Reverse Mortgage Spouse

Hello Mike,

I am afraid that it is all or nothing.  It is not possible for a lender to encumber half of a property with just one owner’s approval and not the other other’s participation and approval on the loan as well. 

If the lender had to enforce any of the provisions of the loan which can include up to foreclosure if the borrower does not pay taxes and insurance, how would the lender foreclose on half the property? 

Also, married applicants must have the participation of their spouse, even when that spouse is not on the loan.  The spouse still must attend counseling and there are several documents the spouse must sign in which they acknowledge their rights and obligations under the program.

Hello Lynda,

If you are married, there is always some degree of participation from your spouse required so if you are asking can you apply separately, the answer is yes in most states but if you are asking if you can do it without your spouse’s knowledge, the answer is no. 

If you reside in a state like Texas, you cannot apply separately due to heirship laws in the state.  And if you live anywhere else, you can get a reverse mortgage without your spouse being on the loan, but if you are married, your spouse is always involved in the loan, must complete counseling and there are many documents they must sign (even if they are not a borrower on the loan). 

Furthermore, if you choose to have a non-borrowing spouse, if that spouse lives with you at the time the loan is closed, they are considered an “eligible non-borrowing spouse” and their age is also considered in the calculations to determine the amount of money you will receive. 

To remain eligible, they must continue to live in the property as their primary residence, they must claim their eligibility as soon as you pass to remain in the home under a deferral of the due and payable clause and if they are not on title at the time you close the loan, they must be put on title within 90 days of your passing.

If your spouse does not live in the property then they are not eligible for the loan and in that case, you would be applying without your spouse and the loan would include only the occupying, eligible spouse but even then, if you are married, there is always some participation required of the spouse of a reverse mortgage applicant so that they are aware of their rights, protections and how the program affects them.

Most of the time, there are few advantages to not taking the loan in the names of both borrowers.  In some cases, borrowers feel that they need to do it because of credit issues with one spouse or medical concerns or other reasons of their own.  The one thing you really need to remember is that there is a risk associated with not having both borrowers on the loan. 

If the borrowing spouse passes, then eligible non-borrowing spouses are covered under the deferral but if that borrower has to leave for other reasons (i.e. assisted living), the remaining borrower is not covered.  The deferral only covers the death of the borrower. 

We have also had borrowers write into our blog about issues where borrowers divorce later in life and the non-borrowing spouse was not able to remain in the home after the borrowing spouse left.  All things you need to consider carefully when deciding what you do.

I am sorry to hear of this and unfortunately, the best steps are the ones the husband and wife should have taken long before now. 

Let me explain.  I do not encourage anyone to get a reverse mortgage without including your spouse unless you have other provisions that protect your spouse should you pass first.  That might include being able to include them as an eligible non-borrowing spouse, an insurance policy that pays off the reverse mortgage when the borrowing spouse passes another property to which the non-borrowing spouse can move or plans for a sale and relocation, etc. 

Any way you look at it, when the borrowing spouse passes or must leave the home, if the spouse is not an eligible non-borrowing spouse, that loan becomes due and payable, and you need to have your plans for such an event before that time comes.  It’s too late to talk it over and start discussing options after the borrowing spouse passes and none of us knows when that will be.

Secondly, every married couple who does not have both spouses on the loan should have written a letter to the lender authorizing the lender to speak to the spouse and the spouse to the lender on all things relating to the loan the day after the loan closes.  There is no need to wait and as you have found, lenders cannot just start talking to anyone on a loan and must be sure the people to whom they release information are bona fide heirs if there are no prior authorizations in place. 

You may want to speak to an attorney early on to discuss a trust as well but here again, it’s a bit too late to think about the trust (at least for this issue) now.  Also, every reverse mortgage allows the borrower to add anyone to title they wish if the borrower also remains on title and at least one original borrower is still living in the property. 

This means that if you are the spouse who was not on title to the home at time of purchase or refinance, your spouse can deed the home to themselves and you now, before they pass so that you do not need to try to change the title later when your spouse is not available to sign the Deed to add you.

Finally, the wife must realize that the loan is going to be called due and payable.  For her to keep the home, she is going to need to refinance the loan now with a new loan in her name.  You mentioned credit issues and I don’t know if that would even be an option for her at this time.  But the sooner she comes to the realization that she will either need to refinance the loan or sell the home, the better off she will be with making her plans. 

If the home is not in her name still, she is going to need to take whatever steps are needed to have the title transferred to her now.  She cannot sell or finance the home if she does not hold title.  Once she has the title in her name, she can investigate financing and if that is not possible, she can speak to a local real estate professional about a possible sale. 

If there is equity in the home, the remaining spouse should get it and the best way to ensure that she retains as much of the equity as possible is for her to be able to sell the home on her own terms and not be forced into a last-minute fire sale because she waited until just before a looming foreclosure.

Hello Bryan,

The only real hitch to your plan is the part where you want to be able to have her remain in the home after you pass on the loan. 

With a reverse mortgage, you can both remain in the home and you can even add anyone to title you wish or drop one or the other if at least one original borrower remains on title and is still living in the property. 

However, if you were to take her off title and then you were to pass or if you had to move to permanent assisted living or whatever reason made you leave the home, that loan would become due and payable at that time.

Hello Ling,

Both you and the property must qualify under HUD’s current guidelines for the new loan but if the condo project is approved, at the numbers you provided, the loan would probably be close, but it should work. 

I would invite you to visit our calculator to review the numbers on our calculator to see if you can work with the results and if so, there is also an option to continue if you want to get it started. 

The one thing you need to do immediately is get the title switched to your name.  You cannot get any loans unless you have the property vested with you as the owner.

Hi Jenny,

I really cannot give you legal advice and am not 100% sure what you mean by “de facto partner”.  Unmarried individuals can certainly get a reverse mortgage on a property they own in their own name as a single individual. 

There are several certifications that borrowers make, among them being marital status, occupancy and whether anyone else owns or could have an ownership interest in the property. 

Whether it can be done without any notification to an adult occupant of the home is the question that would need to be researched, especially depending on the state in which the property is located. 

I would suggest that your father-in-law speak with a lender in his state if this is something he would like to accomplish.

Hello Bryan,

The terms of the reverse mortgage state that the borrowers must live in the property as their primary residence.  It does not stipulate that you must do so as husband and wife.  Your marital arrangement or divorce will not affect the loan. 

If at least one original borrower on the loan is still living in the property as their primary residence, you are complying with the terms of the reverse mortgage.  If one of the two of you must leave the home later for any reason, the loan is still valid and not in default. 

Hello Patrick,

Theoretically, no.  To remain eligible, you must occupy the home for more than half the year which you both cannot do with two homes if you live together all year long.  Practically, if you live apart for a portion of the year so each home is occupied for more than half the year by the owner on title and is not being used as a rental, it might work.

I would be concerned the lender might call the loan though if occupancy inspections were conducted while the owner was away.  If you were applying for the loans as a married couple, HUD would limit you to one reverse mortgage, but I know of no HUD guidance in such a situation other than occupancy requirements.

Hello Maria,

Since he obtained the loan before and you are not on that loan, you are not included now.  You cannot add another borrower to an existing loan. 

You are covered as far as being able to sell the home or obtaining a new loan in that you now have title to the property, but the loan will still become due and payable when the original borrower on the loan is no longer living in the property as their primary residence. 

Selling and moving at that time may not be a great option and new financing may not even be feasible at that time on your own though.  Have you both considered refinancing the loan now with a new reverse mortgage in both your names? 

HUD allows lenders to waive the 5 times benefit rule as it is benefit enough to just gain the protections of not having to move or sell the home for the new spouse being added to the loan should something happen to the borrower who originally obtained the loan. 

I would suggest that you investigate it, so you are not forced to seek new financing or move at that time.

Hello Simon,

If you are married and your wife also occupies the home, she cannot be eliminated from the mortgage.  And in all honesty, this is a terrible idea anyway.  Many borrowers did this before HUD changed the rules in the past and ended up regretting their decision. 

Married borrowers could drop one borrower and apply separately prior to 2014 and married couples did this for several reasons – poor credit on the part of one borrower, excessive obligations, one borrower being much younger, and the loan amount being lowered by the younger borrower, etc. 

But what they did not consider is that by eliminating one of the two borrowers, if something happened to the borrower remaining on title, the loan became due and payable and the younger spouse was forced to refinance the loan at that time or sell the home and move. 

It is very difficult to think about everything at a time when your spouse passes but no one needs the added pressure of having to worry about where they will live as well. 

This is one move on the part of HUD that may seem more restrictive but after seeing the many spouses who were left trying to figure out what they would do when they could not stay in their home after a borrowing spouse passed unexpectedly, we think this was a good move by HUD. 

Hello Sandi,

This is an impossible question to answer with a simple yes or no. 

If she is on the loan, yes.  If she was not old enough at the time but is listed as an eligible non-borrowing spouse on the loan, yes, she can also live in the home for life. 

Both instances require that she continue to live in the home as her primary residence and continue to pay the taxes and insurance in a timely manner.

If, however she was not on the loan at all (i.e., she married him after he received the loan, etc.). she cannot be added to the loan after the loan closed or after the borrower passes.  That would need to have been done with a refinance transaction and a new loan while they were both living in the home. 

If she qualifies and the title of the property is in her name, she can refinance with a reverse mortgage of her own or can refinance with any other loan type now or she can sell the home at this time. 

Hello Debbie,

If the spouse you wanted to be the non-borrowing spouse did not live in the property, then no, they do not need to be added to the title or to the loan.  If, however, that spouse also lives in the home the loan could not be closed in the name of just one spouse. 

Therefore, if you want the loan to be completed when both individuals are living in the same home, then both would need to be borrowers on the loan and both would need to be on title.

Hello Annie,

There are several reasons you should have your husband add you to title and probably should have done so before now but they all revolve around keeping/selling the home if he should pass. 

Just adding your name to title will not allow you to remain in the home when he is no longer living in the property as his primary residence - that would require a refinance after you turned 62 since the loan was not originated as you are being an eligible non-borrowing spouse (only available after 2014). 

But in all honesty, if you think there is any possibility that you may want to try to keep the home, even if you sell it later, I advise you to add your name to title now and also have your husband write a letter to the lender authorizing you to speak to them and them to you on all matters relating to the loan.  The letter will allow the lender to speak to you on behalf of the loan and will make things easier no matter what you choose to do.

Don’t forget that as his heir, you have the right to repay the loan at the amount owed or 95% of the current value after he passes, whichever is less.  If this gives you any possibility of remaining in the home, it will benefit you to be on title now. 

I do not know where you are located but in many parts of the country, property values are increasing rapidly right now and in a year from now things may be different.  They also may not so it is also important to remember that the reverse mortgage is a non-recourse loan.  By being on title, you are not responsible for the loan and the only option the lender has if the loan cannot be repaid is to take the property. 

In other words, whether you are on title or not, if your husband passes, the lender calls the Note due and payable and you cannot repay the loan (at the lesser of the amount owed or 95% of the current value), the only thing the lender can do is foreclose and take the property.  They cannot seek any further money from you or the estate, so you have no further responsibility or liability by going on title now. 

Good Afternoon,

Let us start with your last question and work forward.  Any two people who own a home and live in it who are 62 or over may get a reverse mortgage.  You do not need to be married. 

If you are married at the time you get the loan and later divorce, but you are both still living in the home and he later passes, there is no requirement in the loan documents that the two of you are still husband and wife at the time of the spouse’s death. 

If you meet the other requirements, you would be covered under the terms of the loan.  In addition to you living in the home as your primary residence and paying all property charges in a timely manner, those requirements include that he is also still living in the property up to his time of passing and that he has not removed himself from title prior to that time either. 

As a non-borrowing spouse, if anything should happen to him and he leaves the property before his passing, the lender would call the loan due and payable.  If you believe that a divorce is imminent, you may wish to wait until you are also 62 so that there are no issues with you being on the loans as a borrower, title, or occupancy.

Also See: How to use a Reverse Mortgage in a Divorce Settlement

Hello Mike,

What you are describing is an eligible non-borrowing spouse situation.  There is no need to remove your spouse from title, but they are not on the mortgage. 

If for any reason your wife in not on the title to the property, I would strongly suggest that you add her to title now so that there are no issues later. 

It is true that if she is an eligible non-borrowing spouse she can also remain in the home for life, but she does not have access to any funds remaining on the line if you pass and there are still funds left unborrowed. 

She would not be required to repay that portion of the line if she sells the home and no interest accrues on that portion, but she would not have access to those funds. 

Although the lender is selling the loan, those funds are still available to you and all you need to do is contact the new servicer as soon as you receive their information (which you should have gotten when you received the notice that the loan was being sold). 

The new servicer cannot charge you anything that was not agreed to in the original loan documents so if there was no servicing fee in the original loan before it was sold, there will be no servicing fee after they sell it.

Hi Gary,

HUD does not really make that distinction; you do when you apply for the loan. 

If you indicate that you are married, you are treated as a married couple.  If you indicate that you are single, you are treated as a single individual. 

If you marry or enter a common law arrangement after the loan closes, the new spouse/partner is not eligible under the existing loan anyway and you would need to refinance to be certain that your new spouse is covered under that reverse mortgage that is originated after your new marriage/common law arrangement.

Hello Stacey,

Yes, your mom can get a reverse mortgage, but the degree of involvement required by her husband will depend on if he is living in the home, what state the property is in, and if she needs his income for qualifying. 

He may also need to be added to title if she really wants the loan as some states like Texas will not allow a non-borrowing spouse. 

In any case, at a minimum there will be documents he needs to complete, and he would be required to attend counseling so if you are asking if she can get the loan without his knowledge and consent, the answer to that question is no.  If you are married, there will always be some degree of involvement required of the spouse. 

Hello Jim,

First let me express my condolences.  I honestly cannot answer your question. 

I do not know enough about the laws concerning COVID-19, what the circumstances are prior to that time (what lead up to and what was done before the notice on November 16^th or really anything about the case. 

Even so, I really cannot give you legal advice anyway.  If the notice was due to your spouse’s passing, I can honestly say this would be the absolute fastest I had ever heard of a lender being notified of the passing of a borrower and sending out a letter notifying the spouse that the loan was now due and payable (just about 2 weeks). 

When you say you had received a 6-month extension under the Cares Act, from whom did you receive it?  My limited knowledge of the Act was that it established a 120 day moratorium on evictions of renters in certain federally-assisted housing which I don’t know, but I don’t think would not apply to a home owned by an individual and covered by a mortgage. 

I really think you should consult with an attorney or perhaps a legal aid office in your area to determine your rights and obligations under the law and the terms of the loan.  I can only make assumptions based on your comments and one is that you are not a borrower on the loan, or it would not have been called due and payable when your spouse passed. 

That doesn’t tell me if you married after she owned the property, if you ever were on title or what, but I don’t even know if you are now the owner of the property or the heir. 

If so, you can probably get extensions on the foreclosure sale if you are actively pursuing the sale of the home and can show the lender evidence of such but again, what you need to do and what steps you need to take and the available timeframes may vary based on the questions I raised about heirship and ownership. 

I would suggest that you get the answers you need from competent legal counsel soon.

Hi Angie,

You can always put your name back on title and I recommend whatever else you do, you do go back on title with your husband and also have him write a letter to authorize the lender to talk to you and you to them on all things relating to the loan. 

That allows you to communicate with them about the loan should anything happen to your husband but that does not protect you. 

The loan still becomes due and payable at that time.  I would also recommend that you and your husband consider refinancing that loan with a new loan in both your names at this time. 

That way if anything happens to either of you, the other can remain in the home for life without the loan becoming due as long as the taxes, insurance and any other assessments (i.e. HOA dues) are paid on time. 

Adding your name to title and getting the letter to authorize you to work with the lender is the bare minimum I would advise you and any other non-borrowing spouse to do immediately. 

