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Reverse Mortgage Age Requirements

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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, and many senior homeowners have benefitted from the process ever since. It allows 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. In general, you must be 62 years old to qualify, but there are cases where you can get one if you’re younger. There are several guidelines to consider when applying for a reverse mortgage. A thorough understanding of the criteria you need to meet will put you in good standing when you apply.

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What Is a Reverse Mortgage?

A reverse mortgage offers homeowners a way to use their home equity to fund an income stream for their retirement. A reverse mortgage is a loan — whether you receive it all at once or arrange monthly payments is completely up to you. You can even use it as a line of credit, taking your money until you reach your limit. Reverse mortgages can provide many benefits for older adults. For example, you can use the money to cover unexpected expenses, pay bills, buy groceries or enjoy a well-earned vacation.

Once you’ve qualified for a reverse mortgage, you can use the money however you need to — to 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:

  • Home equity conversion mortgages (HECM): This is the most common reverse mortgage type and is available to homeowners aged 62 and older who meet all requirements set out by the federal housing administration (FHA).
  • Jumbo or proprietary reverse mortgages: These loans are not federally insured. They are offered by private companies rather than backed by the government. Proprietary reverse mortgages offer more flexibility, allowing you to qualify for a reverse mortgage around age 55.

Learn more about what reverse mortgages are

What Are the Other Reverse Mortgage Requirements?

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:

  • Age: At least one homeowner must be 62 years or older.
  • Principal residence: Your home must be your principal residence. In other words, you live at the residence most of the year.
  • Homeownership: You must be a homeowner and have sufficient equity in your home. If your mortgage balance is down, you may be able to use your reverse mortgage loan to pay it off.
  • Home repairs: Your home must meet the minimum FHA/HUD requirements for home repairs. FHA has lightened up from the strict guidelines of the past. The only repairs that must be completed prior to closing are health and safety issues not simple cosmetic repairs.
  • Federal debt: You cannot have any existing federal debt, such as student loans or income taxes. If you have federal debt but have managed to pay off most of the balance, you may still qualify for a reverse mortgage, provided you pay off the existing debt.
  • Ongoing property charges: Your financial situation must allow for the payment of ongoing property charges such as maintenance and repair costs, taxes and insurance.

The requirements for a proprietary reverse mortgage are similar, with one exception. The minimum age required is only 55 years of age. Proprietary reverse mortgages are not federally insured, which means most options do not require upfront mortgage insurance or monthly premiums.

What Is the Reverse Mortgage Age in Florida?

In Florida, one homeowner must be at least 62 years old, although private lending companies can also provide you with proprietary loan options. The reverse mortgage requirements differ from state to state, so it’s best to understand your local alternatives to make informed decisions if you’re in Florida.

Can You Get a Reverse Mortgage at 55?

YES! The HomeSafe Proprietary Reverse Mortgage allows borrowers to obtain a reverse mortgage at the age of 55. This is a Jumbo reverse mortgage that in non-recourse just like the FHA HECM, but does have some other criteria that needs to be met since they are privately backed. Contact Senior Lending to learn more about this amazing new reverse mortgage.

Is There a Maximum Age Limit for Reverse Mortgages?

While age 62 is the general minimum, no maximum age limit precludes you from qualifying for a reverse mortgage. You can access more of your home’s equity when you’re older.

What if Your Non-Borrowing Spouse Is Under Age 62?

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.

The only difference between an “eligible” and an “Ineligible” NBS is if the spouse lives in the property then the spouse is a ELIGIBLE NBS. If the spouse does NOT live in the property then the spouse is an INELIGIBLE NBS.

Can Anyone Take Out a Reverse Mortgage?

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.

Strengthen Your Retirement With Senior Lending Corporation

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, Senior Lending Corporation 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. Grab the phone and call us at 800-822-1190 if you’d like to speak to a reverse mortgage expert. 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.

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