Many older adults wish to supplement their income before and during retirement. A reverse mortgage loan allows you to use your home’s equity and convert it into retirement income. The first reverse mortgage was issued in 1961 but has received many enhancements and improvements in the past 10 years so many senior homeowners have benefited from the process ever since. It helps older adults to retire in their homes and enjoy added financial freedom once they reach reverse mortgage age.
How old do you have to be for a reverse mortgage? Qualifying for a reverse mortgage depends on several factors, including age. Generally, you must be 62 years old and meet several requirements to qualify. However, some reverse mortgage options enable you to get funds at an earlier age. A thorough understanding of the criteria you must meet will put you in good standing when applying.
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A reverse mortgage allows you to borrow from your home’s equity, using it to fund an income stream for their retirement. A reverse mortgage is a loan you receive all at once or arrange monthly payments. You can even use it as a line of credit, taking your money until you reach your limit.
This loan is different from a traditional mortgage, where you receive funds and repay the loan via monthly payments. Instead, a reverse mortgage pays you, and you repay the loan when you move out, or it gets repaid when you pass away. In return for these funds, the lender charges interest and fees, deducted from the home equity.
Reverse mortgages can provide many benefits for older adults. For example, you can use the money to cover unexpected expenses, pay bills, make home repairs or enjoy a well-earned vacation.
Once you’ve qualified for a reverse mortgage, you can use the money however you want — meet daily living expenses, cover medical bills or pay off debt. The reverse mortgage company pays you as the homeowner. You remain responsible for fees and home maintenance and don’t have to make any payments against the balance until you cease using the home as your principal residence. There are two main types of reverse mortgages as follows:
Learn the reverse mortgages basics
The reverse mortgage age requirement for the HECM program is 62, but you can tap into your home’s equity earlier through proprietary loan options from private companies.
Yes! Proprietary reverse mortgage programs are available for homeowners between 55 and 62 whose homes’ values exceed the HECM limit. These programs are also called jumbo because homeowners can access larger amounts than HECMs.
At Senior Lending Corporation, we offer the HomeSafe Jumbo Credit Line, which allows borrowers to obtain a reverse mortgage of up to $4 million at age 55. The product enables you to make flexible payments, doesn’t charge prepayment or maturity date penalties, and the limit rises automatically each year for the first seven years.
Just like the FHA HECM, the HomeSafe Credit Line is non-recourse. However, since it is privately backed, it does have other criteria that must be met.
Contact Senior Lending to learn more about this reverse mortgage solution.
No. Reverse mortgages don’t have a maximum age limit threshold. You could qualify for a higher HECM loan amount as you get older.
What age qualifies for a reverse mortgage isn’t the only factor to consider when applying. For a HECM reverse mortgage, you are required to meet the following criteria:
The requirements for a proprietary reverse mortgage are similar except for the age, term flexibility and federal insurance exceptions. Because proprietary reverse mortgages are not federally insured, most options do not require upfront mortgage insurance or monthly premiums. Proprietary programs can approve property types on and outside the FHA list like warrantable condos.
Keep in mind there are also costs associated with a reverse mortgage, such as origination fees, closing costs, interest and loan-servicing fees.
No worries, FHA now allows the other spouse to be under 62 years of age and still be protected under the reverse mortgage non-recourse shield. They no longer have to move out or sell the property if the other spouse passes away.
An eligible Non-Borrowing Spouse (NBS) is listed in the loan documents but not named as a borrower. They have to be married when applying for the mortgage, remain the borrower’s spouse throughout their life and live in the principal residence.
One difference between an eligible and an ineligible NBS is that the eligible spouse lives on the property while the ineligible spouse doesn’t. The other difference is the deferral provision, which doesn’t protect the ineligible NBS, meaning the loan will be due when the borrower passes away.
On the other hand, an eligible NBS is eligible for deferral, which means they can continue living in the house without paying off the loan after the borrower’s death. However, they won’t receive reverse mortgage payments.
Yes, you’re eligible for a reverse mortgage before age 62 if you jointly own the home with a spouse who meets the age requirement.
The quick answer is no. Reverse mortgages were designed to augment older adults’ lifestyles and provide them with security and quality of life while still living in their homes. If you meet the requirements, it can be an exciting option for you and your family. Reverse mortgages give you the freedom to enjoy your retirement comfortably, knowing your needs are taken care of and you can make the best adventure out of your retirement years.
Feel confident funding your retirement with our reverse mortgage products because we care about helping you fulfill your financial goals. Through a supportive and empowering approach, combined with years of experience, we provide relationship-driven solutions that make a difference.
We’ll assign you a dedicated licensed advisor to guide, support and meet your needs. They’ll prioritize understanding what you want and delivering it effectively and honestly.
Past clients have had such rewarding experiences with their advisors that they recommend us to anyone looking for retirement funding. They have written raving reviews appreciating our advisors’ professionalism, friendliness, efficiency, timeliness, expertise, commitment, assistance and patience. One client was considerably impressed when their advisor continued answering his questions post-closing.
A reverse mortgage can be life-changing for you and your family. Senior Lending Corporation can provide you with the trusted financial opportunity of a lifetime and help you make your retirement dreams a reality. If you’re interested in exploring the exciting possibilities of a reverse mortgage, we can help.
We’re a team of licensed advisors passionate about providing our customers with the best possible experience. We understand your needs and will work together with you so you can live your retirement your way.
Dial 800-822-1190 if you’d like to speak to a reverse mortgage expert to learn how the and proprietary programs work. Alternatively, please get in touch with us online, and one of our licensed professionals will get back to you and talk you through this fantastic opportunity.