If you can protect yourself so that if anything ever happens to your husband I would suggest you consider doing it now while rates are low and values are strong (unless of course you plan to move anyway at that time and even then, plans change and it might still be a good idea to protect yourself while you can).

Hello Judy,

I am a little at a loss here. 

I personally do not agree with HUD in this area, but the documents you both signed are clear in that they do state that you are covered in the event that the borrower dies. 

I believe that it would have been a moot point had the annual occupancy certification been signed and completed but since that did not happen, the lender is now aware of the situation and must consult HUD for a determination. 

You should contact the lender directly to discuss with them to see if there is any possibility of an appeal to HUD for a different conclusion but do not delay. 

If they are adamant about calling the loan due and payable, both you and your husband did sign loan documents agreeing to those terms. 

You may need to consider another loan to repay the reverse mortgage or even a relocation but do not wait until after the foreclosure when you realize it is too late to act.

Hello Peggy,

I am not an attorney and cannot give you legal advice and it is time you received it.  I would advise you to contact an attorney to have them intervene immediately with both the servicer and HUD on your behalf. 

If the documents you signed do not have a date by which you must obtain title, you can prove that you acted immediately, and that the soonest it could be accomplished in your area was 5 months through a court action, I do not know how they could justify their actions but as I stated, I am not an attorney. 

Therefore, we always advised borrowers to add spouses who chose to remove a spouse to complete the loan back to title immediately after closing. 

Furthermore, we still tell people that if they did the same thing you had done and if they have not added their non-borrowing spouse back to title yet, to do it now or as soon as possible before the borrowing spouse passes. 

The loan documents state that the borrower can add others to title as long as they also remain on title and it is much easier to do while everyone is still living and of sound mind than to wait until something happens to change these facts. 

I am just sorry that your originator did not tell you to be sure to add yourself back to title right after the loan closed and not wait because this issue would not have come up if you had. 

But for now, do not wait until it is too late.  Consult an attorney to protect your rights.

Hello Susan,

HUD requires some participation of both married individuals to close a reverse mortgage. 

If one spouse is absolutely unwilling to participate in the loan process by attending the counseling session and signing the necessary forms, the borrower who is on title would still not be able to get a reverse mortgage. 

This may or may not be true of all lending products though.  The couple may wish to discuss the loan or loan options with both their spouse and a trusted financial advisor. 

If the home is entirely vested in the name of just one spouse, that individual may still be able to apply for and receive a forward loan in their name alone and that may or may not be a better option in the long run based on the couple’s objectives. 

Hello Rebecca,

Notify the lender.  If he is the only borrower, the loan will be cancelled. 

If he was applying with a spouse and she wishes to continue, the lender will need to update the file to correctly show just one borrower. 

There will be several items in their file that will need correcting/changing and it will require a new loan application package, but the lender will handle that.

Hello Nancy,

If you both live in the home, no you cannot do the loan in the name of just one spouse. 

This was not always the case.  But spouses who chose to take the loan in just one of the spouses’ names found that the remaining spouse was not equipped in most cases to keep the home as the borrowing spouse passed or was forced to move to assisted living and started filing lawsuits against HUD when they were forced to sell the home and move. 

HUD then instituted the non-borrowing spouse rules and married borrowers who are living in the home and otherwise eligible as a borrowing or eligible non-borrowing spouse can no longer receive a reverse mortgage without including their spouse.

Hello Charles,

There is no rule that requires couples to be married. 

If both individuals are both at or over the age of 62, live in the home and are on title, you can get the loan in both peoples name and all options are available which includes a lump sum, a line of credit, a monthly payment or a combination of the methods. 

If however one of the two individuals are under the age of 62 you would not be able to apply with the younger individual qualifying as an eligible non-borrowing spouse where that person is not on the loan but could still remain in the home for life if something were to happen to the borrower. 

An eligible non-borrowing spouse does not have access to payments or funds remaining on the line of credit if something happens so that the borrowing spouse is no longer living in the home (i.e. death or permanent move to hospice care facility) but as a non-borrowing spouse, they can remain in the home without making any mortgage payments for life. 

This option is not available to unmarried applicants who are not 62 or over and not otherwise eligible for the loan.

Hi Jule,

You cannot be “added” to an existing loan but since the loan was done so long ago with HUD limits were so much lower, you may be able to refinance the loan now adding you to title and to the new loan as an eligible non-borrowing spouse at this time. 

You still are not old enough to be on the reverse mortgage as a borrower, but since HUD changed the rules in 2014 (effective in 2015), you can receive protection as an eligible non-borrowing spouse on a refinance completed under HUD’s current program. 

Loan limits are up and rates are down so now is a great time to investigate a refinance.

Hello Deborah,

In 2015 HUD had non-borrowing spouse protections in their loans. 

Check your loan, you are probably an “eligible non-borrowing spouse” which would allow you to remain in the home for life as well. 

If there was any money left unborrowed on the line of credit, you would not have access to the funds but you would not have to leave the home as long as you live in it as your primary residence and pay your taxes and insurance on the property. 

You do need to put the property back in your name now as soon as possible.  This is something the lender will look for you to complete quickly. 

But check you loan documents.  If you closed in 2015, you should be covered. 

Those rules were announced in 2014 and went into effect in 2015.

Hello Cynthia,

A copy of the marriage certificate is not a document lenders typically request and failure to obtain a copy of a non-critical document would certainly not render the obligation invalid.  I have not seen the same article you reference so I cannot comment on the contents or circumstances but I can tell you that there are very few things that can render a valid lien null and void. 

Hello Brian,

You would need to speak with the lender on all matters relating to the loan now, the mortgage broker no longer has any status in your loan file. 

However, not even the lender can add a spouse to an existing loan.  There is no way to add a new borrower to an existing loan. 

If you wish to be certain your wife is also on a reverse mortgage and covered under the terms now, you would need to refinance and take out a new loan and in that case you could talk with any lender. 

I would encourage you to shop around to be sure you received the best deal.

Hello Rose-Marie,

I am a little unsure what to tell you. 

The only way you could have paid $23,000 would be if the lender refinanced the loan and that was needed to do the new loan in both your names. 

If that were the case, you would also be on the new loan and there would be no issues at this time. 

If they did not refinance the old loan, I would certainly find out where your money went, but I would also advise you and your husband to look into refinancing it now in both your names. 

If you have a reverse mortgage on the property in both of your names, you can also remain in the home for life regardless of who passes first.

If you choose not to get a new loan, the lender cannot just kick you out, but they can and will call the loan due and payable when your husband no longer lived in the home as his primary residence pursuant to the terms of the loan. 

At that time, you would either need to repay the loan (either with cash you had or a new loan) or sell the property. 

If you were unable to do either, sooner or later the lender would be forced to foreclose on the loan and at the time the property was sold at foreclosure auction, then you could be evicted from the home as you would no longer own it at that time. 

I would encourage you to investigate a refinance now so that this cannot happen.

Hello Marie,

If you took out the loan in 2015 or later, he should be listed as an eligible non-borrowing spouse and he would be protected, being allowed to live in the home for as long as he maintained the home and paid the taxes and insurance in a timely manner. 

If your loan was originated prior to that time, he is not covered on the loan.  The loan would become due and payable should something happen to you under these circumstances and you no longer occupied the home as your primary residence. 

The only way to change that would be to refinance the loan now either in both your names and with him as an eligible non-borrowing spouse under the current program rules.

Hello Nona,

What it means is that due to the heirship laws in Texas, you cannot do a loan with a non-borrowing spouse. 

If you want a reverse mortgage in Texas as a married individual, your spouse must also be on title and on the loan and yes, that will give him an ownership interest in the home. 

I am not an attorney and do not know if there is any legal way to set up some way to limit his ownership rights with trusts, etc. and for that information I would need to suggest that you contact an estate attorney in Texas.

Hello Marietta,

You need to contact the lender and send them the information showing that you have been attempting to probate the property and sell. 

Let them know that you did not abandon the property but that you were required to move so that the real estate agent could begin the work necessary to sell the property. 

But let’s be honest, it you left the home unsecured and the lender was unable to reach you, they may have been forced to secure the home so that it was not occupied by transients in the meantime. 

You need to contact them immediately and you may need the assistance of a real estate attorney if things are not progressing quickly enough as you do not have unlimited time.

Hello Harold,

There are no terms against your getting married in your loan, just that you continue to occupy the property as your primary residence. 

If each home continues to be the primary residence of the mortgage holder, you are meeting the terms of the loan agreement. 

If at any time you decide to change your living arrangements, I would suggest that you consider refinancing the home whichever of you is not living in or selling that property though before the lender determines it is no longer a primary residence and calls the Note due and payable for non-occupancy. 

That can lead to a forced sale that is not on your timeframe or even to a foreclosure if you are unable to refinance or sell the property in a timely manner.

Hello, 

You must be a spouse to be an eligible non-borrowing spouse if you are not yet 62.  This would be the case if a borrower wished to add a spouse who was not on the current loan and was also not yet 62 years of age. 

However, if you are both age 62 or older, there is no requirement that you be married, he can add you to title and refinance the loan with both your names on the loan.  There is no requirement that borrowers be married on a reverse mortgage and we often do them for family members. 

If you are both over 62, both live in the home and are on title, there will be no problems regarding the fact that you are not married.

Hello Candace,

If you are still married, then yes, your spouse would be required to attend the counseling session. 

Hello Lori,

If you are a married individual, there will always be some level of involvement from your spouse. 

If your spouse does not own the home and is not on title to the home, you can do the loan in your name alone but your spouse would still be required to attend the counseling and there are several documents your spouse must sign but it would not be the actual Note, Deed of Trust, etc. as they would not be on the loan. 

And if you live in Texas, they will not allow the loan to be completed with a non-borrowing spouse if you are married. 

You need to verify whether or not there are any restrictions in your state but remember, even if the state has none, your spouse will need to be counseled and will be signing some documents to acknowledge their rights and what the loan means.

Hello Larry,

HUD no longer allows married individuals to obtain reverse mortgages in the name of one spouse alone unless the spouse is not living in the property and as such is not eligible for the loan (even as an eligible non-borrowing spouse). 

This was not always the case.  HUD originally allowed spouses to obtain reverse mortgages individually and they would often do so just using the older borrower so that they would receive more benefit (higher loan amount). 

But then as borrowers passed and the remaining spouses found themselves with no place to live because the loans became due and payable because they were not on the loan, with the help of AARP, many began lawsuits against HUD and lenders saying allowing the spouse to do the loan separately was predatory even though it was the borrower’s request at the time.

HUD changed this procedure and now allows even underaged spouses (those under the mandatory age of 62) protection under the reverse mortgage program as an eligible non-borrowing spouse and we must consider all married individuals living in the home. 

Hello Pattie,

If the two of you are still married, for him to complete the transaction, you must agree to the terms of a non-borrowing spouse which means that you are not covered by the terms of the loan and you are aware of this. 

If you are divorcing, he can wait until the divorce is final and at that time he would not need any participation from you but until such time as he is single, there will be things needed of any spouse for him to complete the loan. 

This is true even if that spouse is not going to live in the property and is not on title.

Hello John,

HUD allows non-borrowing individuals to remain on title now.  This was not always the case, and, in the past, non-borrowing individuals would need to be removed from title before the loan could close. 

Hello Sue,

Yes, you can do the loan on your own in most states but as your spouse, your husband will be required to attend the counseling and will need to sign some of the disclosures.  In Texas, he would be required to be on the loan as well.

Hello Andrew,

If at least one original borrower remains living in the home as their primary residence, the loan is still intact and nothing changes.

Hello Danell,

I cannot give you legal advice and I would advise you to contact an attorney as soon as possible.  I can tell you that he should not be able to remove your name from title to a home without your signature so if you never signed any Deeds (Grant Deed or Quit Claim), I would also tell you that you need to have your attorney look into this as soon as possible.

I would imagine he would want to file something to prevent any possible sales until the matter is resolved but he would need to advise you there.  Your attorney will also need to advise you regarding the bank accounts.  

I think it makes a difference if the account is an “and” account or and “or” account with two people on the account.  I believe if the account was set up so either of you could act without requiring the signature of the other, the bank acted correctly but your attorney can advise you as well as what recourse you have now against your spouse, probably in the divorce settlement.

Hello Virginia,

Firstly, keep in mind that the current loan is not a “30-year reverse mortgage”.  It remains valid until he no longer lives in the home and then the loan becomes due and payable. 

Seven years ago, there was no eligible non-borrowing spouse designation but there is now. 

You both could refinance the loan with you on the new loan at this time even though you are not yet 62 and you would have protection on the new loan allowing you to remain in the home for life under the terms of the loan except that you would not have access to any funds still remaining on the line of credit if you were not a borrower. 

To have full access to any loan proceeds, you would need to wait and refinance after you also turn 62 and then you would also be a borrower on the loan. 

Otherwise, on the current loan, if your spouse passes or must move to a care facility, etc., the loan would become due and payable at that time and you would need to either refinance the loan with a new loan or sell the home. 

Are you on title to the home currently?  If so, I would also advise you to be sure that the lender has an authorization from your husband to work with you and you with them on his behalf all matters relating to the loan. 

This is very important should anything happen to him and you need to work with the lender because by law they need his authorization to work with anyone who is not on the loan. 

Hello Shannon,

If I am reading your question correctly, your father and stepmother have a reverse mortgage and you are on title with them currently, correct? 

If that is the case, your stepmother can refinance the loan without you signing off of the title but just know that you will be considered an ineligible, non-borrowing person on title. 

This means that you can be on title, but you will not be on the loan.  You will still have to go through the counseling and there will be documents you must sign on the loan so that you are aware of the terms of the loan, but you will not be a borrower on that loan and once your stepmother is no longer living in the property as her primary residence, the loan becomes due and payable (just like the current loan). 

At that time, you would need to refinance the loan with a new loan in your name or sell the property if you did not have the funds at your disposal to pay off the loan with your own cash, again, just as with the current reverse mortgage.

Hello Rosemary,

If you want both spouses to benefit from all the protections of the reverse mortgage, they must both be living in the home.  Otherwise, the spouse who is not living in the property as their primary residence would be considered a non-borrowing spouse. 

You can still get the loan, but if anything happens to the borrowing (occupying) spouse, the loan becomes due and payable at that time.  Even if the other spouse wanted to go move into the property at that time, they would not be able to remain in the home under the terms of the original reverse mortgage. 

The loan would need to be replaced with new financing or the property would need to be sold at that time whereas if both spouses lived in the home, the loan remains intact as long as at least one borrower remains living in the property.

Hi Cara,

You are confusing the Deed of Trust which secures the loan with a Deed that conveys title.  You do not need to add (and in fact you cannot) add anyone to a Deed of Trust after a loan has been closed.  But fortunately, it also is not necessary.  

Also, if the original borrower remains on title, they can add anyone else they wish to title in addition to themselves.  The Deed of Trust is not affected by the addition of other family members.  But you did say something that concerns me that you should check.

If his spouse was not an eligible non-borrowing spouse, the lender may be looking at calling the loan due and payable at this time.  You should stay on top of it to be sure the property does go into foreclosure if the lender has called the loan due.

Hi Martha,

You would not be able to remain in the home under the terms of a loan done before 2010 on which you were not a co-borrower. 

I would strongly suggest that you and your husband consider refinancing the loan at this time with a new loan including you so that if anything happens, both of you would be covered with the new loan and neither of you would be forced to sell the home and move.

Hello Kathy,

Individuals who hold title together do no need to be married to obtain a reverse mortgage.  In fact, we have had many siblings also obtain reverse mortgages together. 

You do all need to be 62 or over, living in the home and be on the title when the loan closes but there is no requirement that you be married to other borrowers on the loan.

Hello Jeffrey,

It depends on the terms under which the loan was originated.  If the loan was originated in 2015 or after, and the spouse was the borrower’s spouse and living in the property at that time, the spouse would be an eligible non-borrowing spouse and in that case, the spouse could remain in the home for life under the terms of the reverse mortgage (but with no access to any remaining cash after the borrower permanently leaves the property). 

