Reverse mortgages are becoming integrated as a staple in the long term financial plans. Used in a comprehensive plan, reverse mortgages make retirement funds last longer. Unfortunately, there is still a lot of confusion for those couples with notable age gaps. Generally, reverse mortgages take place when all borrowers are over 62.
It is possible for a couple with one spouse who is under 62 years of age to get a reverse mortgage loan? Is it a smart financial move in this scenario?
Yes You Can! Make an informed decision.
The key is that all borrowers must be 62 years old, or older at the time of taking out the loan. The younger spouse must not be on title at the time of the loan closing.
Spouses under age 62 should have questions about this scenario. The key is to study your situation and see if entering into a reverse mortgage makes financial sense. HUD has recently made policy changes to protect younger spouses.
If the other spouse dies before the younger spouse, the younger spouse may inherit the home. The reverse mortgage repayment date defers for the lifetime of the younger spouse. This deferral period must be applied for. There are specific aspects of a reverse mortgage when there is a younger spouse (under age 62). Let’s take a closer look.