• Question
  • Question about age requirement for Reverse Mortgage -- My Wife is only 55

    Asked on 12/27/2012

    I am age 62 and my wife is 55. I am sole owner of the home. Would this qualify me for the age requirement or does my wife also have to be age 62 even though she does not own the home?

  • Categories: Retirement Planning, Reverse Mortgages, Qualifying


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  • Your can get the Reverse Mortgage by yourself, but it's risky for your Spouse. When she's 62, you're eligible to refinance the Reverse Mortgage with another Reverse Mortgage, to add her to Title and reduce her risk, but if you Pass before that happens, the Reverse Mortgage would become due-and-payable, potentially leaving her in a bad position. When a Reverse Mortgage is done like that, the younger Spouse is called a "non-borrowing Spouse". She'll need to complete the Counseling Session with you, and sign the Counseling Certificate, and sign a few "non-borrowing Spouse" disclosures during the loan process.

    To me, it only makes sense to do a Reverse Mortgage like that if you have a Life Insurance policy that would enable your wife to pay back the Lender, if necessary. Or if you're in a Foreclosure situation, and you're able to keep your property because of the Reverse Mortgage.

    If you decide to do it, I highly suggest selecting the "Credit Line" distribution method, if you're able to. That method would allow you to maintain as much equity in the property as possible, making it easier to refinance into another Reverse Mortgage when your wife turns 62 (you can start the loan process 90 days before she turns 62).

  • Login to rate this answer:   Answered on 12/27/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.