If the loan was originated in 2014 or if the borrower marries after the loan was closed, that spouse would not be covered under the terms of the loan.  If you have an existing loan under those circumstances, the only way to be certain your spouse is covered would be to refinance the loan under the current guidelines.

If you are contemplating a reverse mortgage at this time, your spouse would be able to remain in the home for life under the terms of the loan.  They would not have access to any funds remaining on the line of credit as they would not be a borrower on the loan but would be an eligible non-borrowing spouse. 

They would be subject to the same restrictions and requirements as the borrower.  The home must be the primary residence, the taxes, insurance and any other property charges must be paid on time and the home must be maintained in a reasonable manner.

Hello Beatrice,

Once you sign and record legal documents, they remain with the property until the loan is repaid. 

Even when spouses split up and the property is awarded to one through a divorce settlement, the legal documents are not re-recorded to remove the spouse leaving the home. 

If it is that important to you to not even have him appear on the loan, you would need to refinance the loan so that this loan was no longer a lien of record.

Hello Gus,

You can add him to the Deed at any time you wish.  The loan has no provision which would make this an issue and in fact specifically states that if you remain on title as well, this is allowed. 

What you need to remember though is that the loan still becomes due and payable when you are no longer living in the property as your primary residence. 

In other words, your friend will own the home, but the loan will be due and payable at that time and he will need to refinance the loan or pay it off with other means or he would need to sell the home at that time. 

Your adding him to the title would make it easier for him to obtain financing or sell the home, but it does not eliminate the need to pay off the loan when it becomes due. 

I would also suggest that you send your lender an authorization now that he can speak to them and then to him on your behalf for all things relating to the loan. 

By doing this, he will be able to contact them and communicate with them about the payoff, etc. when they otherwise would not be able to discuss the loan with an unauthorized third party.

Good Morning Gene,

It makes no difference at all whose name is on the existing mortgage.  If you also live in the property, are age 62 or over and are on title, you and your spouse can both be on the new reverse mortgage loan even if she is the only one on the current loan. 

If you are married to someone 62 or over and are not yet 62 years of age yourself, you would still be able to qualify as an “eligible non-borrowing spouse” (except in Texas where this is not allowed).

Hello Danny,

Texas is one of the only states in the US in which we currently cannot do a reverse mortgage for a married borrower with a spouse who is not yet 62 years of age.  Both Spouses must be 62 years of age or older.

Hi Linda,

There is never a prepayment penalty with a reverse mortgage so you can pay all or any portion of the loan without penalty at any time.  There are no payments due on the loan, but you can pay any amount you want at any time to slow the growth of the balance or to begin to pay off the loan.  You can pay back any portion of the lump sum you took and haven’t used if you still have some of that money left.  

If you wanted to sell the home and move, you could certainly do that as well and purchase a new home with or without a new reverse mortgage on a smaller base if you chose a lower priced home.  Then you could also make payments if you chose on that loan to repay that lower balance.

Hello Beth,

Your new husband can never be made to pay for your loan as is true for any of your heirs.  If you voluntarily leave the home, there may be a tax implication to the estate if there is a loss to the lender and HUD as a result.  My advice to you would be to sell the home if possible, and in any event check with your tax professional just to be sure before you make your final plans.  

Hello Ashley,

I am sorry, I cannot help you with this request.  The answers you seek are to legal questions and I am not an attorney nor am I licensed to give legal advice.  What I can tell you is that I would recommend that you take all correspondence to a licensed attorney in your area to determine your rights under the law. 

There is no 12 month period followed by 2 additional 6 month extensions and if the servicer gave you this information, perhaps you may have cause to obtain a stay based on the information given to you by them but I honestly do not know.  You really need to talk to an attorney as soon as possible to determine what your rights are in this case.

Hello Rich,

You cannot add anyone to an existing reverse mortgage regardless of when the loan was originated.  If you were married to her at the time but she was too young for the loan, she would still be covered as an eligible non-borrowing spouse.

She just would not have access to the loan after you passed.  If you married after the loan was already in place, the only thing you could do to protect her with a reverse mortgage on this property would be to refinance the loan with a new loan in both your names at today’s program parameters.

Otherwise, you both could use a reverse mortgage for purchase program and sell your existing property and both purchase a new home utilizing a reverse mortgage on the new home.

Hello Vicki,

Loans originated before 2015 when HUD changed the non-borrowing spouse rules do not contain protection for the non-borrowing spouse. 

Your husband can change title now to add you to the title as well because any reverse mortgage borrower can add anyone else to title at any time as long as he remains on title and is still living in the property and that will help you sell the home, etc. but it does not allow you to remain in the home after he passes under the terms of that mortgage. 

The only way to assure yourself of that would be to refinance the loan at this time in both of your names or for him to refinance with you as an eligible non-borrowing spouse if you are still not yet 62 (which I gather you are 62 or over based on the wording of your question). 

If you choose not to or cannot refinance the loan, I will still advise you to take a couple of steps right now to make things much easier for you later.  Firstly, have your husband write a letter to your lender giving you authorization for them to speak with you on his behalf and you with them on all matters relating to the loan. 

By having this authorization on file, if anything happens to your husband, you would be able to work with the lender to obtain needed information, etc.  Secondly, if you are not on title now, I would recommend that you talk to a title attorney or title company and have your husband add you to title now (and that is add you so that you are both on title). 

There are two reasons to have a title company or attorney help you do it even though it is not required for the Deed to be legal if you did it yourself.  Firstly, you want to be sure the change of title is done so that it does not create a taxable event.  Secondly, you do not want to create a cloud on your title by having an issue with your chain of title due to an incorrect procedure or document. 

Professionals will make sure that you do not accidentally increase your taxes or create problems for yourself later that you do not need. 

Hello, 

The only circumstances that would not allow you to continue to live in the home for life if you are married at the time your husband takes out a reverse mortgage is if you are considered a “ineligible non-borrowing spouse”. 

That would be the case if you were an ineligible spouse under the HUD rules which only happens in cases such as you don’t occupy the home as your primary residence, you are not on title to the property and you and your husband absolutely do not want you to be and you sign documents that you are aware that you may not remain in the home after your husband leaves the home, etc.  Some states (i.e. Texas) will not even allow such a loan to be originated. 

If you are married and are also eligible for a reverse mortgage (62 years of age or older and you live in the home), then you would be on the title to the property and on loan as well.  You could remain in the home for the rest of your life even if your husband should pass before you and you would have access to the loan proceeds if there were still proceeds available after he passed. 

If you are under the age of 62 but still on title, you would be considered an “eligible non-borrowing spouse”.  You would also be able to remain in the home for the rest of your life, even if your husband passes but the important distinction is that if there was still money available on the line of credit at the time he passed, as a non-borrowing spouse, you would not have access to those funds. 

You could remain in the home without having to repay the loan until you left the property, but you could not draw any additional funds from the loan.  And in either case, you would still be responsible to pay the taxes, insurance and any other property charges (HOA, etc.) in a timely manner.  You also must maintain the property in a reasonable manner, the same as if you were a borrower on the loan. 

Hello Shirlene,

If the loan was done with her as an “eligible non-borrowing spouse”, then she also can remain in the home for life under the terms of the reverse mortgage for life.  If they did the loan prior to 2014 when HUD changed the rules though and his spouse was not an eligible non-borrowing spouse, the loan would become due and payable at this time and she would be required to refinance the loan, pay it off with other funds available to her or sell the property as that loan would now be due and payable.

Hello Mollie,

You and your husband can still get a reverse mortgage even though one of you is not yet 62 as long as you do not live in a state that has prohibitions against it or limits lenders’ rights as a result (i.e. Texas).  The way the loan is structured is that your spouse is the borrower and even though you are still an owner of the property, you are not on the loan and would be considered an “eligible non-borrowing spouse”. 

You still have the same protection and can stay in the home for life, even if your spouse should predecease you. 

However, since you are not on the loan, if your spouse should pass before all funds available on the loan have been drawn, you would not have access to the loan so you would want to be sure that this is an option that you want to take and then be aware that if something were to happen to the older spouse, even though you could remain in the home without having to repay the loan until you leave the property, you would not be able to access any funds in the line of credit from the time the borrowing spouse left the property. 

And remember that you would still be required to meet the terms of the loan.  You must live in the home as your primary residence and pay all property charges (taxes, insurance and any HOA etc.) in a timely manner.

Hello Joe,

There is no minimum length of time you must have owned your home.  If you do own the home and it is your primary residence, you may apply for a reverse mortgage.  Also, the spouse of a borrower who is under 62 can be an “eligible non-borrowing spouse” on the loan. 

A non-borrowing spouse can continue to live in the property for life under the same requirements as the borrower (must live in the home as their primary residence, must pay the taxes, insurance and any other property charges on time and must reasonably maintain the property) without making any repayment on the home. 

The one downside for a non-borrowing spouse is that if there is any money left on the line of credit when the spouse permanently leaves the home (as from death or a move to assisted living), the non-borrowing spouse would not have access to any money left in the line of credit.  Since they are not a borrower on the loan, they cannot make further withdrawals from the line, even if there was still money available to the borrowing spouse.

If the second, underaged individual is not the spouse of the older, borrowing spouse, he/she would not qualify for the eligible spouse designation.  This means that the loan would become due and payable when the borrower permanently left the home leaving the second individual needing to refinance the loan or sell the property at that time if they wanted to remain in the home.

Hello Perry,

As long as you live in a state that allows it (Texas is an example of one that does not), you would not need to take your wife off the Deed and in fact, there is no benefit to do so. 

Your wife would not be on the loan but would be deemed an “eligible non-borrowing spouse” which would allow her to remain in the home for life as well, even if something happens to you and you pass or must leave the home before her. 

The one thing you must remember though is that since she is not a borrower on the loan, if you leave the home before her, she would not have access to any remaining funds on the loan if you had not used the entire line of credit available to you prior to that event. 

She could stay in the home for life subject to the same rules (must occupy the home and pay the taxes, insurance and any other property charges in a timely manner), but would not be able to draw any funds from the loan even if there were still funds available on your line of credit when you left the home. 

Hello Nancy,

You have a situation where you can do it one of two ways, but not a combination of both, ignoring the parts of the circumstances that you don’t find favorable.

For example, if you qualify on your own, there is no problem, you can do the loan excluding your husband but you have to realize that he is not covered if anything happens to you.  He would not be able to remain in the home under the terms of the loan once you are no longer living in the property. 

Also, you would never be able to use his income if he is not a borrower to qualify for the loan but you can use your husband’s income to reduce the family size for qualification in order to meet the residual income requirement.  However, to do this, the lender would have to run his credit and verify that his income actually did exceed his obligations in order to benefit the overall picture.

The bottom line is that if you need to use your husband at all to qualify, they are going to run his credit and verify his income and therefore, will consider both. 

You may want to see if his credit really is a disqualifier because if your income alone will not qualify you for the loan, you are in a catch 22, especially if you want to protect him as well should anything happen to you, you really should have him on the loan so it is not called due and payable when you are no longer living in the home should he outlive you or you need to go to assisted living, etc.

Hello Nancy,

If your dad is legally married, his wife must also sign several of the documents and as a green card holder, she is also eligible for the loan. 

If she does not live with him and is permanently gone, he can get the loan with her as an ineligible non-borrowing spouse (ineligible for the loan to continue on in her name if he passes because she does not occupy the property) as long as the state allows for this but she would still have to attend the counseling and there would still be documents she would be required to sign.

Hello Bill,

I can’t give you legal advice so I would not try to give you advice on any legal issues, but you need to be wary about the occupancy of the home.  If you chose to keep the home in your name only when you did your loan, in other words you did not execute a Deed at that time to yourself and your wife so that the property was in both your names, that was allowed prior to HUD changing the non-borrowing spouse rules. 

However, that changes what would happen now if you should leave the property.  If you move out of the home and she is not also on the loan, that loan would be called due and payable.  The divorce triggers nothing, but the occupancy would if you are the only borrower on the loan and you no longer occupy the property as your primary residence.  If your spouse was also on the loan, either one of you could leave at any time with no effect if at least one of you remained in the home as their primary residence.

If your spouse is not on the loan and you want to leave the property, you should consider selling the home.  If not, the lender can call the Note due and payable and will if they become aware of the fact that you are no longer in the home.  You also could be denied other benefits while you are still on that property (especially the option of obtaining an additional reverse mortgage on another property). 

If the lender calls the loan due and payable and your spouse cannot refinance or sell the property before the lender forecloses, that foreclosure would be against you as you are the individual on the loan.

Hello Joanne,

Am not aware of any such state law but I also cannot give you legal advice.  If you believe there is a state law that would preempt the terms of your loan documents, you really should consult an attorney in your area for advice.  However, I think you may be confusing the HUD program changes in 2014 for non-borrowing spouses. 

HUD made a series of changes to their program guidelines in 2014, two specific changes which that were announced in Mortgagee Letter 2014-07 and Mortgagee Letter 2014-12 that took effect with all loans with case numbers assigned on August 4, 2014 or after.  These HUD changes allowed borrowers with spouses under the age of 62 to obtain a reverse mortgage but allowed the younger spouse (termed a “non-borrowing spouse”) to stay in the property for life as well as the borrowing spouse for life as long as the non-borrowing spouse also met certain conditions.

Those conditions included living in the property, gaining title to the property within a short time after the death of the borrowing spouse (if not before that spouse’s death), payment of taxes and insurance in a timely manner and reasonable maintenance of the property.  But for this change to be effective, the loan must have been originated under the new rules, with the new loan limits and that would only be available if the loan started and the Case Number was assigned after August 4^th, 2014.  If your loan was originated prior to this time and you are not named as an eligible non-borrowing spouse in the legal documents,, you do not have this protection and the loan granted to your spouse was done on his age alone.

I would encourage you to contact an attorney at your earliest convenience as you now must make a few decisions and the time will go quickly.  If you are protected by either the current documents or some law of which I am unaware, the attorney will be able to advise you.  If not, you need to decide if you are going to try to refinance the loan or sell the property and you will need all the time possible to complete those tasks. 

Hello Carol,

In answer to your question directly, yes, you can be added to title at any time.  The reverse mortgage documents state that if the borrower is also still on title, there is no problem adding others (spouse, children, other relatives or friends, etc.) to title as well. 

My only recommendation is that if you are going to change title, be sure to get the help of a knowledgeable title company to assist you so that you do not create a taxable event or in some other way, create a cloud on the title as a result of mistakes. 

Unfortunately, we see these situations frequently when title changes are not handled by title companies or title attorneys and have heard horror stories of people being hit with huge tax increases simply because they didn’t transfer the title correctly to avoid the increase.

I would advise you to double check your loan documents and make sure you are also listed as an “eligible non-borrowing spouse” which should be the case as that went into effect in 2014.  This allows you to remain in the home for as long as you continue to abide by the terms of the loan as well, even though you are not a borrower on the loan (pay the taxes and insurance on time and reasonably maintain the home). 

As long as you were married to your husband at the time and living in the home, this was required by HUD and there should be no problems but it’s still a good idea to verify now, before you NEED to know. 

Also, remember that while you do have the right to remain in the home for life while not making a mortgage payment, you do not have access to any remaining funds on the line of credit if there are still funds available when your spouse permanently leaves the home (to go to assisted living, death, etc.). 

Hello Gary,

You absolutely can do a reverse mortgage with only one of the two spouses being over the age of 62.  The younger spouse will not be on the loan but will be listed as an “eligible non-borrowing spouse”. 

his distinction is important because the younger spouse can stay on title, will go through counseling as well and will sign some loan documents but not the Note and Deed. 

The younger spouse can stay in the property for life without having to make a mortgage payment under the same terms as the older, borrowing spouse but the important thing to know is that the younger spouse is not on the loan. 

That means that if the older spouse leaves the home for any reason (passes, moves to a care facility, etc.), while the younger spouse may remain in the home, the non-borrowing spouse has no access to the mortgage.

