Reverse Mortgage Age Requirements: Choosing the Right Program for Your Needs

October 5, 2024

Reverse mortgages offer older homeowners a way to access the equity in their homes without the burden of monthly mortgage payments. The most popular option is the Home Equity Conversion Mortgage (HECM), insured by the Department of Housing and Urban Development (HUD). This program provides a safe and reliable way for homeowners aged 62 and older to tap into their home equity.

In addition to HECM, proprietary reverse mortgages are available, with some programs accepting borrowers as young as 55. These private loans expand the options for homeowners who may not meet the HECM age requirement but still want to take advantage of their home’s equity.

Understanding the age requirements for HECM and proprietary reverse mortgages is crucial if you’re considering using your home equity to support your retirement.

Let’s explore the details to help you make an informed decision.

Table of Contents

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

• 2024 HECM Reverse Mortgage Benefits by Age

• 2024 Proprietary Reverse Mortgage Programs for Age 55 and Up

• 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	37.6%	$1,149,825
65	39.7%	$1,149,825
70	43.3%	$1,149,825
75	46.1%	$1,149,825
80	50.5%	$1,149,825
85	56.4%	$1,149,825
90	63.1%	$1,149,825

*Principal Limit Factors taken from HUD.gov using an example expected rate of 5.625%. 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 Reverse Mortgage Programs for Age 55 and Up

Homeowners who are 55 and older but not yet 62 can explore reverse mortgage options through “Jumbo” or “Proprietary Programs” available. Unlike the HECM program, these private loans are not backed by HUD, meaning no mortgage insurance is required.

While the eligibility requirements and property criteria may vary slightly from the HECM program, they are often quite similar. If you’re approaching your 62nd birthday but want to access your home equity sooner, it’s worth considering a proprietary reverse mortgage to see if it fits your 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?

When considering a reverse mortgage, you’ll find several options within the HECM program, including fixed-rate and adjustable-rate loans. You can also choose how to receive your funds, such as a lump sum, monthly payments, or a line of credit that you can access as needed. The best choice depends entirely on your personal financial situation and goals. While fixed-rate loans might seem attractive, there are some important factors to keep in mind.

Fixed-Rate vs. Adjustable-Rate Loans

A fixed-rate reverse mortgage locks in your interest rate, but one major limitation is that you must take the full amount available upfront. This can be a downside if you don’t need all the money right away. HUD rules restrict access to a portion of your funds in the first 12 months unless you’re using them to pay off existing liens. With a fixed-rate loan, any unused amount from the initial draw is lost.

In contrast, adjustable-rate loans offer more flexibility. Not only do adjustable rates tend to be lower than fixed rates, but borrowers may also receive more funds overall because of the lower interest rate. Adjustable loans also allow multiple ways to access your money, giving you options that a fixed-rate loan doesn’t provide.

Flexible Payment Options with Adjustable-Rate Loans

With an adjustable-rate reverse mortgage, you can choose from a line of credit, monthly payments, or a combination of both. The line of credit option is especially appealing because it grows over time at the same rate as your loan’s interest accrual and mortgage insurance premium (MIP). This growth isn’t interest you’re earning, but it increases your borrowing power in the future, giving you access to more funds later if needed.

You’ll only accrue interest on the money you’ve borrowed, so having a larger line of credit available won’t cost you anything unless you choose to use it. This flexibility makes adjustable-rate loans a better option for many borrowers who want to keep their financial options open.

Age FAQs

What is the minimum age for a HECM Reverse Mortgage?

The minimum age for a HECM reverse mortgage is 62. You must be at least 62 years old by the time the loan closes to qualify.

What is the minimum age for a Jumbo Reverse Mortgage?

Most jumbo reverse mortgage programs also require borrowers to be 62, but some options are now available for borrowers as young as 55.

My wife and I are 71 and 69. Would it benefit us to wait until she turns 70 before applying for a reverse mortgage?

While it’s true that older borrowers may receive more, waiting six months might not always be the best choice. If you are within six months of your next birthday when closing the loan, you already receive the benefits of your higher age. However, interest rates also affect how much you receive. If rates rise before you lock in your rate, waiting might mean losing more from higher rates than you’d gain from turning a year older. If rates go down, you can benefit from a one-time adjustment at closing, but rising rates can have a bigger impact than waiting for the next birthday.

Is there any age limit for getting a reverse mortgage?

To qualify for a HUD HECM reverse mortgage, you must be at least 62 years old. However, some jumbo or private reverse mortgage programs are available for borrowers as young as 55.

Can you outlive a reverse mortgage?

While you can outlive the funds you receive from a reverse mortgage, you can stay in your home mortgage-payment-free as long as you continue paying taxes, insurance, and property charges. Keep in mind, the longer you have the loan, the more interest builds up. You can choose to make payments toward the interest or the loan balance, but it’s not required.

Can I get a reverse mortgage if my daughter is a co-owner and under 62?

Yes, but there are important considerations. Your daughter would be considered a non-eligible co-owner. The loan becomes due and payable when you no longer live in the home as your primary residence, whether due to moving out or passing away. At that point, your daughter would need to repay the loan, sell the home, or face foreclosure. Be sure to carefully review the terms before moving forward.

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

Yes, if your heirs are at least 62 years old, live in the home, and are on the property title, they can be included in the reverse mortgage. They don’t need to be a spouse to qualify. However, once the reverse mortgage is set up, you cannot add anyone new to the loan agreement.

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

Yes, but your eligibility may depend on your age and other factors. As you get older, you may qualify for more funds because the amount you can borrow increases with age. The idea is that younger borrowers will likely accumulate more interest over time than older borrowers. HUD takes this into account when calculating how much you’re eligible to borrow.

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

Yes, in Texas, all applicants, including both spouses, must be at least 62 years old to qualify for a reverse mortgage.

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

If both of you are added to the title, you can close the reverse mortgage with both your names on it, allowing your spouse to stay in the home if you pass away. If you choose to keep the property as separate property (in your name only), your spouse would be considered an ineligible spouse, and the loan would become due when you no longer live in the home as your primary residence. It’s important to discuss your options and consult a family attorney to ensure your plans fit your long-term goals.

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.

18 Comments on this Article

Mary O.
October 5th, 2024

Can I get a reverse mortgage at 89? Is it harder, and do you receive less money?
Reply to Mary
- Michael Branson
  October 5th, 2024
  
  Hello Mary,
  Yes, you absolutely can get a reverse mortgage at your age. In fact, not only do you not receive less money than a younger borrower, you actually receive more! HUD determines the amount of money borrowers receive based on several factors, and one of them is age. Older borrowers are statistically less likely to remain in the home long enough to accrue as much interest as younger borrowers with the same home value. Therefore, the risk to HUD is lower due to the shorter anticipated remaining life expectancy. At your age, you will receive significantly more money than a 62-year-old borrower with a home of the same value.
  Let us show you what is available to you. It's easy to visit our website and use our free, no-obligation calculator. We'd be happy to show you what you can expect to receive from a reverse mortgage, with no pressure or obligation.
  Reply to Michael
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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The minimum qualifying age for a reverse mortgage is 55

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