Reverse Mortgage Age Requirements

Reverse Mortgage Age Requirements

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: You can get a reverse mortgage at age 62 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 have sufficient equity in your home to qualify. 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 required property standards. If there is room for improvement, your mortgage provider will inform you about the repairs and maintenance you must complete before applying.
  • 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. Depending on the service provider, you can apply for one starting at age 55. 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?

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?

Private jumbo reverse mortgages differ in terms of age requirements. Although you may be able to get one at 55, often, the minimum age for reverse mortgages is 60, depending on the mortgage company. Age is one of several requirements, so conduct thorough research into the pros and cons.

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?

If you’re looking at a reverse mortgage via a HECM provider, you may have to account for an age difference between you and your spouse. If only one of you is over 62, only the spouse that meets the minimum age requirement can be listed as a borrower on the mortgage. The other will be categorized as an eligible non-borrowing spouse.

An eligible non-borrowing spouse is listed in the reverse mortgage paperwork 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.

Age has no bearing on whether you receive eligible non-borrowing status. Instead, the younger spouse must meet the above requirements to establish residency rights. If they don’t meet these requirements, they are considered an ineligible non-borrowing spouse. If something happens to you and your spouse is named eligible, they have the right to live in the house, providing they pay property taxes, insurance and home maintenance costs.

Reverse Mortgage Age Chart 2022

Below, we outline the various reverse mortgage options and age-related limit factors for HECM reverse mortgages.

  • Age 62: 49.6% principal limit factor with a $970,800 lending limit.
  • Age 65: 51.5% principal limit factor with a $970,800 lending limit.
  • Age 70: 54.6% principal limit factor with a $970,800 lending limit.
  • Age 75: 56.9% principal limit factor with a $970,800 lending limit.
  • Age 80: 60.6% principal limit factor with a $970,800 lending limit.
  • Age 85: 65.4% principal limit factor with a $970,800 lending limit.
  • Age 90: 70.5% principal limit factor with a $970,800 lending limit.

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

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 813-829-1196 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.