If there are still funds available in a line of credit or a monthly payment etc., those funds would not be available to the younger spouse and the monthly payments would cease. 

If you use all the funds at the very start to pay off an existing loan or for a purchase, this would be a moot point as there would be no additional funds that might not be available to the younger spouse. 

This only has a potential negative impact if there would be funds still available when the borrowing (older) spouse permanently left the property.  There is a difference in a very few states, but Colorado is not one of them.  If you were in Texas the answer would be different at this time but you are fine to proceed with the loan in Colorado. 

Just remember that the loan amount will be determined by the age of the youngest spouse.

Hello Matthew,

That used to be the case but not any longer.  The younger spouse will not be on the loan but will be listed as an “eligible non-borrowing spouse”.

This distinction is important because the younger spouse can stay on title, will go through counseling as well and will sign some loan documents but not the Note and Deed. 

The younger spouse can stay in the property for life without having to make a mortgage payment under the same terms as the older, borrowing spouse but the important thing to know is that the younger spouse is not on the loan. 

That means that if the older spouse leaves the home for any reason (passes, moves to a care facility, etc.), while the younger spouse may remain in the home, the non-borrowing spouse has no access to the mortgage.

If there are still funds available in a line of credit or a monthly payment etc., those funds would not be available to the younger spouse and the monthly payments would cease. 

If you use all the funds at the very start to pay off an existing loan or for a purchase, this would be a moot point as there would be no additional funds that might not be available to the younger spouse. 

This only has a potential negative impact if there would be funds still available when the borrowing (older) spouse permanently left the property.

Hello Mickey,

Great question and one that many people should consider and don’t until it is too late.  The loan is in your name alone and you cannot add anyone else to the loan later.  The only way to be sure to have someone on a reverse mortgage and covered by the terms so that they can continue to live in the property after you pass or move out would be to get a new loan in both your names now.  That would be a whole new loan and it would consider both your ages, income, credit, etc.

With regard to the property if you decide not to take out a new loan, that would be entirely up to you and whatever provisions you make but remember, the reverse mortgage comes due when you are no longer living in the home as your primary residence. 

If you choose not to take out a new reverse mortgage at this time, I would at least encourage you to talk to your spouse and decide what your plans would be should you pass before your spouse.  Do you want the property to go to your spouse or to other heirs?  This is often the stuff of which family feuds are made and we receive many questions on just this topic.

My advice is always to contact an estate attorney and have a will and a trust completed.  Make your wishes known to your family (if any) so that there are no hard feelings later and so that your wishes are followed.  The attorney can set it up so that the title will not be an issue and your spouse can either refinance or sell the home if needed without having to scramble to change title at that time, especially if there is a challenge by other family members for ownership. 

And I would go one step further.  Be sure to send a written authorization to your current reverse mortgage lender now to allow them to work with and discuss all matters relating to the loan with your spouse.  Without the written authorization, they would not even be able to discuss the loan with a third party, your spouse, children or anyone else until a court authorized them to do so through a probate or other action. 

Just know that under the terms of the reverse mortgage, you can add your spouse to title at any time and it will not adversely affect the loan and then the house would be his after you pass as the remaining title holder.  But adding him to title will not allow him to remain in the home after you no longer live in the property and it will not allow the lender to speak with him regarding the loan. 

 I can’t stress enough the importance of contacting the lender to authorize them to speak to your spouse and an estate attorney to set up the change of title or at least the mechanism to change title in accordance with your wishes. 

The reason I say to contact an attorney to set up the change of title is that counties/states have different taxation laws and rules for changes of title and the attorney will be sure to do things so that your change is not considered a taxable transaction and I cannot advise you how to handle it, but an attorney practicing in your area can.

Hello Julie,

In 2008, if a married couple wanted to do a reverse mortgage and one of the spouses was not yet 62 years of age, that spouse had to agree to deed their interest in the title to the property to the eligible spouse and the 62 or older spouse had to do the loan as a sole and separate individual. 

The married spouse coming off title still had to attend the counseling though and counselors were also supposed to advise the non-borrowing spouse of the ramifications of the action as well as the loan.  There was never a provision to add back borrowers to the loan later (or they would not need to remove them to start). 

We hear complaints like this often and it is sad.  I honestly do not know what was said to you and your husband at the time.  It is very difficult to go back 11 or 12 years later and try to second-guess the methods or motives of the individuals involved at that time. 

It is clear that you have been living in the home payment-free for this entire time and I don’t know if the reverse mortgage paid off a loan for you at that time or if you and your husband received cash as a result of the loan.  What I do know is that if the originator did not strongly advise you to think hard on your decision, he/she didn’t do you any favors. 

We always advised people of the risks involved in removing one spouse from title and advised against it for most borrowers in most situations.  If the counselor also didn’t let you both know of the consequences of removing one spouse from title and continuing with the loan, that counselor was not doing the job HUD required of them. 

The question now though is what recourse you have.  There will be a counseling certificate with both your husband’s signature and yours and the counseling protocol is to inform you of your rights as a spouse and the risks.  The loan documents your husband signed for the loan as the property owner clearly do not state that there will be any other borrowers added to title later. 

The loan documents do state that the loan becomes due and payable when the borrower is no longer living in the home and that too is part of the counseling session both of you were required to attend. Your burden of proof will be that with all of the written documents that your husband signed and the ones that you also signed, that even though they say one thing in writing you were told something else verbally and that was what you relied upon to complete the loan. 

More importantly, not only is it a matter of things you will contend no one told you but some of that exact verbiage does appear in the signed documents.

I would suggest that you look at a few options.  Firstly, if you are 62 or over now, see if you can qualify for a reverse mortgage of your own based on today’s program parameters.  If you are now the owner of the home and qualify for the loan, you may be able to get a loan in just your name that is sufficient to pay off the old reverse mortgage since the lending limits has risen since 2008.  As you stated, you can also sell the home and use the proceeds to purchase elsewhere and again, the reverse mortgage has a purchase program available if you are concerned that you cannot make payments on a new loan. 

If you really feel that you were lied to and that the lender/originator deceived you about the true nature of the loan, do you have any written correspondence that supports your assertion?  If so, you may want to contact an attorney to have your case reviewed.  Only a competent attorney would be able to let you know if you have a viable case of fraud against the lender based on the documents you have.

Hello Glen,

Once the loan is closed, the terms remain the same throughout the life of the loan, regardless of who passes first.  If there is a large age difference, the older spouse could look at a refinance to see if it would make sense at that time to refinance the loan in just his/her na

e to see if they could receive more benefits but that would be a whole new loan and they would have to qualify under current parameters.  They would not have to pay for any portion of the Up-Front Mortgage Insurance Premium (UFMIP) they had already paid, but they would have to pay the difference between the old UFMIP and the new UFMIP premium which would be higher if the house had increased in value.

The new loan would also have a new appraisal and new closing costs so the borrower and the lender would have to be sure that the costs to obtain the loan made such a loan worthwhile in the first place.

Hi Wendy,

You both need to realize that if your husband is living in the home, you too can live in the home and there are no payments due under the reverse mortgage.  However, if/when your husband must leave the home (assisted living or he passes), that loan will become due and payable. 

If this time comes before you are ready to leave the home, that could present a problem.  If he has added, you to title before then it will help you with the disposition of the property, but the loan will still need to be paid off at that time. 

That would mean that his heir (you or whoever that would be) would either must refinance the loan or sell the property.  If you are on title to the property now or are his heir and can get the title through probate this would be relatively routine. 

If you are not on title and there are other heirs that could challenge the title (children) this might not be so routine.  Different states have different laws concerning heirship and I would encourage you to seek the advice of an estate attorney in your area before the time comes that it is necessary.

What you can do now to prevent having the loan called should he pass first, would be to refinance the loan with either a forward loan or a new reverse mortgage in both your names at this time.  The forward loan would mean payments, the reverse mortgage would mean you would have to qualify under the current criteria.  Both have possible good or bad implications depending on circumstances. 

With a new reverse you might even get additional proceeds, but you might also have to bring in cash to close, depending on the balance owed and the current value of the home.  If you do not believe a refinance is possible, the two of you might also want to investigate the prospect of downsizing and using a reverse mortgage to purchase the next home. 

The house would have both your names on title and on the loan from the start and therefore, there would be no concern about one spouse passing before the other.  The biggest thing is that you need to discuss your options and make a plan now while you can instead of waiting until something happens, and you no longer have the ability to choose.

Hello Clem,

The loan is still in good standing and in full effect if at least one original borrower is still living in the property, paying the assessments and maintaining the home in a reasonable manner.  This means when more than one person is on the original loan, whether that is a married couple, multiple family members or just acquaintances and whether it is two or more people, if one or more of the original borrowers leave the home or passes, the loan is still valid and the remaining borrower(s) can also stay in the home for life as long as well as long as at least one is still living in the property as their primary residence.

Hello Abbey,

A married borrower must have some level of cooperation from a spouse to close a reverse mortgage.  If you are both on title and living in the home, both must sign all the loan documents and go through the counseling.  If you are not both in the home but you are still on title, there are still several steps including loan documents that you must sign as a non-borrowing spouse or the loan may not close.

Hello Barry,

You can be a borrower of a reverse mortgage as a citizen or a permanent resident alien with a green card but in any instance (citizen or not), you cannot add someone to an existing loan.  If your new spouse is a permanent resident alien, you can refinance the loan in both your names but that would be the only way to have a loan that would also cover her if you passed before her.

Good morning Dianne,

If the borrower applies as a single individual, is not married, and has title in solely in his name, he can obtain the loan solely.  When it is disclosed that there are two adults living in the home, there will be a form required to be signed that the co-inhabitant must acknowledge that they have no ownership interest in the property.

Hello Nancy,

I am sorry to hear of your loss.  You can contact Celink if you want but there really is no need to even do so since you are both on the loan.  There are no unforeseen issues of which you need to be concerned, as long as at least one original borrower remains living in the home as their primary residence and you continue to pay your taxes and insurance when due, the loan is fine and there are no problems.

Hello Kim,

It is both good news and bad news that HUD will no longer allow married couples to just take one borrower off the title and use the age of the older borrower to determine the benefit amount.  As in your case, it can keep some borrowers who really need the loan now from being able to get the loan when the age of the younger spouse dictates lower benefits. 

On the other hand though, if something were to happen to your husband in 5 or 10 years it would keep you from having to move with much less equity because you are not on the loan, you did the reverse and now it is due and payable but with the accrued interest you do not have adequate equity to start over at that time.  I know it may not seem like a good option, but is there a possibility of a relocation to a less expensive home that would allow you to purchase on a reverse mortgage then be protected in the new place? 

We get letters all the time from the spouse of a reverse mortgage borrower who took one their name off the title to do their loan and then regret it later when something happens to the older spouse who was on title and they don’t know what to do.  I would not recommend that action even if it was still available.

Hello Evelyn,

New spouses are not covered under the terms of an existing reverse mortgage in place before they marry.  The only way to be sure that the loan will not become due and payable if something were to happen to your spouse who has an existing reverse mortgage would be for the spouse with the loan to add the new spouse to the title of the property and then they must refinance the loan with a new loan that has both their names on the loan. There is an available exception, the spouse who owns the property can add the new spouse to title and then refinance in their own name if the new spouse is not yet 62, naming the new spouse as an eligible non-borrowing spouse who would then also be able to remain in the home for life, even if something happens to the exiting spouse. 

However, if the two can no longer qualify for  a new reverse mortgage on the property due to accrued interest, HUD guideline changes, interest rate increases, property depreciation, the fact that the new spouse is younger and the available benefits are no longer high enough to pay off the existing loan, etc., then the couple can still use a reverse mortgage to purchase a new home if that would work for their circumstances.  This most often requires a downsize into a less-expansive home when this is required, but in many cases, it will allow the couple to buy a new home in both their names with a reverse mortgage that will protect both spouses should one have to leave the home before the other due to death or disability.

Hello Kimberly,

I hear questions like this every day or two and I just hate answering them.  We always recommended that borrowers think long and hard before they removed a spouse from title to close a reverse mortgage and that if they had to do it, they have a back-up plan in place before doing so or to think twice about it.  Your options now are few.  You can seek a reverse mortgage in your own name and hope that the value has risen enough that the higher interest rates, HUD cutbacks to the program, the interest accrued on the existing loan and your lower age does not prevent you from being able to close a new loan. 

The best way to determine if you can get enough money now would be to go onto our online calculator to see if you can qualify for a new loan in your name now.  If so, you can pay off the current loan with a new reverse mortgage.  If not, your only course of action would be to either pay off the existing reverse mortgage with different financing/other funds available to you or to sell the home.

HUD has changed the rules for loans that close after 2015 so that non-borrowing spouses no longer must come off title and spouses who are not yet 62 are now protected for as long as they live in the home if something happens to the borrowing spouse.  However, borrowers who closed loans before 2015 who removed a spouse from title to close a reverse mortgage, should look take a good hard look at your circumstances now.   I suggest you do this before a spouse passes and you find yourself in the same situation as Kimberly. 

There are some steps you can take now that may help a lot later.  Firstly, add the spouse back to title NOW.  There is no reason you cannot add your spouse to title, it will not cause a problem with the loan if the borrower is still on the title as well.  It is much easier to change your title now while you are both still here to sign papers than to wait until something happens and you can change the title to add the spouse back to title at any time.

Next, check your circumstances again and see if you can qualify for a new loan in both your names at this time.  Unless you have another house, an insurance policy that will pay off the reverse mortgage or other plans for your spouse so that he/she is not left stranded should something happen to the borrowing spouse, the last thing you want to do is to leave your spouse in a time of grief scrambling for a place to live. 

If you cannot qualify for a new reverse mortgage, begin to think about alternatives now.  Remember, the more equity that your spouse has the more they will have if they must sell the home.  Consider all options.  Other options include downsizing with a new reverse mortgage purchase at that time, renting, possible insurance policies, family, consider them all.  Think about what would work so that a spouse who is remaining is not left trying to figure things out at the last minute when the person who has been their other half has suddenly left them. 

And finally, realize that a move now might be the best alternative, even if not your preferred choice.  If you took out a reverse mortgage in just one spouse’s name without the non-borrowing spouse protection and you cannot qualify for a new reverse mortgage on that house now, perhaps it is in your best interest to downsize now while there are two of you. 

No one wants to think about moving if you love your current home, but if you know that in a few years your equity position may well be worse and the risks even greater for your spouse, maybe it’s time to look at the possibility of purchasing a smaller, less expensive home now with a reverse mortgage in both your names to protect your spouse should something happen to one of you. 

Hi Mike,

Yes, you can.  If one of the original borrowers on the loan remain on title and living in the property, the loan is still active and in good standing.  I warn you though, if you file a Quit Claim Deed and something happens to your wife, none of the original borrowers would still be on title at that point and the loan would be called due and payable as a result.  I’m not sure why you feel this is needed, but you do run the risk that something happens to your wife and you are left with the lender looking for repayment on the loan before you are ready to move if that was not the plan.

Hello Lindell,

If the state recognizes your arrangement the same as a marriage, then yes, you can do a reverse mortgage with your partner included as a non-borrowing spouse.  However, if you are not married and the state does not recognize your time together as a “marriage” common law or otherwise, then you would have to be married in order to utilize the non-borrowing spouse provisions.

Hello Debbie,

I can’t comment on what the loan officer did or did not tell you at the time.  But I can tell you this, if he told you that signing your interest in your home over to another individual made no difference and had no ramifications, that is flat wrong!  Any time anyone signs a deed that grants their interest in a property to someone else, that individual is giving away all or part of their interest in the home.  The loan officer should not have given you legal advice but rather should have advised you what the loan allows and does not allow and then advised you to seek legal counsel to determine the legal effects of the actions. 

