2024 Reverse Mortgage Age Requirements

Q: What is the minimum age for a HECM Reverse Mortgage?

HUD has established the minimum age for a HECM reverse mortgage borrower to be 62 by the time the loan closes.

February 6, 2024

Reverse mortgages are valuable tools for older Americans. They allow you to access the equity in your home without making monthly mortgage payments.

The most well-known option is the Home Equity Conversion Mortgage (HECM), a program backed by the Department of Housing and Urban Development (HUD). This program offers a secure method for seniors to borrow against their home equity.

In addition to HECM, proprietary reverse mortgages are available for those as young as 55. These private loans increase the availability of reverse mortgages, offering more homeowners a chance to use the equity they have built over the years.

Understanding the requirements for both HECM and proprietary reverse mortgages is an important first step if you’re considering using your home equity to help fund your retirement.

Table of Contents

• How Much Can I Receive from a HECM Reverse Mortgage?

• 2024 HECM Reverse Mortgage Benefits by Age

• 2024 Proprietary Programs Work at Age 55

• Proprietary Reverse Mortgage Loan-to-values (LTV) from Age 55

• Which Program Should I Choose?

• Age FAQs

How Much Can I Receive from a HECM 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.

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

Your Age
Home Value
Current Interest Rates

Your age plays a significant role because the older you are, the more money you qualify for when you take out the reverse mortgage. The amount of money is based on principal limit factors, which give you more money as you age. For example, if you’re a homeowner who owns your home, check out the examples below.

2024 HECM Reverse Mortgage Benefits by Age

Age of Borrower	Principal Limit Factor	Current Lending Limit
62	38.9%	$1,149,825
65	41.0%	$1,149,825
70	44.5%	$1,149,825
75	47.3%	$1,149,825
80	51.6%	$1,149,825
85	57.5%	$1,149,825
90	64.0%	$1,149,825

*Principal Limit Factors taken from HUD.gov using an example expected rate of 5.375%. To arrive at your NET principal limit, you must deduct reverse mortgage costs, including upfront insurance (approx. 3%). PLF tables source: https://www.hud.gov/sites/documents/august2017plftables.xls

2024 Proprietary Programs Work at Age 55

Borrowers who are not yet 62 but are 55 and over can also seek a reverse mortgage from one of the “Jumbo” or “Proprietary Programs” available. HUD does not insure private programs, so no mortgage insurance is required.

The requirements and property eligibility criteria can be different but very similar, and borrowers who want to get their 62nd birthday immediately can always investigate one of the private programs to determine if it will meet their needs.

Proprietary Reverse Mortgage Loan-to-values (LTV) from Age 55

Borrower Age	Loan-to-value	Loan-to-value	Loan-to-value
Rate	9.375%	9.990%	9.740%
55	21.5%	29.5%	29.5%
60	23.0%	31.0%	31.0%
65	24.7%	32.7%	32.7%
70	27.6%	35.6%	35.6%
75	32.1%	40.1%	40.1%
80	37.0%	45.0%	45.0%
85	42.8%	50.8%	50.8%
90	43.4%	51.4%	51.4%

LTV Tables as of: 09/07/2023
Available Payout: Lump Sum
*Divide your home value by the LTV percentage to calculate your loan amount.
E.g., $2,000,000 value, age 70 = 35.6% LTV or $712,000 loan amount.

Which Program Should I Choose?

There are several different HECM programs to choose from: fixed-rate and adjustable, lump sum distributions, and monthly payments or lines of credit from which the borrower can draw as needed/desired. What is right or best is what is right or best for the borrower’s circumstances. The fixed-rate loan seems attractive to many borrowers, but there are several downfalls borrowers must consider.

Namely, fixed rates require a full draw of all sums available. If you do not need all the money to pay off existing liens, HUD requirements on their program only allow a portion of the line to be accessed in the first 12 months. On a fixed-rate loan with no subsequent draws available, any amount not available in the initial draw is lost to the borrower.

Also, since fixed rates are often higher than adjustable rates and interest rates determine how much money a borrower will receive, adjustable-rate borrowers often receive higher benefits in today’s interest-rate environment.

Finally, the adjustable program gives borrowers more options regarding how they will receive their funds (remember, with the fixed rate, the only option is a one-time full draw of all funds available). Borrowers who choose an adjustable-rate loan have several options for receiving their loan proceeds, including a line of credit, monthly payments, or even a lump sum.

The funds in the line of credit grow annually at the same rate as the interest accrual rate plus the MIP accrual rate on the unused portion. This is not interest you are earning but relatively greater borrowing power later as the growth amount increases the available line.

You only owe what you borrow and accrue interest on the outstanding balance, so having the additional money available costs you nothing and only needs to be repaid later if you draw and use those funds.

