower’s death do not necessarily apply when the borrower is still living but has permanently moved out of the property.
For example, if a 75-year-old borrower permanently moves into a nursing home while their 60-year-old spouse remains in the house, the younger spouse’s continued occupancy alone may not prevent the loan from becoming due.
This is one of the reasons I recommend considering your long-term housing and healthcare plans before moving forward with a reverse mortgage.
What Happens When the Younger Spouse Turns 62?
Turning 62 doesn’t automatically make the younger spouse a borrower on the existing reverse mortgage.
However, once the younger spouse reaches 62, the couple may be able to explore refinancing into a new HECM with both spouses as borrowers.
Whether that makes sense depends on several factors, including:
- The current reverse mortgage balance.
- The home’s value at the time of refinancing.
- Current interest rates.
- Available equity.
- Closing costs and other loan requirements.
In some situations, refinancing could provide additional flexibility or make both spouses borrowers.
In other situations, refinancing may not provide enough benefit to justify the additional costs.
The important thing is to review the numbers before making a decision.
Should You Wait Until Both Spouses Are 62?
There isn’t one answer that works for every couple.
For some homeowners, waiting until both spouses are at least 62 may make sense.
For others, accessing home equity sooner could provide financial relief or help accomplish an important retirement goal.
For example, suppose you’re 68 years old, your spouse is 59, and you still have a substantial monthly mortgage payment.
A reverse mortgage might allow you to pay off that existing mortgage and eliminate the required monthly principal and interest payments, provided sufficient proceeds are available.
That could improve your monthly cash flow.
However, you would still be responsible for property taxes, homeowners insurance, maintenance, and other applicable obligations.
On the other hand, if your current mortgage payment is manageable and you don’t need access to the equity right away, waiting may be worth considering.
There are advantages and disadvantages to both approaches.
The right decision depends on your finances, your retirement goals, and how long you plan to remain in the home.
What Are the Responsibilities of a Reverse Mortgage Borrower?
One misconception about reverse mortgages is that homeowners no longer have financial responsibilities once the loan closes.
That’s not the case.
With a HECM reverse mortgage, borrowers generally aren’t required to make monthly principal and interest payments as long as they meet the loan requirements.
However, homeowners must continue to:
- Pay property taxes.
- Maintain homeowners insurance.
- Keep the home in good condition.
- Meet applicable occupancy requirements.
- Pay any other required property charges, such as applicable HOA dues.
Interest and applicable fees are generally added to the loan balance over time.
That means the balance can increase, and the amount of equity remaining in the home may decrease.
Borrowers can voluntarily make payments toward the loan, but monthly principal and interest payments generally aren’t required.
For couples with a younger spouse, understanding these obligations is particularly important because the younger spouse may eventually become responsible for maintaining the property and satisfying the applicable requirements to remain in the home.
Frequently Asked Questions About Reverse Mortgages With Younger Spouses
Can I Get a Reverse Mortgage If My Wife or Husband Is Under 62?
Yes. If you’re at least 62 and meet the other HECM requirements, you may qualify even if your spouse is younger than 62. Your younger spouse may be designated as an Eligible Non-Borrowing Spouse if the applicable requirements are met.
Will My Younger Spouse Have to Move Out When I Die?
Not necessarily. An Eligible Non-Borrowing Spouse may qualify to remain in the home after the borrowing spouse passes away, provided the applicable conditions are satisfied.
Does My Younger Spouse Have to Be on the Title?
Not necessarily. Title requirements depend on the ownership structure and applicable loan rules. However, title ownership alone doesn’t establish eligibility for non-borrowing spouse protections. This should be reviewed before closing.
Can My Younger Spouse Access the Reverse Mortgage Line of Credit After I Die?
Generally, no. An Eligible Non-Borrowing Spouse may qualify to remain in the home, but additional reverse mortgage advances generally aren’t available after the last borrower passes away.
Can We Refinance the Reverse Mortgage When My Younger Spouse Turns 62?
Potentially. Once both spouses are at least 62, refinancing into a new HECM with both spouses as borrowers may be an option. Whether it makes financial sense depends on the loan balance, home value, interest rates, and other eligibility requirements.
Can We Lose Our Home With a Reverse Mortgage?
Yes. Although a reverse mortgage generally eliminates required monthly principal and interest payments, the loan can become due and payable if certain requirements aren’t met. Failure to pay property taxes, maintain homeowners insurance, or satisfy other loan obligations can put the home at risk.
Is a Reverse Mortgage Right for You and Your Younger Spouse?
A reverse mortgage can be a useful financial tool, but it’s not something I believe homeowners should enter into without understanding how it works.
When one spouse is younger than 62, there are additional considerations that deserve attention.
It’s not just about how much money you can receive today. It’s also about understanding what happens to your spouse in the future.
Before moving forward, I recommend reviewing how much equity may be available, whether your spouse qualifies for the applicable protections, and how the loan fits into your overall retirement plans.
If you’re considering a reverse mortgage and have a younger spouse, I’d be happy to help you review your options and understand how the rules may apply to your situation.
Contact me today to discuss your options and see whether a reverse mortgage might make sense for you.
Important Information: Home Equity Conversion Mortgages are FHA-insured reverse mortgages. At least one borrower must be 62 or older, and borrowers must meet applicable eligibility requirements, including HUD-approved counseling and financial assessment. Loan proceeds depend on age, home value, interest rates, and other program factors. Borrowers must continue paying property taxes, homeowners insurance, and other required property charges, maintain the property, and meet occupancy requirements. Failure to meet loan obligations may result in the loan becoming due and payable. Non-borrowing spouse protections are subject to applicable HUD requirements. This information is provided for educational purposes and is not a commitment to lend.