For example, the reverse mortgage at that time would not allow a borrower under the age of 62 to be on title to the property and still get the loan.  To complete the transaction before you were 62 years old, you would have had to come off title to the property pursuant to HUD rules.  I would have advised you to wait for 12 months or less until you were also 62 but I don’t know your need for expediency or if the lower benefit afforded to you at 62 vs the higher amount a 70-year-old borrower also encouraged you to complete the loan in just your partner’s name. 

He should at the least though have advised you that the loan allows you to go right back on title the day after the loan records, but that even if you are on title, that does not stop the lender from calling the loan due and payable as soon as the borrower on the loan is no longer living in the property (whether by death, because he must move to a permanent assisted living facility, you split up, etc.).  Once you have been given all the information, then it is up to you whether you still want to proceed or to wait until you are both 62 years of age or older to complete the loan.  Which by the way, I would have strongly advised if you were within a year of that target anyway?

Again, I cannot comment on what he did or did not represent to you at the time.  Did you keep any of the written correspondence from the time you originated your loan?  I know there have been times over my 40 years when someone felt I did or did not tell them something and I keep all my written correspondence with borrowers, and it has been handy when I can pull out conversations and can show them specifically where we discussed items that they just didn’t remember discussing. 

If you have conversations during which the Loan Officer gave you legal advice (and incorrect legal advice at that) against the rules of his licensing, especially if you have those conversations in writing, I would suggest that you approach the lender and an attorney to see what recourse you may have at this time.  I can’t give you legal advice and I would highly suggest that you contact someone licensed to do so before you complete a foreclosure. 

If, however, the loan officer did disclose all options (waiting and taking a lower loan amount after you turned 62 based on your younger age), then your best move now may be to investigate refinancing the loan or selling the property to protect any remaining equity.  If you do not have title to the property still, you do need to seek the assistance of an attorney to investigate what steps you can take to delay any foreclosure sales and to obtain title to enable a sale.  Any way you look at this, I would advise you to seek professional legal assistance sooner rather than later to protect your interests.

Hello Edward,

Your new spouse is not on the loan and therefore is not afforded any coverage under the terms of the loan.  The loan would become due and payable at the time you are no longer living in the property.  If you want to be sure that she is also covered under the terms of a reverse mortgage in both your names, you would have to refinance the loan with a new loan in both of your names at this time.

Hello Debra,

I can’t tell you what your tax situation is, and I certainly don’t know what your decision to Deed your home to your spouse entailed.  I also do not know what you and your spouse discussed, what the counselor advised at the time, what your reverse mortgage originator advised or what led you and your spouse to the decision to do the loan. 

I can honestly tell you that as an originator and as a company, we have always advised borrowers not to blindly remove one spouse from title, even though it was allowed, for the purpose of obtaining a reverse mortgage or in some cases, just to receive more money on a reverse mortgage.

When we had borrowers with underaged spouses approach us for reverse mortgages who had to come off title to complete the loans, we sent an additional explanation that we did not advise this action and that because the younger spouse would find themselves looking to finance the home again or sell their home at a time when financing or other purchase may not be available to them after their spouse had passed, unless the borrowers has definite plans in place such as a second home, an insurance policy that would pay off the reverse mortgage balance or other such measures that would protect the remaining, younger spouse at this time of grief, we did not recommend this loan in this manner. 

Some people accepted our advice and cancelled their plans to remove a spouse and obtain the loan, some proceeded with the loan in any event.  As I stated, I cannot comment on your circumstances at that time and what made you proceed with the loan.  If you were not advised by both the originator and the counselor of the possibilities and did not read HUD’s disclosures at the time, I can only tell you that you should have been. 

You may want to go back and review your loan documents and your communication from the originator at the time.  To all others who may still be in this situation, I encourage you to look at all options now which might include a refinance, a relocation or family support, even before you find yourself needing to do something.

I urge all borrowers with a current reverse mortgage that includes only one spouse and does not have an eligible non-borrowing spouse provision to not wait until you find yourself in a position that means you have to try to put a last minute plan together at a time of extreme grief, where you may find yourself possibly with a lower income and without the support of your loved one to try to come up with a viable alternative. 

Hi Terry,

Firstly, if the person you are referring to as your wife is your wife at the time you take the loan, she can stay in the house for life under the terms of the reverse mortgage.  Even if she is not yet 62 when you take the loan if she is on title with you, she would be able to remain in the home under the terms of the original loan without having to repay the loan when you pass as an eligible non-borrowing spouse. 

However, when you pass, whether your spouse at that time is your spouse when you close your loan or is a person who becomes your spouse at a later date, whether they are on title now or if they are your heir at that time receiving ownership of the property upon your death, they will have the option of repaying the amount owed on the loan.  So regardless of their status now, they can always repay the loan with the insurance proceeds (or from any other method as well) at any time without penalty.

Hello Esther,

Your son does not have to attend the counseling if he signs a deed removing his name from title and deeding his interest in the property to you before the loan starts.  However, if he is on title when the loan starts, he must attend the counseling as anyone on title is required to do. 

The counseling can be done in person or on the phone and if his goal is not just to block the loan entirely, attending the counseling session is a very good way for him to understand the terms of the transaction.  It’s worth an hour of his life to understand the loan terms.  If, however, he only intends to stop your ability to obtain the loan, he doesn’t have to ever attend the counseling and if he is on title to the property, you cannot get the loan.   

Hello Mary,

Your spouse cannot just remove you from title to a property once you are on title.  You would have to willingly sign a Grant Deed granting your interest in the property to him or Quit Claim Deed forever relinquishing your interest in the title to the property for the transfer to be legal.  If you never signed such an instrument, then I would say that you should seek the assistance of an attorney to protect your rights.

I must assume that the loan was closed prior to 2015 and that you were younger than 62 at the time.  That was usually why married couples removed one spouse from title – that spouse was not eligible, and they wanted or needed the loan anyway and were willing to remove the non-eligible spouse in order to complete the loan.  If this was the case, you should look both at restoring your ownership at this point as quickly as possible and what lending options may be available to you or if selling and retaining equity is a possibility. 

I am so sorry that you are facing these decisions at this time and we constantly advised borrowers not to take this action unless they had a hard plan in place in this eventuality and were sure this was the way they wanted to proceed knowing the risks.  If you feel that anything was done to title without your knowledge or consent, I would consult with an attorney as soon as possible.

Hello Kenneth,

Under the old spouse rules, the only way he could have gotten the reverse mortgage would be for you to come off title if you were not living in the home or were otherwise ineligible for the reverse mortgage.  But HUD changed that when they issued their Final Rule in September of 2017.  You can now remain on title while still being a non-resident of the home, you just are not a borrower on the loan. 

As a non-borrowing owner, you are not eligible to remain in the home later under the terms of the reverse mortgage if something were to happen to your brother and the loan would become due and payable when he is no longer living in the home as his primary residence. 

But under the new rules, you can stay on title the entire time.  You will have to be involved in the loan a little in that you will have to attend the counseling so that you are aware of the ramifications of the loan, what affect it will have on you as a title holder and your willingness to proceed, but it is not hard and the counseling can be done by telephone. 

Hello Tonya,

You would not be able to get any loan until you are listed as the title holder.  But that would be not too difficult.  You will probably have to go to court to have the property pass through probate at which time the title would pass to you upon court order and then you would be able to do anything with the property including sell it or take out a loan such as a reverse mortgage using the property as collateral.  I would suggest that you contact an attorney who handles such matters as he/she could handle this for you in the most expedient manner. 

Hello Cathi,

He can add a spouse to the title, but not to the loan.  Just as he can add you to title now which would make things easier for you if you are to inherit the home after he passes, but the loan will still become due and payable when he is no longer living in the home as his primary residence.  You cannot add someone to an existing reverse mortgage after it closes.

If you are to inherit the home, adding you to title now would ensure that you could refinance the loan, sell the property or do whatever you needed to do because you would already be on title.  I don’t know the nature of the illness, but you can also refinance the loan now in both your names and then there would be no requirement for either of you to move in the event of the passing of one of you. 

At the very least, the change in title would give you a head start on being able to take any and all steps to sell the home and protect whatever equity is in it to allow you to set up your household in another location if that becomes necessary. 

Hello Susan,

I am truly sorry to hear of this but if you did the reverse mortgage together, that is, you were both on the loan at the time, the lender cannot call the loan due and payable now while one of you are still in the home.  If, however, you came off title in order to close the loan at the time because you were not yet 62 or to get a higher loan amount then, the loan is now due and payable, and you need to see about refinancing the loan or selling the home.

I hate to hear things like this and did everything I could to talk people out of removing one spouse to complete a reverse mortgage unless they had other things in place at the time like a second home or plans to move at that time anyway that would make the loan coming due immaterial.  It is so much better now that spouses cannot come off title to increase loan funds and they are no longer required to do so even if one is under 62 years of age in order to close the loan anymore. 

I only hope that in your case, you did not come off title just to close the loan and if you did, that you still have equity and can either refinance now or sell the home and come away with equity.  You and your husband both had to attend a counseling course in which this was covered, and I am sincerely hoping that the best possible circumstances are true for you now because the lender can call the loan due and payable if you are not on the loan as well and it was originated prior to 2014. 

All couples who obtained a reverse mortgage prior to the time when both spouses could remain on title, and one signed off title in order to obtain a loan should seriously review their circumstances and consider what they would do if something were to happen to the older spouse.  By making plans, you can address the issue before the time comes when the grief of losing a loved one and the lender contacting you all combine to make it that much more difficult to make a level-headed decision.   Maybe the opportunity exits to refinance now.  Perhaps not.  But in any case, I think it helps to know what you will be looking at and what you need to plan for.

Hello Karen,

Unfortunately, Texas state has made overtures that they were going to take up the issue in their legislature that would allow the non-borrowing spouse loan but it just never happens.  There were rumors that it was going to be approved years ago and then we never heard another word.  Unless the law changes in Texas about heirship, underaged spouses and reverse mortgages, you do have to wait until you’re 62 as well.

Hello Rodger,

In most instances it is not possible, but we do see it happen once in a great while when it is very clear that both individuals live apart, own their own homes and there are not heirship issues like in the state of Texas.  You need to be able to clearly establish with records the separate domiciles of each individual and there are some rules that you must follow but it is possible when it can be substantiated that the two do in fact live apart.  Because this is the exception and not the rule, if the documentation exists that tends to indicate that the married couple lives together and that one of the homes is a second home, etc., the loan would not be granted.

Hello David,

There is no state in which you could do the reverse mortgage with no interaction from a spouse, even if she is not an eligible borrower or on title.  In some states such as Texas, a married borrower cannot even do a reverse mortgage loan without their spouse on the transaction under any circumstances.  Spouses have rights so HUD and lenders would need to be sure that they understood what the transaction entailed so that they could not later bring a lawsuit against the lender or HUD claiming their rights were violated without their knowledge.  For this reason, spouses of married borrowers also must attend the required counseling, even if they are not going to be on the loan. 

Many times, a letter of explanation is also required, hand-written by the spouse, to state why he/she does not want to be on the loan and that the person is specifically requesting the lender to grant that action, that the lender is not pushing that on the spouse.  Not all requests of this nature are granted.  Examples of reasons that might be considered are spouses such as yourself who purchased and own their own homes separately and do not wish to be on the other’s title.  There again though, they would still have to attend the counseling so that they were aware of the loan and the consequences of their actions.

Hi Marvin,

No, that is not the way it works, and the lender should have been very clear about it with you at the time.  Your wife would have had to sign multiple disclosures saying she was aware that she was not on the loan.  If you closed the loan in 2015 or later, she is probably an eligible non-borrowing spouse which allows her to stay in the home under the terms of that loan (even though she does not have access to the loan proceeds) if you pass before her but if you closed the loan prior to that time, the loan becomes due and payable when you are no longer living in the home.

I would strongly recommend that you review your loan documents and at the very least, add her to title now if you removed her at the time.  Next, if she is not an eligible non-borrowing spouse, check to see if you can both refinance in both names now so that she will be forever protected in the home if something should happen to you.  You can never just add another borrower to an existing loan so please do not just let this slide without looking into it and taking whatever steps work best for your circumstances. 

Hi Conni,

If the house is sold or the loan is paid off with a refinance, that loan would no longer be open, and your name would no longer be associated with this reverse mortgage.  If you leave and the loan is still open, the lender has only the property for security and you could never be made to repay the loan with other assets you have but you could also never get another reverse mortgage unless you go through a full divorce and the court releases you of all liability on the first property and gives that to your spouse.  Under that circumstance, HUD recognizes that you no longer have a legal right or obligation to that property.  But under no circumstances can a lender look to anything other than the property for payment of the liability even if you do not go through a divorce proceeding.

Hello Carrie,

The loan will become due and payable when the last borrower on the original loan no longer lives in the home.  The only way to ensure that a subsequent spouse can also remain in the home after the passing of the original borrower(s), would be to refinance the loan in both spouses’ names now. 

Otherwise, you can put the new spouse on title at this time and sign an authorization with the reverse mortgage company allowing them to transact with the company on behalf of the borrower making it easier for that spouse to do whatever is necessary to sell the home or refinance when the time comes but without a new loan in both spouses names, the new spouse would not be able to remain in the home under the terms of the original mortgage after none of the original borrowers were still living in the home.

Hello Kelley,

You can get the loan and he would be considered a non-eligible owner of the home.  He would still be required to do the counseling and would have to be involved in some of the process as a person on title, but he would not be on the loan and he would not be able to remain in the property after you passed.  The loan would become due and payable at that time and he would have to pay the loan off or sell the home.

Hello Elaine,

If the loan was originated prior to late 2014, the only way a married borrower with a spouse who was under 62 could get a reverse mortgage would be if the spouse was willing to Grant Deed off the title and agree to be a non-borrowing spouse in the transaction.  This would allow the older spouse to complete the loan in just his/her name while the younger spouse would not be a borrower on the loan.

You would have had to attend the counseling as well at which time the counselor should have also explained the ramifications of such a decision.  There were also documents that you would have had to sign at closing agreeing to the transaction.  This is the only legal way the loan would have closed.  As a side note, we recommended then that borrowers take a good long look at the need for the loan and their circumstances before they proceed with such an action. 

The loan becomes due and payable when the older spouse in this instance leaves the home and if the younger spouse is not able to refinance, foreclosure is eminent.  We often advised against this action unless a foreclosure was looming if borrowers didn’t take immediate action with the reverse mortgage and even then, our advice to borrowers was to seek other ways to pay off the loan as soon as possible, even if it meant selling the home and downsizing so that the younger spouse would not be found without a home. 

In some instances where the property had a very large amount of equity and the younger spouse had no intention of remaining in the home after the passing of the older spouse, we recommended that the younger spouse be brought back on title immediately after the loan closed (which HUD allowed) so that there would no problems with the sale of the home later.

I don’t know what counsel you received, but it does sound like you did follow the established requirements and did sign the closing documentation as you stated that your name does appear on the paperwork now.  Did you try to sell the house before the foreclosure was final or if it is not final yet, do you still have time to do so?  If so, I would certainly recommend you salvage any available equity if possible, with a sale.

Hi Judy,

I’m thinking you may be ok.  I am wondering when in 2015 you originated your loan?  HUD had already made the announcement in 2014 to change the program so that underaged spouses of eligible borrowers, while still being non-borrowing spouses, were changed to be considered an “eligible non-borrowing spouse” allowing them to remain in the property just like the borrower.  The announcement was made in April 2014 for all Case Numbers issued on August 4, 2014 and after which makes the non-borrowing spouse eligible for deferral if something should happen to the eligible borrowing spouse. 

Based on the date you give, I think if you check your documents you are eligible to remain in the home for life as well even though you may not have access to any funds on the line of credit if there are still loan funds remaining in the loan that have not yet been used.  Eligible non-borrowing spouses cannot access the loan if the borrower permanently leaves the home, but they also do not have to leave the home if they also meet the loan provisions (pay the taxes and insurance and reasonably maintain the home). 

