What is the minimum age for a reverse mortgage?
62 is the answer. In fact, all persons on title must be 62 years of age or older.
Sometimes this leads to the question, “What if I’m 62 and my spouse is younger, can I just get the reverse in my name?” Technically it can be done but carries a large risk in my opinion. What risk you ask? Basically if the senior borrower passes away the loan becomes due and payable leaving the remaining person with 6 months to a year to figure out how to pay off the loan. I’ll give a more detailed explanation of the risks associated with removing a younger spouse from title just to get a reverse in my next post.
Deborah Nance
Your Local Southern California Reverse Mortgage Professional
I dont know anything about reverse mortgages so could you explain little more. If two people on a title are of age 62 or older when they close on reverse mortgage and one pass it away sometime later on the clause of full payment due does not apply? What if the second person is younger than 62 when they sign the contract but when the older person pass it away after younger person turns 62 does this clause still applies?
Hi Debra,
Good info from you as always.
Btw, I came across a property not long ago that had both a mother and son on title and the loan, although he was 55 at the time the loan was originated. Not sure how that one squeaked by and I wouldn't have believed it myself, had I not seen a copy of the deed of trust with signatures.