Age FAQs

What is the minimum age for a HECM Reverse Mortgage?

HUD has established that the minimum age for an HECM reverse mortgage borrower is 62 by the time the loan closes.

What is the minimum age for a Jumbo Reverse Mortgage?

Generally, jumbo programs also use a 62-year-old minimum age, but several programs are now available for borrowers down to 55 years of age.

I am 71, and my wife is 69. Would it benefit us to wait 6 months until my wife turns 70 before we get our reverse mortgage?

It is true that the older you are, the more you receive with a reverse mortgage, but there are two things borrowers need to remember when strategizing over whether to wait for the next birthday to apply for the loan. Firstly, if you are within 6 months of your next birthday when you are ready to close the loan, you get the benefit of the next higher age anyway. Also, one of the factors that determines the amount of money you receive in a reverse mortgage is the interest rate. When rates are declining or below the HUD floor of 3%, waiting for the next birthday doesn’t adversely affect you. However, when rates rise, you can quickly lose much more from a higher rate than the little you gain from the next age level if the interest rates increase before you lock in your expected rate. If the rates go down, you can float down one time at loan documents, but if they continue to rise, borrowers often lose far more money from increasing rates than they ever would have gained from the following age benefit.

Is there any age limitation to getting a reverse mortgage?

To get a reverse mortgage, borrowers must be at least 62 years old for the HUD HECM program, but jumbo or private reverse mortgage programs offer programs available down to age 55.

Can you outlive a reverse mortgage?

Drawing all available funds, you can outlive the benefits under a reverse mortgage. Still, you can live in the home mortgage-payment-free for as long as you continue to pay the taxes, insurance, and property charges, even after your available funds are gone. The earlier you take the loan, the longer your balance will accrue interest. While it’s not required, you can make payments—even if it’s just on the interest—on your reverse mortgage throughout the loan term.

Can I get a reverse mortgage if my daughter (Co-owner of the house) is not yet 62?

Yes, you can, but you need to know there are possible repercussions for doing so with an underaged co-owner who is not a spouse. Your daughter would be considered a non-eligible, non-borrowing co-owner of the home. Before HUD’s final rule in 2017, this distinction didn’t even exist. Before then, any co-owners who were not eligible for the loan were forced to Deed off the title for the reverse mortgage to go through. Now, they can remain on title but are still not on the loan and must agree to the loan terms. The loan terms state that when the time comes that you, the eligible borrower, are no longer living in the home as your primary residence, the loan becomes due and payable. This means the loan becomes due and payable when you pass or must move out of the home permanently. Your daughter would be forced to repay the entire balance owed at that time, sell the home, or face foreclosure.

Can your heirs join you in a reverse mortgage if they meet the age requirement?

Yes, if your heirs are 62 years or older, are listed as owners on the property title, and reside in the home, they can be included in the reverse mortgage alongside you. They don’t need to be your spouse to qualify. However, once a reverse mortgage is in place, you cannot add new individuals to the loan agreement.

Can I obtain a reverse mortgage if I have less than 50% equity in my home?

Yes, the 50% equity figure is a general guideline, and your eligibility may vary based on age. Reverse mortgage benefits increase with the borrower’s age, meaning the older you are, the more you might qualify for. This is because reverse mortgages do not require payments during your lifetime, and lenders consider your age to determine how much of your home’s value you can borrow against. Essentially, the thinking is that younger borrowers, starting at 62, will likely accumulate more interest over time if they maintain the loan until their passing, compared to older borrowers, say at 82. The HUD guidelines incorporate these age-related factors when calculating the loan amounts you might be eligible for.

In Texas, do both applicants for a reverse mortgage need to be at least 62 years old?

Indeed, they do. In Texas, every applicant for a reverse mortgage, including married couples, must be 62 or older. This requirement applies to all spouses involved.

My spouse and I are 62, but his name is not on the mortgage. If I died before him, would he be allowed to stay in the home with the reverse mortgage?

You would execute a Grant Deed from yourself to yourself and your spouse and close the loan in both your names, making you both eligible to remain in the home after the other passed or left (as in to live in hospice care should that become necessary). If you choose to keep the property as separate property (yours alone), he would be an ineligible spouse. As an ineligible spouse, the loan would become due and payable when you no longer live in the property as your primary residence (whether due to death or any other reason). He would still need to participate in the loan in some ways, acknowledging that he was aware of the loan, that he was not a borrower, and that the loan became due and payable when you no longer lived in the home as your primary residence but he would not sign the legal documents. Depending on your plans for the property title, there may be no benefit to keeping him off the title when one of you passes, but that depends on your circumstances and goals. I suggest you both discuss it and check with your family attorney.