The changes were known as early as April of 2014 so unless you were aware of the changes to be made and pushed to obtain your Case Number prior to the change in August and then just didn’t close the loan until sometime in 2015 which is possible, you would not have to move or pay the loan off if your spouse permanently left the home. 

If however you did push to beat that change in order to obtain the higher lending limit that the older spouse would get by not having to consider the younger borrower, then the loan will become due and payable as soon as the lender is aware that the borrower no longer resides in the home. 

At that time, you will have the choice of refinancing the loan, paying it off with other funds available to you or selling the property.  But, as I stated, that would take a push to specifically not be included in the loan at that time so I would strongly suggest you check your loan documents as you are probably covered as the eligible non-borrowing spouse under the then-new guidelines.

Hello Shelly,

Unless you live in a state where non-borrowing spouses are not allowed (i.e. Texas), you do not have to get divorced or come off title.  You can be an eligible non-borrowing spouse which means you are not on the loan, but if something happens to your spouse, you can still live in the property for life without having to make a mortgage payment.  You would not have access to the loan if anything happens to your spouse and there is still money left on the line of credit, but it is much better than being forced to sell the property!

Hi Genie,

A reverse mortgage does not pass to any individuals.  The only way to add a new spouse to an existing loan would be to refinance the loan in the name of both spouses under the current program parameters.  If you choose not to do so, the loan will come due and payable if something should happen to your spouse. 

He can add you to title and as an authorized individual to discuss the loan with the lender though that would make it easier for you to sell the home or refinance the loan at that time, but the existing reverse mortgage would still be due and payable.

Hello Joseph,

If you were not married at the time and she is not on the loan, she does not have the ability to remain in the home under the terms of the original reverse mortgage.  If you want to be sure that she is able to remain in the home even if you pass before she does, then you would have to add her to title and refinance the loan with a new reverse mortgage in both your names at this time under the current program parameters. 

Hello Laronda,

If there are more than one borrower on a loan and one borrower leaves the property, the remaining borrower(s) can still stay in the property under the terms of the loan.  In this case, the wife can stay in the property and the loan would not be called due and payable, but she does have to continue to pay the property taxes, keep the home insured and reasonably maintained. 

The same would be true for the other spouse if it was the wife who left, and it was the husband who remained.   In the case or more than two borrowers, individual borrowers can leave and if at least one original borrower still occupies the home and the conditions of the loan are met, there are no issues with the loan. 

Hello Linda,

As the eligible non-borrowing spouse, in most states you can also live in the home for life on the reverse mortgage if you meet all the loan conditions (live in the home, pay the taxes and insurance and maintain the home in a reasonable manner).  There are a couple of exceptions such as Texas where the laws still prohibit a loan to a borrower with a non-borrowing spouse, so you will need to verify that your state does not have any specific restrictions.

Hello Stacey,

HUD does allow for eligible non-borrowing spouses who are not yet 62 provided you are married, both of you are on title to the home that will be used for the reverse mortgage, both of you occupy the property at the time the loan closes and continuously after that time.  In other words, you cannot occupy the home, move out and then move back in after a spouse passes and hope to keep the reverse mortgage intact from that point forward. 

The home that does not have the reverse mortgage can be used for any purpose (rental, etc), but for both of you to be eligible for the loan to the older borrower while one of you is under the age of 62, you must both be occupying that home, you must both be on title and as previously stated, be married. 

If you were both 62 years of age or older and both on title to the home, there would be no marriage requirement as you would not be relying on the eligible non-borrowing spouse provisions.  You would both be eligible borrowers at that point. And if you were both eligible and both occupied your own property, you could obtain a reverse mortgage individually on either or both houses.

Hello James,

Married individuals can have their own reverse mortgage on different houses only if they both occupy their own home and do not live together in the same property.  It is not easy to document the separate living situation if driver’s licenses, bank statements etc. do not clearly demonstrate the different addresses for everyone.  It must be very clear that each individual life in their own home, but it can be done if that is the arrangement.

Hello Tab,

Since HUD changed the rules for non-borrowing spouses in 2017 when they released their “Final Rule”, the non-borrowing spouse no longer must be removed from title.  Your younger spouse was eligible to remain in the home even after you pass based on changes HUD made to the program in 2014 and when they first made that change, you had to take him/her off title and then could add them back to title right after the loan closed.  HUD issued the Final Rule which eliminated the need to remove them from title and then add them back. 

Hello Yolanda,

Married couples cannot obtain a reverse mortgage without the interaction of the spouse.  If you are married, your spouse does not also have to be on the loan, but if he/she is not going to be included in the loan, he/she must also attend the counseling and there are multiple documents that the non-borrowing spouse must sign indicating that he/she is aware of the program and its consequences on that individual’s rights in the property.  As long as you are married, even if separated, he will need your signatures also.  That would not be true once you were legally divorced (if that were to happen).

Hello Susan,

The title does not automatically revert to both names.  I would have recommended that you add your name back to title immediately after your reverse mortgage closed, even while the loan was active (the documents allow for it).  But especially now, I would advise that you do so without delay.  It is always easier to change the title now before anything happens to either of you than to wait until later. 

If you haven’t considered longer term estate plans, you may even want to take this opportunity to visit an estate attorney and discuss a will, possibly a trust for the home, advance directives and Powers of Attorneys back and forth with you and your husband.  As I stated earlier, it’s a lot easier to do all these things now while both of you can discuss your wishes and sign than to wait until it is needed later.

Good Morning,

I must answer this by telling you “probably”.  HUD allows you to have a non-borrowing spouse who is not on title and has no interest in the home, but you also need to be sure it is allowed in the state in which you live.  For example, we would not be able to do such a loan for a married couple in the state of Texas. 

Also, if you do choose to have a non-borrowing spouse, you need to know that under these circumstances the spouse would not be eligible to remain in the home if anything happened and the borrowing spouse no longer lived in the home as their primary residence.  And both spouses would have to attend the counseling and the non-borrowing spouse would still have some documentation requiring signature to attest their full knowledge of all their rights and that they are aware of the loan and its requirements.

Hi Susan,

As long as at least one original borrower remains on title and is living in the home as his/her primary residence, the loan still meets the loan provisions.  There would be no issues with what you are suggesting and you would not face a call from the lender of the loan.

Hello Richard,

If you mean under the terms of the reverse mortgage (without having to make a payment), the answer is no.  Her age is not the issue.  No borrower may be added later to an existing loan regardless of their age.  He can add a new spouse to title and ensure that she has the property, but the loan would come due when he is no longer living in the home and she would be required to pay the loan off at that time whether that be with funds available to her, by refinancing the loan, or selling the home and using the sale proceeds. 

If he wants to be sure that she is on a loan now so that she will not have to sell or finance later, he would have to refinance the loan with her included as an eligible non-borrowing spouse. With the difference in their ages though, the chances are very good that he would have to come in with a lot of money to close because her benefit will be substantially lower than his due to that 30+year age difference.

Hello James,

If she is not on the current loan and not an eligible non-borrowing spouse, as soon as the lender is able to determine that you are no longer living in the home as your primary residence, they will contact her to determine how she intends to pay the loan off. 

They will be looking for her to either show plans to refinance the loan or pay the loan off with other funds available to her if she plans to stay or for sale of the home.  If she is not willing to show this intent, they would eventually start a foreclosure action and I honestly cannot tell you exactly how long this would be as their primary goal would be to assist with having the loan repaid either through refinance or sale of the home.

Hi Sandra,

If you obtained a reverse mortgage more than 5 years ago, before you remarried, it was closed before HUD established the eligible non-borrowing spouse.  He would not be eligible to remain in the property after you no longer live in the home under that loan.

If that is your goal, you would have to refinance the loan at this time and the new loan would take his age into consideration as well so it would give you less money (unless of course your value has increased substantially) but he would also be able to stay in the home for life under the terms of that loan.

Hello Frank,

The loan doesn't determine anything. As long as at least one borrower still lives in the home, the terms of the loan are met and the loan is active. If the borrowers wish to change that they can, but as with any other loan, to force a division of property, it would take some sort of Court order or an agreement on their part.  If both borrowers leave the home, the loan becomes die and payable. 

Good afternoon,

Yes, if you also put this individual on title as with you as well and he/she met all the loan qualifications (minimum age of 62 being the major issue here). If you wish to remain the only one on title, then you could not include anyone else on the loan who is not also on title.

Hello Joan,

The reverse mortgage will affect the rights of both you and your spouse regarding the ability to remain in the home after you pass if your spouse is not on the loan.  For this reason, HUD requires anyone associated with the ownership of the property or married spouses to also attend counseling so that they understand the full effect of the mortgage on their future rights. 

In the past, HUD had different rules for non-borrowing spouses and that ended in lawsuits against lenders and HUD when those individuals later claimed they were not informed or did not understand the ramifications of their actions.  HUD is much stricter on when they will allow a spouse to be excluded from a transaction now and, as you are finding, they do require the spouses of married individuals to also attend counseling to make sure they understand their rights and obligations under the program as well.

Hello Stephen,

If you are applying as a married couple, we do not ask for any documentation that the individual you claim is your spouse is a “married spouse” or a “registered domestic partner”.  If you have title to the property that specifically disputes your application, then there could be additional documentation required but typically, even if you took title as single individuals and are now taking title as married individuals, that would be accepted. 

If, however, your title shows that you currently hold title in a manner that differs from a past status or multiple status changes without stating that a divorce has taken place, then clarification could be required.  So, I guess it may depend on whether you consider your domestic partner your spouse.  If you apply stating that you are single individuals, we would treat it accordingly.  If you apply as married, we would not require any further documentation. 

The only time this would even be an issue is if one of the two of you is not old enough for the loan as only eligible non-borrowing spouses may remain in the property after their spouse leaves the home without the loan being called due and payable.  If you are both over the age of 62, there is no change in the benefits or requirements for both borrowers whether married or not.

Hello Don,

I am sorry to hear of your circumstances.  The loan is valid if one of the initial borrowers is still living in the home as their primary residence so to answer your question, yes, if she was also on the original loan, she can continue to live in the home for life under the terms of the loan. 

About the help of the expenses, the mortgage does not specify who must pay what, especially if there is subsequently a separation.  The loan stipulates that the taxes and insurance must be paid in a timely manner though.  If your spouse can maintain those expenditures, then she would follow the loan and there would be no default. 

Finally, if you do file for divorce, that would not affect the loan status.  Again, if at least one original borrower lives in the home and pays the taxes, insurance and maintains the property, the divorce would not have any effect on the loan.  You can even change title and add or remove a borrower from title if at least one of the original borrowers on the loan remains on title. 

Hi Richard,

By adding your spouse to the title of the home, you have protected her rights to the property ownership after you pass.  If by protecting her now you are referring to allowing her to also live in the home for life without making a payment on the loan, that can only be done by refinancing the existing loan with a new loan in both your names at this time. 

HUD issues mortgage insurance on every reverse mortgage and therefore assumes a risk on every loan based on several known parameters.  Values, interest rates and borrower’s ages are the major factors considered.  If borrowers could bring in new factors after the loans were already closed (i.e. new spouses), all assumptions and actuarial tables used to determine loan eligibility and loan amounts would be useless. 

For example, the actuarial tables used assume borrowers will live for “XXX” number of years.  If borrowers can be brought in after the loan is closed, that assumption would be invalid.  We have received may questions over the years about borrowers who re-married individuals many years their junior.  Not only would any borrower added later throw off tables used to determine risks, but a significantly younger borrower would do so to a much greater extent almost surely causing large losses to the MIP fund as loans remained outstanding and accrued much more interest than ever intended. 

For this reason, once a loan is closed, no borrowers may be added to the original loan.  If you cannot refinance and add her to your new loan at the home you are in for equity reasons, you can also consider moving to a new home and using a reverse mortgage in both your names to purchase a new, less expensive property. 

More on the reverse mortgage for home purchase found here: https://reverse.mortgage/purchase-down-payment

Hello Clifford,

Two individuals who are not married may both be on the loan if they both qualify for the loan and are on title.  In other words, if your significant other is also 62 or older and is on title, there is no requirement that you are married for that individual to also be on the loan and to be covered by the loan (can live there for life even if one passes). 

However, if your significant other is not yet 62 years of age, that person would not qualify as an eligible non-borrowing spouse if you are not married and if anything happened to you, that person would not be able to stay in the property under the terms of the original loan. 

The loan would become due and payable and your significant other would be left looking for financing or would have to sell the home at that time if no financing was available to repay the loan when it became due.

Hello Jack,

I can answer the first question for you regarding the reverse mortgage.  If she was also a borrower on the loan and meets the property charges obligations, then yes, the loan stays in tact even if you have left and she can remain in the home. 

The second question is one that you should seek legal advice for an answer as it could depend on several things. If you never signed anything to grant your title in the property to her then you still have ownership interest in the home, but I could not possibly tell you what a court might do based on the laws of the land if she tried to claim that you abandoned your interests and rights to the property. 

I think you should contact an attorney because there may be something you need to do in the meantime if you wish to protect any interest you have in the property and there may not be.  An attorney practicing in the area would be the right one to ask about that though as it has nothing to do with the mortgage.

Hi John,

Let me make sure I understand this correctly.  I read this as though you have not yet closed your reverse mortgage loan.  If that is correct, there is no reason that you do not add her to title before or at closing instead of waiting for after the loan closes.  And, there are many reasons you should add her now if you want to be sure she has the house anyway. 

You see, as your spouse, her age will be considered in the benefit amount of the reverse mortgage anyway so even if she is not yet over the age of 62, she can still be an eligible non-borrowing spouse.  By putting her on title now and closing with her on the loan as either a co-borrower if she is 62 or over or as an eligible non-borrowing spouse if she is under 62, then she is protected and can remain in the home for life under the terms of the loan if anything were to happen to you.

If she is not a borrower on the loan and you take the steps to keep her off the loan and title, she can be added to title later, but the loan would still be due and payable if anything happens to you.  Unless she absolutely intends to sell the home immediately if you pass or must permanently leave the home, it really doesn’t make sense for you to leave her off the title to close the reverse mortgage.

Hello Rodney, 

Not a thing as long as at least one of the two remains living in the home as their primary residence.  The spouse that leaves has to realize that he/she is not eligible for another reverse mortgage until the first is paid off (either through the sale of the home or refinance by the other spouse with a new loan that does not contain the spouse who has left).  Otherwise the loan can remain in full force as long as at least one spouse remains in the home and the conditions of the loan are met.

I've written up an article on Reverse Mortgages & Divorce you can access here. Hope this helps! 

Hi George,

Yes, you can add your wife to the title of your home at any time and as long as you remain on title and live in the home, there is no ill-effect on your reverse mortgage.  However, you must remember that by adding her on title, you are making it easier for her to take whatever actions she would need to take if anything happens to you if you intend for her to become the property owner at that time, but it would not stop the loan from becoming due and payable.

It is true that depending on how the title is vested she may be the owner of the property at that point, but she would still need to determine how she would pay off the reverse mortgage that would be due and payable or she would have to sell the home.  Simply adding her to title would not alleviate this need. If you wanted to make sure that she can still live in the home for life without having to make  a payment and without fear that the loan would be called due and payable, you would have to refinance the existing loan at that time with her being on title as your eligible non-borrowing spouse. 

This would not give her access to any reverse mortgage proceeds if something happened to you and there were still funds left on the line of credit as a non-borrowing spouse, but it would allow her to remain in the property for life without having to make a mortgage payment.  She would have the same responsibilities that you now have under the terms of the mortgage – she would have to make the payments of taxes and insurance in a timely manner, maintain the home and pay any special assessments (HOA dues, etc if any).

If you just wanted to be sure she had title to the home, you can just add her to title with you at this time.  If however you are also trying to be sure that she can live in the home for life with no mortgage payments, you need to look into the refinance with her included.

Hello Rodney,

An individual who is 62 or older with a spouse who is not yet 62 can get a reverse mortgage, but you need to understand the rules and ramifications.  Firstly, the spouse who is not yet 62 can remain on title, but she will not be on the loan.  She can also stay in the home for the rest of her life without having to make a mortgage payment so long as she meets the same stipulations that you have to meet even if you should predecease her. 

