Do Both Homeowners Need to Be 62 in Order to Get a Reverse Mortgage?
Age Requirement on Loans for Seniors: Do Both Homeowners Need to Be 62 in Order to Get a Reverse Mortgage
It is customary to obtain a conventional loan in order to purchase a home. Over time, as the loan balance is paid down, equity is being built up in the home. Once a homeowner has completed all of the loan payments and reached the age of 62, they have a considerable amount of equity accumulated. Then they have the option to apply for a reverse mortgage to have access to that money.
What is a Reverse Mortgage?
A reverse mortgage is also called a Home Equity Conversion Mortgage, or HEMC. This is a loan that is insured by the Federal Housing Authority that allows the homeowner to draw some of the equity out of the home without having to pay taxes on the money received. Instead of paying out money, the homeowner receives money. The homeowner receives money in the form of a monthly payment, a lump sum, or as an equity line of credit account. The loan is repaid when the homeowner dies, sells the home, or relocates. No payment on the loan is required until all homeowners vacate the property.
What is the Age Requirement?
A division of the U.S. Department of Housing and Urban Development, or HUD, that is responsible for insuring reverse mortgages is called The Federal Housing Authority, or FHA. FHA has required that all homeowners wishing to apply for a reverse mortgage be at least 62 years old. If a home is owned by five people and all of them want to apply for the loan, then all five people must be at least 62 years of age in order to qualify. The older the homeowner is, the more money they would be able to borrow.
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