Under the rules of a HECM reverse mortgage, borrowers must be at least 62 years old, named on the title of the home, and use the home as their principal residence.
Spouses who do not meet these criteria cannot sign the HECM reverse mortgage loan documents as a borrower and will be identified as either an eligible non-borrowing spouse or an ineligible non-borrowing spouse depending on certain additional criteria.
You should speak to your HUD-approved reverse mortgage counselor about the non-borrowing spouse criteria.
What if your co-borrower spouse survives you?
If both spouses are borrowers, the HECM reverse mortgage features apply equally to both spouses even in cases where one spouse survives the other.
What if your eligible non-borrowing spouse survives you?
When the borrower passes away, an eligible non-borrowing spouse who follows the requirements may be able to defer repayment of the loan and continue living in the home, but they will not be able to receive any remaining loan proceeds and they must continue to meet the obligations of the loan.
What if your ineligible non-borrowing spouse survives you?
An ineligible non-borrowing spouse would not be able to defer repayment of the reverse mortgage loan.