She must keep the taxes and insurance current and paid on time, she must maintain the property in a reasonable manner and must live in the home as her primary residence.  The biggest thing that you have to understand is that as an individual who is not on the loan, if anything were to happen to you, even though she can live in the home for life without having to make a mortgage payment, she does not have access to the loan.

Where might this affect her?  If you use all the funds from the loan at the very beginning just to pay off an existing loan or use all your loan proceeds while you are still alive and living in the house, this would not affect her at all.  In this instance, there would not be any funds remaining for either of you to access later.  However, if you had a line of credit and had not used all of your loan proceeds when you passed or left the home for other reasons, your spouse would not have access to the remaining funds in the line of credit.  Just something to keep in mind as you make your plans.

Hi Sheila,

Take a look at the reverse mortgage documents.   Owners of the property who were also owners at the time the loan closed but are not eligible to be on the loan can fall into two different categories, an eligible non-borrowing spouse and an ineligible non-borrowing spouse or a non-borrowing owner if the parties are not married.

If the second person on title was an eligible non-borrowing spouse, then that personal also has the ability to stay in the home for life as long as he/she meets the reverse mortgage requirements.  That individual will not have access to the loan, but as long as he/she lives in the home, pays the taxes, insurance and any special assessments (i.e. HOA dues) on time, they can live in the home for the rest of their life without having to make any mortgage payments and the loan will not become due and payable until he/she leaves the home.

However, if that individual was an ineligible non-borrowing spouse or co-owner of the property, then the loan would come due and payable once the eligible owner was no longer living in the home.  The loan documents will spell out the status of the co-owner right in the documents if the loan was closed after 2014 and if it was closed prior to that time, HUD did not have the eligible non-borrower classification so it will not show on the loan documents (but then again, prior to then HUD and lenders required non-eligible parties to come off of title to complete the loan so I do believe your loan was closed after the HUD changes).

Hi Rita,

I am afraid I can’t help you a lot here, this is a legal question and not pertaining to the mortgage itself.  I would direct you to a licensed attorney in the county in which the property is located to determine what you most likely can and cannot do in court.

Hello,

The property would go to whoever you set it up to go to as long as you have a trust or will that makes those wishes known.  Otherwise, it would go into probate and the courts would decide who gets the property after you pass.  The heirs would have the option to pay off the loan and keep the property or sell the house and keep the equity.

If there is no equity, they can walk away and owe nothing or they can pay off the loan for 95% of the current value at that time.  It is always easier and faster to resolve who will be the future owner while you are still alive and can direct your wishes.  I would suggest that you seek an estate attorney and set up a simple will even if you don’t want to go the whole trust route while you can if you have a preference about what should happen.

Hello Jeanlynn,

I am afraid this would not work.  A married couple can only have one principal residence for the purposes of the reverse mortgage.  Once you took out the loan on one of the properties, if you were still married, both names would be on the loan (even if one was a non-borrowing spouse) and then neither of you would be eligible for another reverse mortgage for as long as that loan was still outstanding.  The only way you would be able to avoid this restriction would be if you were to finalize your divorce and each of you took out a separate loan on your own property.

Hello Don,

The probate and the lender’s right to foreclose on the Deed are two different issues.  One is to perfect her title to the property and the other is the lender’s ability to protect its interest in the home after the Note has been called due and payable.  Neither is dependent on the other nor does one have to wait for the other.  However, if the heir is in the process of selling the home or working to refinance the loan (which you have already stated that paying off the loan via refinancing is not an option in this case), your lender in Florida will usually work with the heirs to allow them to list and sell the property.

I say “usually” because if there is no equity in the home or if the heir is making no effort to market the home, the lender will be less apt to extend the timeframes for the payoff of the loan and will proceed with the necessary steps to call the loan up to and including foreclosure.  Having said that, she can stay in the home until such time as the lender takes title to the property and that would be at the conclusion of the foreclosure process which also takes multiple months (sometimes up to a year or longer).

I do not know what the probate process is in her area but I have to assume that there is equity in the property or she would not even bother with the probate efforts.  She can most likely list the home while she is in the process of probate (check with your local real estate professionals) and can notify the lender that she has begun both the probate and the sale efforts and that should give her the time she needs to complete the sale.

Hello Jamie,

Your marital status would not stop you from getting a reverse mortgage in California as long as your spouse is willing to sign the necessary documents as a non-eligible, non-borrowing spouse.  It’s a matter of his rights as a spouse until you two are fully divorced but if he is willing to sign all the paperwork before that time, you can get the loan now.  He would still be required to attend the counseling session so that he fully understands the ramifications of the transaction and his actions and there are some documents he has to sign, but otherwise, you can proceed if he is willing.  If he decides he is not willing to proceed at this time, you would have to wait for the divorce to be final and then you would not need his participation at all on a property on which he is not included in the title.

Hello Donna,

If you are also included on the reverse mortgage as a borrower, it doesn’t make any difference if you were a spouse or not.  You are still able to stay in the home for life under the terms of the loan.  If you were not on the loan at the time he applied for and received the loan, you may still have rights to the property, but the loan will still be called due and payable.  My advice would be to contact an attorney if you are not on the loan and if you are not on the title to the property as your question is really a legal one concerning common law marriage and I cannot advise you regarding your property rights as an unmarried individual.  You should find that out as it will also make a difference as to what you will do with the property when the lender calls the Note due and payable as you will want to be able to sell the property or refinance the loan and you will need clear title to do either.

Hello Jim,

You have to decide whether you are trying to something that will keep the reverse mortgage in place or if your goal is to determine how to keep you or your spouse in the home when the other vacates the home.   You can always sell the house at any time with no prepayment penalty.  So one option is always to sell the property and split the asset that way.

You can always refinance the loan with another lender in either of your names with that individual on title.   Both of you are on title so either of you could Deed you interest to the other and that individual can buy out the other spouse by taking out a new loan (probably a forward or conventional loan) to pay off the reverse mortgage.  The title would then be solely in the name of the remaining occupant spouse and there would be no issues.  And as is the case with the sale of the home, there is no prepayment penalty for the payoff of the reverse mortgage. 

If you would like to keep the reverse mortgage in place, since you are the borrower on the current reverse mortgage, you must be living in the property as your primary residence.  If you leave the property and it no longer becomes your primary residence, the lender would call the loan due and payable once it learned you had vacated the home.  As long as you remain living in the home as your primary residence (and meet the other conditions regarding payment of taxes, insurance and maintaining the home), then the loan is fine whether you remain married or not.  If however you wish to leave the home, you need to make provisions to pay off the loan with funds available to you, sell or refinance with a new loan since your spouse is not on the current reverse mortgage loan.

Also See: https://reverse.mortgage/divorce

Hello Javier,

The insurance policy that you reference is known as an HO-6 policy and is sometimes also called a “walls in” policy.  It is required for all units located in a project whose association’s master policy does not contain this coverage.  If, as you say, your mom never had this protection in the past, it is possible that the HOA has the coverage.  The lender should not close the loan unless this coverage exists so one of two things most likely happened; your mom did have the coverage and her spouse arrange for it and she didn’t even realize it or; the HOA has or had this coverage in the master policy (some do and some don’t).  I think if I were you I would contact the HOA and find out if they have the coverage and if they do, supply the proof to the lender that the coverage does exist and therefore no insurance default occurred. 

However, that does not mean that your troubles are over.  When you say that “all other qualifications were met”, you have not indicated several of the most important items.  Firstly, I can only read between the lines here so I am doing some guessing but I assume that she was not on the loan at the time the reverse mortgage was obtained and maybe not even on title?  I can’t tell for sure, but from the tone of the questions, it sounds like she was married later and may not have been married at the time the loan was obtained by her spouse.  Is that correct?  Because there are several different categories of spouses that will determine their eligibility to remain in the home.

You further state that she was legally married but was she legally married at the time her spouse obtained the loan?  If she was not his spouse at the time of the loan origination, she has no survivor benefits for the loan.  If this is true and he made her the legal heir and she now owns the property, she can refinance the loan, she can sell the property and pay the loan off, and if she cannot refinance the loan, she can sell the property and buy another using the equity and a new reverse mortgage to purchase a new home.  If her credit and income will not qualify her for even another reverse mortgage then the equity would still be hers as the current owner on sale but the current loan may not be “assumed” as reverse mortgages as not assumable. 

If she was his spouse at the time the loan was closed, there are still two categories of spouses, eligible and ineligible non-borrowing spouses as of the new rules HUD instituted in 2014 that became effective in 2015.  When was the loan closed?  If the loan was closed prior to the new rules, then your mom would not have even been an eligible non-borrowing spouse at the time the loan was originated and therefore would not be able to remain in the home under the terms of the old reverse mortgage, insurance or no.  If she was married and the loan was closed after the HUD changes in 2015 and the walls in policy is in place with the HOA, then no default existed and she has the right to remain in the home under the terms of the mortgage.

So you really have two different issues you need to resolve.  You need to determine if the HOA has the walls in policy (HO-6 policy) and whether or not mom has the right to remain in the home under the terms of the loan as the original borrower’s spouse.  If the coverage does exist and she is an eligible non-borrowing spouse, you need to send that information to the servicer.  If not, then you need to realize they will not be swayed by offers to pay for an insurance policy that may or may not be the only issue anyway and make any plans possible for one of the other alternatives I mentioned above.

He would not be able to get the loan without your consent and participation if you are on title whether you were ever married or not. If you agree to sign a Deed removing yourself from title, he would not need your consent or participation for the loan.

Hi Richard,

There are no other states in which we are or have been licensed that have the same restrictions, but that does not cover all 50 states.  If there is a specific state in which you are interested, you can check our website to see if it is one of the states in which we are licensed or if not, you would have to check with a licensed lender in that state.  I would not want to give you bad information.

As for Texas state, there has been talk for years that this law was being discussed for revision.  We had heard that especially after HUD changed the guidelines to make an underaged spouse eligible to stay in the home even after the borrowing spouse passed that the State of Texas was now going to consider allowing this provision but have gotten no further word.  I would suggest that you contact your state legislators and request them to consider changing the laws if you are serious about wanting to see the availability of the program in Texas.

Hello Amy,

Texas has changed their laws over the years but it is true that they do not allow non-borrowing spouses at this time.  Whether or not they did when you mom and dad did their loan, you really should have an attorney review.  Also, if there is equity in the home. Mom should look into other alternatives other than just leaving with nothing or a small payment.  It may be much better for her in the instance of a sale.  I would wholeheartedly recommend that mom contact an attorney immediately to determine her rights and options at this time.

Hello Barb,

It would be no problem at all.  It makes no difference how you acquired title, or what type of loan is on the property now or whether or not he is currently on that loan.  If you are both on title to the property when you close the reverse mortgage and both eligible for the loan, you can both be on the loan at this time.

Hi William,

After HUD published their final rules, you no longer have to remove non-borrowing spouses from title.  She can stay on the title and will be considered an “eligible non-borrowing spouse” which will allow her to stay in the home for life as well.  The downside is that if anything happens to you, she does not have access to any funds still on the line, even though she can stay in the home for life without making a mortgage payment.  As with all other reverse mortgage loans, she still has to pay the taxes and insurance on the home in a timely manner.

There are a couple of caveats to this.  Firstly, if you live in a state like Texas, they still won’t allow a non-borrowing spouse.  So you can’t do the loan at all if you are married with an underaged spouse  at this time in Texas.  Secondly, you can no longer remove a younger spouse to gain higher loan amounts.  This is a bit of a mixed blessing.  It keeps borrowers from taking a younger spouse off title just to get more money only to later find that the spouse has to scramble to sell the home because the loan is called due and payable when the other spouse passes.  It also means though that if borrowers are short to close, they cannot make up the difference by taking the younger spouse off of title.

In all honesty, we never recommended doing this anyway.  It was a bad idea for most borrowers and only those with a second home that the younger spouse intended to move to at the time of the passing of the older spouse anyway or some such strategy really found this action reasonable.  Otherwise, the younger spouse found themselves in a very tough spot later on when the loan was due and payable and they had no way to pay it off.  There is never a good time to find yourself in that position but when you are grieving for a lost spouse and then you find that you need to find a new home as well, it just doesn’t make sense and we are very happy HUD made these changes.

Hi Jamie,

If you are still on title to the home, another person on title typically cannot do any loan without some involvement by you or it would create an issue for the lender later on if you did not agree to the financing.  If you still have ownership in the property and the lender is forced to accelerate the debt for any reason, they would be unable to enforce their documents unless you had also agreed to the terms of the loan.  Therefore, you would need to also take some part in the reverse mortgage even though you would not be a borrower on the loan. 

You would have to take part in the counseling so that you would understand the terms of the loan and the ramifications to you as an owner of allowing the loan to be placed on the property.  You would have to sign some of the documents (even if not a full package) acknowledging the loan and granting your approval.  Only then could one owner, your ex-husband, get a reverse mortgage on the property that could affect your ownership in the property as well.

Good Morning,

There are a few things you can do to protect yourself.  Firstly, if you have not already done so, you and your husband can record another Deed at this time from him to both of you.  You should both be on the title to the home so that if anything happens, you don’t have to start trying to change the title after he has passed and it is more difficult.  The loan documents allow him to add anyone to title as long as he remains on title so I would say do that immediately since it is such as easy step and extremely inexpensive.

The next step is not such a quick and easy one.  The loan you have now will be called due and payable when your husband no longer lives in the home as his primary residence since he is the only borrower on the loan, even if you do change the title.  Prior to 2014 when they changed the rules for non-borrowing spouses, we really advised borrowers to think hard before they did a non-borrowing spouse loan and explained that unless you had other options or plans for this eventuality, it was a terrible time to discover that your loan was due and payable later and you had no options.  Unfortunately, that doesn’t help you in your current state so there are actually a couple of things you can do now to protect yourself. 

Firstly, you can refinance the reverse mortgage loan you have with a new loan in both your names.  This is not always as easy as it sounds though because you are coming on as a younger borrower and HUD has lowered the amount of money borrowers receive under the program since then.  Your property may have increased enough in value since then to allow for the refinance though and if so, the new loan would be in both your names and would allow you to stay in the home as well.

The second option may or may not be one you would consider but I will throw it out anyway.  If you have ever thought of downsizing or moving to be closer to family, friends, medical services, for needed amenities that your current home does not have (single-story vs two-story) etc., this might work well for you.  You do have the option to sell your current home and purchase a new home using the reverse mortgage as well.  When you purchase the new home, you would do so with both you on title and on the loan so you would not have the same concerns so you may very well be able to “fill two needs with one deed” as the saying goes. 

Regardless of what you decide, it would not be a bad idea to add you to title as soon as possible.  I suggest you have someone help you with it (perhaps the title company who removed you in the first place) so that you don’t accidentally create a taxable event.  They will be certain that the Deed that is recorded verifies that the event is a familial transfer and that the property is not subject to reassessment as a result.

Hello Susan,

Because the loan does affect the rights of spouses as well, there is a small amount of cooperation he would have to grant acknowledging the loan, etc.  If he was totally unwilling to take part in the HUD-required participation, he could prevent you from getting the loan.  He would not be required to obligate himself for the loan if he agreed to take part as the non-borrowing spouse but non-borrowing spouses do have rights under the loan depending on whether they are deemed eligible or non-eligible and the loan affects their ability to get another reverse mortgage should they later become single and wish to get the loan on a different piece of property.

Even non-eligible non-borrowing spouses must sign some paperwork at closing acknowledging the loan so that they cannot come back later and sue HUD claiming that they did not know of the loan’s existence, that they were unaware of the consequences or that their rights were somehow violated at the time the loan was closed.  I’m sorry, but this is required because HUD really did face these sorts of lawsuits in the past when one spouse was excluded from the loan, even when it was at their request when HUD previously allowed one spouse to be excluded from the process.  They have not allowed this to occur since 2014 as a means to eliminate future legal liability when the second spouse is not to be included on the loan.