ARLO recommends these helpful resources:

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Have a Question About Reverse Mortgages?

Look no further. Michael G. Branson, our CEO, brings a wealth of knowledge directly to you. With a robust 45-year tenure in mortgage banking and 19 years dedicated solely to reverse mortgages, he's the expert you want on your side.

Post your question in the comments below and anticipate a personalized response from Mr. Branson himself, typically within one business day. He's here to illuminate all angles of reverse mortgages, ensuring you're equipped with the knowledge to make informed decisions. Take this opportunity to gain insights from a seasoned professional.

16 Comments on this Article

Raymond
May 13th, 2024

Can a reverse mortgage be obtained if one person is 90 and the other is 60? Both names are on the deed.
Reply to Raymond
- Michael Branson
  May 13th, 2024
  
  Hello Raymond,
  They can if they are married for the HUD program, which requires borrowers to be 62 years of age. The younger spouse would be considered an eligible non-borrowing spouse. The younger spouse wouldn't be on the loan, and if the 90-year-old spouse passed first while there were still funds left in the line of credit, the younger spouse could continue to live in the home under the same terms but would not have access to any remaining funds left in the line.
  If the two parties are not married, the younger individual would be eligible as well as the older only if they consider a proprietary (often called jumbo) reverse mortgage. The minimum age for the proprietary program in most states is 55. Some states still have their own minimum age requirements, though, so it might depend on where you live.
  Reply to Michael
Celeste
May 23rd, 2023

My husband and I are 59. Can we do a reverse mortgage?
Reply to Celeste
- Michael Branson
  May 30th, 2023
  
  Hello Celeste,
  
  The HUD HECM (Home Equity Conversion Mortgage) reverse mortgage requires the borrower to be at least 62 years old. However, there are proprietary or private programs that do go down to the age of 55.
  The problem that most borrowers see with the private programs is that they do not give as much money as a percentage of the home's value as the HUD programs, and the rates are typically higher.
  That's why they are usually used for Jumbo or higher dollar-valued homes. They can be very useful for expensive homes and non-approved condominium projects, sometimes for borrowers who are not yet 62 years of age, though when the home's value works for them.
  
  I would encourage you to visit our website and check our calculator to see if the proprietary programs would be beneficial for you. It's quick and easy and does not require you to supply any personal information (such as your social, etc.), and if it is beneficial for you, we can continue, or you can stop there without any obligation. It's worth a try.
  Reply to Michael
Andrew G.
May 2nd, 2022

My father has a reverse mortgage with no equity in the home. We have an enhanced life estate deed naming me as the remainderman. I just turned 62. As a remainderman can I apply for a reverse mortgage to keep the home. My father and I desire this.
Reply to Andrew
- Michael Branson
  May 2nd, 2022
  
  Hello Andrew,
  
  Yes, you can apply for a reverse mortgage once you own the property but you would need to qualify for the loan under the current parameters of the program. This means that you would need to get the reverse mortgage in your name with the loan program and amounts available for a 62-year-old borrower at that time.
  That would require you to bring cash into the transaction to bring the loan to value to the current requirement for the program you wished to obtain and at 62 it would be somewhere around 50% of the value of the home.
  
  The reverse mortgage is not and never was intended to be a multi-generational loan. It sounds like it achieved it purpose and has allowed dad to continue to live in the property without having to make a mortgage payment and he can still stay there for the rest of his life. When dad passes though, that loan becomes due and payable.
  HUD will give you the option to keep the home by paying the amount owed or 95% of the current market value, whichever is less, sell the home or simply walk away and owe nothing.
  If you wish to keep the home and cannot qualify for a new reverse mortgage due to the low loan to value requirements of the program and the mortgage paydown that would be required in this case, you would need to consider traditional or forward loan financing that would require you to make a monthly payment but will accommodate higher loan to value ratios.
  Reply to Michael
GRJ
October 8th, 2021

Dear Arlo,
I am 59 and own a home with a loan on it. The property value is $320K and the current loan balance is $140K. I have moved my mother in with me as she can no longer live alone - she is 82. Can I take out a reverse mortgage adding my mother to the title and loan to qualify for the minimum age requirement? If yes, what would happen if my mother passed away before I reached the age of 62? Would I be able to stay in the home? Thanks!
Reply to GRJ
- Michael Branson
  October 8th, 2021
  
  If your mom had a history of living in the home, you could add her to title for the reverse mortgage. You cannot move someone in and add them to title to qualify for a reverse mortgage though.
  Also, if your mom's occupancy was accepted as I indicated, if she was the only one on the loan and passed, the loan would become due and payable at that time. You would need to be able to refinance the loan with a new loan in your name to remain in the property.
  If you were not able to qualify for a reverse mortgage at that time (due to age or underwriting considerations), then you would need to be able to qualify for a standard forward loan or you would need to sell the home at that time.
  Reply to Michael
Art A.
August 14th, 2020

