Reverse Mortgage Age Requirement

If you meet the reverse mortgage age requirement of 62 years, you could be a candidate for the federally-insured Home Equity Conversion Mortgage (HECM) program.

The loan can enable you to remain in your home longer and does not need to be repaid for as long as you maintain principal residency in your home and keep up with property taxes and insurance. Because the length of the loan depends directly on how long you live in the home, the amount you can borrow also depends on that time frame, including the age at which you get the reverse mortgage.

Reverse mortgage proceeds can be accessed in a few different ways—as a line of credit, as monthly term or tenure payments, as a lump sum, or some combination of those options—and can be used in whatever way you’d like; for groceries, medication, or even utility bills.

Borrowers must pay an upfront mortgage insurance premium along with annual mortgage insurance of 1.25% of the loan balance.

Which Program Should I Choose?

There are a couple of different HECM programs to choose from, including the Saver and the Standard loan options. The HECM Saver offers lower upfront fees in exchange for a smaller loan amount.

While the HECM Standard program charges an initial mortgage insurance premium of 2% of the maximum claim amount (the value of your home up to the lending limit of $625,500), that drops to just .01% of the maximum claim amount for HECM Saver loans.

Borrowers who choose an adjustable rate loan have several options of how to receive their loan proceeds, including a line of credit, monthly payments, or even a lump sum.

If you’re interested in a lump sum, you could also get a fixed-rate loan through the HECM Saver program. (Compare Fixed vs Adjustable Programs)

How Much Can I Receive from a Reverse Mortgage?

The amount of money you can receive from a reverse mortgage depends on a few factors:

  • your age
  • home value
  • current interest rates and fees.  

Your age plays a large role, because the older you are the more money you will qualify when you take out the reverse mortgage.

The amount of money is based on principal limit factors, which provide you with more money as you get older. For example, if you’re a homeowner who owns your home, check out the examples below.

2020's Reverse Mortgage Principal Limit Factors

Age of BorrowerPrincipal Limit FactorCurrent Lending Limit
620.49%
$765,600
650.51%$765,600
700.54%
$765,600
750.56%
$765,600
800.60%
$765,600
850.65%
$765,600
900.70%
$765,600
*Principal Limit Factors taken from HUD.gov using example expected rate of 3.76%. You must deduct closing costs and upfront insurance (approx. 3%) to arrive at your NET principal limit.
PLF tables source: https://www.hud.gov/sites/documents/august2017plftables.xls

The earlier you take the loan out, the longer your balance will accrue interest. While it’s not required, you do have the option of making payments—even if it’s just on the interest—on your reverse mortgage throughout the term of the loan.

If you’re considering a reverse mortgage and have questions about what kind of loan to take out, or how it may vary depending on your age, don’t hesitate to call us Toll Free 800-565-1722 and find out more. We’re here to help!

Would you like to know now how much you qualify for? Try our Free Online Calculator