Yorba Linda Reverse Mortgage Question - My wife is not 62, but I am - can I get a reverse mortgage?I get asked this question quite a lot and everyones situation is different, but here goes. In order to qualify for an FHA Reverse Mortgage all owners on title must be over the age of 62 and living in the property (unless one is in a medical facility).
If you were to take your spouse off of title to the property and then plan to refinance the reverse (with a new reverse) once she turns 62 and add her back on BEWARE - There is NO guarantee that you would be able to refinance. If rates have gone up, or guidelines change you may be in the position of not being able to refinance.
Maybe you plan to take her off and deed her right back on after the reverse transaction is completed. BEWARE! Adding persons on to title (even a spouse) after you get the loan is cause for default and the lender would have the right to foreclose.
Perhaps you are thinking that you will use some of the cash flow savings from getting the reverse to obtain a life insurance policy on yourself with your wife as the beneficiary, so that if you were to pass away, she would receive a payout of enough funds to payoff the reverse mortgage if she wished. I actually think this MIGHT work. BUT - you may not qualify for enough life insurance. Will you really pay the premiums? Check with a licensed insurance professional on this one.
Time goes by so fast - If at all possible I recommend waiting for the younger spouse to turn 62. (When deciding to do something like this I think it’s very important to talk not only with your spouse, but talk to the heirs other trusted family members and a qualified professional (estate attorney & financial planner).
That’s my two cents on the subject - what do you think?
If you were to take your spouse off of title to the property and then plan to refinance the reverse (with a new reverse) once she turns 62 and add her back on BEWARE - There is NO guarantee that you would be able to refinance. If rates have gone up, or guidelines change you may be in the position of not being able to refinance.
Maybe you plan to take her off and deed her right back on after the reverse transaction is completed. BEWARE! Adding persons on to title (even a spouse) after you get the loan is cause for default and the lender would have the right to foreclose.
Perhaps you are thinking that you will use some of the cash flow savings from getting the reverse to obtain a life insurance policy on yourself with your wife as the beneficiary, so that if you were to pass away, she would receive a payout of enough funds to payoff the reverse mortgage if she wished. I actually think this MIGHT work. BUT - you may not qualify for enough life insurance. Will you really pay the premiums? Check with a licensed insurance professional on this one.
Time goes by so fast - If at all possible I recommend waiting for the younger spouse to turn 62. (When deciding to do something like this I think it’s very important to talk not only with your spouse, but talk to the heirs other trusted family members and a qualified professional (estate attorney & financial planner).
That’s my two cents on the subject - what do you think?
Deborah Nance
Your Local Southern California Reverse Mortgage Professional
Deborah, great information, am just starting to learn how these loans work, so thanks for the information.
Good information. Everyone should be informed before jumping into a situation that has serious financial consequences.
I think you hit the nail on the head.... you need several professionals to look at whether a reverse mortgage is right for you.