Reverse mortgages allow homeowners to turn their home equity into retirement income. These products are designed for older people who own their homes outright or have paid down most of the mortgage. 澳洲幸运5官方开奖结果体彩网:Qualifying for a reverse mortgage can depend on a number of factors, including your age and, if you’re married, your spouse’s age. Specifically, you ไmust be at least 62 years old to qualify for a home equity conversion mortgage (HECM)🧸. However, you could qualify for a non-HECM mortgage if you're under 62.

Reverse Mortgage Basics

A 澳洲幸运5官方开奖结果体彩网:reverse mortgage is an arrangement in which a homeowner uses their 澳洲幸运5官方开奖结果体彩网:home equity to generate income for their retirement, taken as a lump sum, in regular payments, or as a 澳洲幸运5官方开奖结果体彩网:line of credit. They can then use the money to pay off debt, cover medical bills, or meet day-to-day living expenses. This may sound like a home eꦜquity loan or a home equity line 👍of credit (HELOC), but it’s not.

A reverse mortgage company makes payments to the homeowner. Interest and fees accumulate on the reverse mortgage balance. No payment is due against the balance until the homeowner ceases to use the home as their 澳洲幸运5官方开奖结果体彩网:principal residence. This can happen if the homeowner sells the property, moves out, or dies.

On the other hand, home equity loans and HELOCs require payments to the lender during the homeowner’s lifetime. Home equity loans usually have 澳洲幸运5官方开奖结果体彩网:fixed interest rates, while HELOCs typically have 澳洲幸运5官方开奖结果体彩网:variable rates. In either case, the home is 澳洲幸运5官方开奖结果体彩网:collateral for the loan, and defaulting could lead to a 澳洲幸运5官方开奖结果体彩网:foreclosure proceeding.

It’s wise to consider the 澳洲幸运5官方开奖结果体彩网:ꩵpros and cons of a reverse mortgage before choosing to pursue one. If you decide you want one, they are offered by federal, state, and local government agencies, nonprofit organizations, and private lenders. The federal government backs reverse mortgage products called 澳洲幸运5官方开奖结果体彩网:home equity conversion mo✃rtgages (HECMs). This type of reverse mortgage product has strict approval requirements, including a minimum age threshold.

Reverse Mortgage Age Requirements

Reverse mortgages are, by nature, designed for people who have paid off their homes or have very little remaining on their mortgage, leaving them with substantial equity. Typically, this means homeowners who have already retired or are approaching retirement age. The HECM program imposes a minimum age requirement of 62 to qualify; there are no upper age limit thresholds.

Aside from age, there are other requirements to qualify for an ꦆHECM. Homeowners must:

• Use the home as a principal residence
• Have paid off all or most of the mortgage
• Not be delinquent on federal debt
• Have sufficient financial resources to pay for home maintenance and upkeep, insurance, and property taxes
• Keep their home in good shape
• Attend United States Department of Hꦏousꦑing and Urban Development (HUD)-approved consumer counseling

Additionally, the home must be an eligible property type, which includes single-family homes; two- to four-unit homes, with one unit occupied by the borrower; 澳洲幸运5官方开奖结果体彩网:🍨Federal Housing Administration (FHA)-approved condos; and FHA-approved mobile homes.

Non-Borrowing Spouses Under Age 62

Age differences can present a snag when a married couple wants a reverse mortgage through the HECM program. If one spouse is at least 62 but the other is not, the younger spouse cannot be listed on the reverse mortgage as a co-borrower. They can, however, be classified as an eligible non-borrowing spouse. This can be important for establishing residency rights later if the borrowing spouse dies first.

An eligible non-borrowing spouse is named in the reverse mortgage loan documents but not listed as a borrower. They must be married to the borrower when the reverse mortgage is taken out, remain the borrower’s spouse during their lifetime, and continue to live in the home that secures the reverse mortgage as their principal residence.

Age doesn’t determine eligible non-borrowing status. You can be five, 10, or even 20 years younger than your spouse, and it won’t matter. You only need to have been married to th💦e borrower, live in the home, and be listed in the loan documents. If you can’t meet these requirements, you’re considered an ineligible non-borrowing spouse.

The distinction is important because if you are listed as an eligible non-borrowing spouse, you have the right to remain in the home if your borrower spouse dies. You need to continue paying homeowners insurance, maintenance, and property taxes, but you aren’t obligated to pay anything toward the HECM balance. Ineligible non-borrowing spouses 澳洲幸运5官方开奖结果体彩网:don’t enjoy these protections.

The Bottom Line

Reverse mortgages have a minimum age requirement. If you’re under age 62, an HECM is unavailable. However, you can consider other reverse mortgage options allowing you to borrow at a younger age. Just be sure that these non-government-backed mortgages are offered by 澳洲幸运5官方开奖结果体彩网:reputable lenders.

Before committing to a reverse mortgage, take time to research the best reverse mortgage companies. Be careful to read the fine print to ensure you understand what you’re signing. There are unscrupulous lenders out there looking to 澳洲幸运5官方💙开奖结果体彩网:take advant♚age of vulnerable older people.