Hello ARLO, I have been researching reverse mortgages a lot as an option to supplement retirement income. While I am only 43 right now, it seems as if the best possible solution with this is to obtain a reverse mortgage line of credit at age 62, and then only use it if/when necessary. Do I have to speak to a counselor now since I have additional questions, or would you be able to answer some questions that I may have regarding a reverse mortgage? Please let me know. Thanks.
Reply to Art
- Michael Branson
  August 14th, 2020
  
  Hello Art,
  
  While I admire your advance planning, I think you may be a bit premature on any detailed questions. The program is subject to changes as HUD deems needed and has changed radically at times over the past 6 years.
  I really cannot tell you what it might look like in 19 years and any information you receive now may not be worth the time it took to gather. The advice I give you today may not be the same as the advice I would give you at that time based on current HUD program parameters, rates, and options available.
  We have had entire programs come and go over the past 19 years and there is no way to know if that will be the case again over the next 19 so my advice would be to keep an eye on the program and keep it in mind as one of your available options but start to really drill down on program availability as soon as you get within about 6 months of eligibility and you know what you really have to work with and if it is a viable program for you given your circumstances at that time.
  Reply to Michael
Linda S.
June 2nd, 2020

My daughter and I are on the mortgage and I am 70. Can I get a reverse mortgage?
Reply to Linda
- Michael Branson
  June 2nd, 2020
  
  Hi Linda,
  
  You could refinance into a reverse mortgage but your daughter would need to approve the terms which would allow the loan to be due and payable if for any reason the home is no longer your primary residence since she is not yet 62 and would not be a borrower on the reverse mortgage.
  The means that when you pass or move to assisted living, the loan would become due and your daughter would be required to pay the loan off at that time. That might mean she would need to refinance the loan, sell the property, or pay it off with other funds available to her.
  If she were unable to do so at that time, the lender would eventually begin a foreclosure. For this reason, I would not advise a reverse mortgage in just your name now if your daughter does not have plans or ability to pay off the loan or move when the time comes that the loan must be repaid.
  Reply to Michael
Denise D.
February 21st, 2020

I am 56 years old and I own my home and I'm the sole owner of the home on the deed. I have no mortgage and want to know if I am eligible for a reverse mortgage?
Reply to Denise
- John
  May 19th, 2020
  
  Hi, we are 61 years old and have a great deal of equity in our house. Could you recommend and products that might help us use some of our equity?
  Reply to John
  - Michael Branson
    May 19th, 2020
    
    Hello John,
    
    The reverse mortgage requires you to be a minimum of 62 years of age to close the loan (you can apply up to 60 days before your 62 birthday). If you wait until that time, there are several reverse mortgage programs available.
    If you look at other programs in the meantime, as long as you do not exceed 60% of your available reverse mortgage proceeds for the payoff of those loans, you can still pay them off with a reverse mortgage when you turn 62 but if you need more than 60% of your available proceeds just to pay off a lien that is less than 1 year old (and in the case of a home equity loan since you withdrew funds), the reverse mortgage will not pay off the new loan or withdrawals beyond that 60% threshold.
    
    To determine what that amount would be, I would encourage you to visit our online calculator at and put in your information. For the time being, use a birth date that would make you exactly 62, your property address (or at least the correct zip code so the fees are accurate) and the calculator will determine what is available to you at this time.
    If it shows that after payoff of any loans of record you have $100,000 available to you at closing or in the first year, remember that if you exceed $100,000 on any other interim financing and intend to still pursue a reverse mortgage when you do turn 62, the loan will not pay off any loans that exceed this amount even though you would have more money available to you after 12 months.
    
    The other thing I would caution you is that property value must be substantiated by appraisal, HUD can change their program parameters and interest rates are subject to change. All three could affect the amount of money available to you under the program.
    If you do plan to do some sort of interim financing and repay it with a reverse mortgage when you turn 62, I would caution you not to cut the amount too close to what you think you can get at that time and then find out that circumstances have changed and you cannot get as much money as you expected.
    It would certainly be best to wait until you turn 62 if the reverse mortgage is your ultimate plan and just do the loan then unless you are extremely comfortable with any payments the line of credit carries should circumstances change and you need to make them for a long time.
    Reply to Michael
Richard
April 24th, 2013

Homeowner's age is an important factor in how much he is allowed to borrow. Lenders use the age of the youngest owner to help determine the maximum loan amount. Lenders also consider the present interest rates and fees, along with the home's appraised value, to determine the loan amount.
Reply to Richard

REVERSE MORTGAGE AGE QUOTE

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