Hello Patricia,

If you and your husband apply as husband and wife and your current title is vested in this manner, there would be no further request for documentation at all.  The only time a lender typically has to ask for additional information is when there is a conflict in the information they receive such as your current vesting on title is as a single man and a single woman and you each have different names, etc.  You can designate anyone your heir after you pass so that would not even be a consideration.

Hi Betty,

As long as you don’t live in a state like Texas that does not allow a non-borrowing spouse, then yes, you can add your spouse to title and obtain a reverse mortgage.  At 54 years of age, you do not qualify for the loan but you would be considered an “eligible non-borrowing spouse”.  This means that you would not be on the loan as a borrower and if anything happened to your husband, you would not have access to any money left undrawn on the line of credit, but you could continue to stay in the home for life without having to make a mortgage payment.  You would have the same responsibilities and requirements in that you would have to pay the taxes and insurance on time, maintain the home in a reasonable manner and continue to live in the home as your primary residence.  But since you are not a borrower on the loan if he passed while there was still, for example, $25,000 still available on the line of credit that money would not be available to you. 

The equity in the property is always yours so you don’t lose that by structuring the loan this way but it would mean that it may affect your ability to live in the home in the future and so you want to consider the option carefully.  If you do live in a state like Texas, they do not allow for the non-borrowing spouse and therefore the reverse mortgage would not be an option for you until you were both 62 or over or the state changed its laws.

Hello James,

The reverse mortgage does not grant protections to individuals who are not on the loan at the time of its inception.  The loan parameters are based on known factors at the time the loan is granted and there would be no way to determine unknown factors such as additional borrowers added at a later date.  For example, one of the main factors of the loan proceeds allowed to the borrower(s) is the age of the youngest borrower due to the anticipated life expectancy of the borrower(s) as a percentage of the value of the home.

The older the borrowers, the more the borrowers will receive as a percentage of the value because a 62 year old borrower can statistically be expected to be able to live in their home for life longer than an 82 year old borrower.  If the mortgage allowed additional borrowers to be brought on after the loan was closed, younger borrowers could be added which could severely impact all modeling and HUD’s MIP reserves.

You can apply for a refinance with your spouse though if she is willing to grant deed you on to title and refinance the loan with you at this time if you will qualify under current loan parameters.  By taking a new reverse mortgage in both your names at this time, you both would be on the new loan and there would be no concerns about one spouse predeceasing the other with regard to the reverse mortgage.  That could obviously affect the heirs (if any), it’s a decision the two of you would have to discuss and you would have to qualify under the current loan parameters but it is an option for you.

Hi Cindy,

I am afraid this is a question for a licensed attorney practicing in the area where your home is located.  Neither the lender nor HUD will become involved in your property split and so that would be a matter for you and your husband to agree to and then have spelled out in the divorce documents or for the courts to determine if the two of you cannot agree. 

And even then, only an attorney can let you know the best way to ensure that the funds are split in the manner prescribed so that your interests were protected.

Hello Tatiana,

Once you have signed for a loan, you are a borrower on the loan until the loan is paid off, even if you and the other co-borrower split up.  The only way to remove yourself from the loan entirely would be to pay the loan off and close it out.  You could achieve this by selling the home or he could refinance the loan in his name alone and pay the loan off with a new loan.  However, borrowers cannot just request that they be released from a reverse mortgage, or a forward loan either for that matter, once the loan has closed if the loan is still outstanding.

Hi Mark,

Your spouse can get a reverse mortgage on the house but since you are not living in the home, you would not be an eligible coborrower, you would be a non-eligible non-borrowing spouse and if anything happens to your wife, the loan would become due and payable.  Since you are still married, you would have to be a part of the loan process and attend the counseling and sign several of the loan documents acknowledging the transaction.

You would also not be eligible for another reverse mortgage on another property if you later complete the divorce and want to purchase or otherwise obtain a new reverse mortgage on your own as long as this loan is still outstanding.  But the answer is yes, your spouse can get the loan while the two of you are still married even though you are not living in the property.

Also See: https://reverse.mortgage/eligible-vs-ineligible-spouse

Hello Hamid,

I am aware of an eligible non-borrowing spouse who took longer than 90 days to provide this documentation due to a court issue but she was able to show that she was well on her way to procuring title within the 90-day period and communicated this to the lender and HUD.  I think you need to let them know exactly what the hold up is and show them why it’s taking longer than 90 days so they can see that it is for a reason beyond your control and that it will be resolved shortly.

This is also why I recommend to borrowers that you check your legal documents and make the change in the title before something happens to the borrowing spouse.  I believe that in almost every state there is no restriction on adding a non-borrowing spouse back to title right after closing and if your documents allow for such a change, I would suggest that you add the non-borrowing spouse back to title as soon as possible so that this is not an issue later.

Hi Pete,

The answer is that if your wife is willing to sign off of all the paperwork to allow you to go on the title alone, attend the counseling and allow you to be the only borrower on the loan, yes you can.  If you are asking if you can do the loan without your wife’s knowledge and consent, the answer is no.

Hello Sharon,

I would be interested to see what the letter states because there are a number of things that you state here that simply are not true.  The law has not changed since he and his wife obtained their reverse mortgage in a manner than prevents him from staying in the home.  In 2012, non-borrowing spouses had no option to stay in the home under the terms of the current reverse mortgage and their loan documents and all the counseling they attended said as much.  It was not until later that HUD changed the rules to allow eligible non-borrowing spouses who met certain criteria to allow the reverse mortgage to remain outstanding under the terms of the original mortgage as long as the non-borrowing spouse continued to meet all the reverse mortgage requirements as well (pay the taxes and insurance on time, maintain the home in a reasonable manner and continue to occupy the home as their primary residence). 

When HUD made the changes to the program in April of 2014 (Mortgagee Letter 2014-07), they began to also take the age of the coborrower into consideration when determining the borrowers’ benefits.  Prior to this time, the underaged spouse’s age was not considered when determining the benefits of the reverse mortgage.  Not only did this affect underaged spouses, but prior to this change, many times married couples would leave a younger spouse off the loan even if they were over 62 just to get the higher benefit.  This also caused problems later when the younger spouse did not have the wherewithal to refinance or pay off the loan and also had to sell the property when the older spouse passed.  HUD changed the program parameters in 2014 where married couples can no longer choose to leave one spouse off the loan just to get a larger benefit and eligible non-borrowing spouses can remain in the home but as stated, the amounts they receive now reflect the younger spouses age.

However, getting back to your friend’s situation, there was no law that changed from loans originated in 2012 to now that would affect his ability to remain in the home and that is why I would really have to see what his letter is saying to comment further.  He can look into a reverse mortgage of his own now if both he and the property qualify under current HUD guidelines, he can sell the home or he can replace the loan with other financing.  There is nothing that says he cannot stay in the house.  If he and his wife never put him back on title he may need to do so now through a court procedure (and the home may need to go through probate anyway) but he should look into perfecting the title right away, no matter what he chooses to do.  If he is not on title, he will need to be in order to obtain new financing (reverse or otherwise) or to sell the home.

But the lender cannot dictate that he walk away from the home as you put it, that is not their call.  The house still belongs him or the borrower and the borrower’s heirs if they never put him back on title.  The lender does not own the property and therefore does not determine what he can and cannot do with it.  The lender can also only do what the borrower gave them the right to do when the loan closed.  If your friend is concerned that the lender is trying to change the rules now, all he needs to do is read his original documents and they spell out the agreement between the borrower and the lender.  The lender cannot change the rules later.  If your friend feels that they are trying to do so, I would recommend that he contact an attorney or free legal aid service in your area for assistance and sooner rather than later.

Good Morning Elypn, 

You cannot add a new spouse to the existing mortgage.  If you would like to be able to have someone else remain in the home under the terms of an active reverse mortgage, you would have to close a new loan in both your names and they would have to be living in the home and be eligible for the loan at the time the loan was closed.

This could be another family member, a friend, a child of yours or really anyone you wish.  You just need to remember that the only person who could be less than 62 and still be allowed to remain in the home would be a qualifying non-borrowing spouse and she would have to also be on title to the home.  All others would also have to be on title as well as living in the home and be a minimum of 62 years of age.

The amount you would be eligible for on the new loan calculations would be based on HUD’s guidelines at the time you apply and the ages of you and the other party so if your new spouse or second individual is younger, you would qualify for less under the program and that may make a difference depending on the balance of the old loan you have to pay off.

If the loan was done with you as an eligible non-borrowing spouse, then you can remain in the home under the current loan.  If not, you can still stay, but the loan would be due and payable so you would need to refinance the loan with a new loan in your name.

Hi Wendy,

She would not be able to add him to the current mortgage.  If she wants to add him to title and refinance the loan in both their names so he can stay in the home, she can do that.  If she adds him to title, that could also complicate what your plans were for heirs, but that is her call while she still owns the home. I strongly suggest you and your mom speak with an attorney who handles estate matters now so that mom's wishes can be clearly stated and the documents can be filed to implement them when the time comes.  The attorney will know the best way to accomplish this, I can't give you legal advice.

Hello Mamie,

As long as you still live in your home as your primary residence and spend at least 6 months and 1 day or more out of every year in the home, you are meeting the terms of the loan and there are no problems.  You are allowed to be out of the home from time to time and not only is it ok that you don’t “add him to your loan”, you could not even if you wanted to.  The only thing that would cause you a problem would be if you no longer occupied the home as your primary residence.  You are not required to notify the lender of anything at this point.  As long as you continue to pay the taxes and insurance when they become due, maintain the property in a reasonable manner in addition to meeting the minimum residency requirements, you will be just fine.

Good Afternoon,

We receive questions like this one quite often and I feel now might be a good time to remind all borrowers and prospective borrowers how reverse mortgages work.  More and more borrowers are contacting us to see if newly acquired spouses can be added to their loans or if previously under-aged spouses can now be added and they cannot.  Borrowers need to know this from the start so they can plan accordingly if they think their situation warrants it.

Reverse mortgage benefits are determined based on a number of things; the value of your home, the interest rates in effect at the time; the age of the youngest borrower or spouse and the purchase price if the transaction is a purchase.  When combined, all of these factors are analyzed to determine the risk HUD is willing to accept to by stating the maximum loan amount or Principal Limit they are willing to insure on any given loan.

The reverse mortgage calculator that HUD devised takes into consideration these variables because HUD knows that rates will change over time, the values may increase or decrease, but that people will keep growing older.  And as they grow older, based on actuarial tables, they will only stay in the homes for a certain period of time.  It’s true, some live longer and some move quicker but based on the same type of table insurance companies use to determine life expectancies, the HUD calculator will determine the borrowers’ benefits based partly on the ages of the borrowers.

If borrowers are permitted to bring in other borrowers after the loan is already closed and also allow them to stay in the home for life, the entire premise upon which repayment expectations are made would be upset.  In other words, if you base the benefits on a borrower who is 75 years old and that borrower remarries later to someone who is 50, that loan would not then be expected to repay for another 25 years longer than the original model and for which the benefits were determined.  If the same loan were just left outstanding, the losses to the MIP fund would be catastrophic bringing into question the viability of the program.  No one can build a calculator to quantify the risks for all the unknowns if multiple changes can be made the loan after it closes.

This is why if you remarry and you want to add a new spouse, you have to refinance the entire loan based on the ages of the borrowers at the time the new loan is originated if you want that spouse to also be protected.  And this gets me back to the point I was making earlier about planning accordingly if the situation warrants it.  If you know you have a spouse that was not included on the original reverse mortgage loan, you need to plan for either a refinance adding that spouse or some way for the spouse to be able to pay off or down the loan to be able to remain in the home.

How do you do that?  You could start by not maxing out the line of credit so that when it comes time to refinance, the loan amount is not as high and the spouse has a better chance of obtaining a large enough loan.

You could look into a small life insurance policy.  It probably doesn’t have to pay off the entire reverse mortgage balance and may need to be just enough to pay down enough of the balance so that your spouse can get a loan at that time with no shortfall.  Consider a relocation now if the home is not viable for the spouse alone.  Some borrowers have plans to relocate to be nearer to family or downsize later anyway when one spouse passes so that they don’t have to worry about the reverse mortgage coming due.

And finally, ask yourself if you can’t get the loan at the time, what would you do?  If you have no alternate plan and see no way to work toward one, perhaps a reverse mortgage now is not the right choice for you and your loved ones.  And I think you are doing the right thing by looking in to this now.  If you are remarrying and already have a reverse mortgage as in this case, now is the time to face that and tackle all options together and not make her face it alone later when you are gone. 

Hi Linda,

I am very uncomfortable trying to interpret your dealings with another company from a distance.  Everything you are telling me tells me that you are and were not an eligible non-borrowing spouse and that as such, you would not be allowed to remain on the existing loan at this time.  You’re saying below that now the lender is telling you that you could be a non-borrowing spouse by showing that you were on the loan prior – but prior to what and on what loan?

Are they referring to the previous forward loan before your spouse took a reverse mortgage or the reverse mortgage as a non-borrowing spouse?  Based on your previous comments, you were not a non-borrowing spouse and I believe you indicated that the loan was originally taken prior to 2015 when the rules changed for non-borrowing spouses, is that correct?  And what guarantees do you have that if you pay the back taxes on the property that you will actually be allowed to remain? 

You really need to find your original paperwork and if you cannot, you need to request it from the lender (if you were a non-borrowing spouse, you signed a lot of papers and should be able to get copies of everything you signed).  The next step would be to have the paperwork reviewed by an attorney or free legal aid if you do not have an attorney but don’t wait until it is too late.  I would certainly suggest that you find out exactly what your rights and obligations were before you send any money to anyone and I would not wait until it is too late to do so.

Hi Rita,

This is a great question and one that we get every once in a while with couples who are no longer living together but are still legally married.  If you are legally married, as you found out, you both have to sign a lot of the paperwork, even if one of the spouses no longer lives in the home.  Also, married couples, even those living apart, can only get access to one reverse mortgage at a time.  He cannot get another reverse mortgage at this time on another property. 

Good Morning,

That would depend on whether he was at all involved as a non-borrowing spouse and when the loan was originated.  If he is an eligible non-borrowing spouse, meaning he is not on the loan but they took his age and information into account when they did the loan, he still can stay in the home for life provided he meets the same criteria as your mother.  He would not have access to any remaining funds on the line though since he is not a borrower on the loan.  If he is not considered in any of the original documentation as an eligible non-borrowing spouse, then the loan would become due and payable when the last remaining borrower permanently leaves the home.

The disposition of the home depends on your mother’s wishes and the laws of the state in which the property is located.  If he has claim to the property or is her heir, he would have the same rights as any other heirs to pay off the loan and keep the home, sell it and keep the proceeds after repayment of the reverse mortgage or to walk away without liability.  If he has no title or claim to the property, then it would be up to other family members who do to determine what would be the final disposition – the same as would be the case with any other loan on the property.

Hi Linda,

Now you are getting into the realm of legal advice and I am afraid I cannot help you there.  We are not licensed to give legal advice and therefore, I would strongly suggest that you contact a licensed attorney in the area where the property is located.  If you are unable to pay for legal assistance, check on the internet for free legal aid services in your area.  Many times there are attorney’s and paralegals who will offer free legal aid to those who cannot afford to pay for an attorney. 

But you do need to know what the lender is telling you and not telling you.  The lender is merely telling you that you have to go to the court to obtain the title and once you have the title.  I informed you of this in the earlier answers to your earlier questions.  As I stated before, the first step is for you to have the title transferred to your name (or your sons if they are to keep the property as you also indicated before was a possibility) and that transfer needs to be done through the court.  The attorney or paralegal you contact would be able to guide you through this process.

Once you have title to the home, if you are 62 or older, you can apply for your own reverse mortgage.  But you need to know now that the property will have to have increased significantly in value or you will have to come in with quite a bit of cash to close the loan.   You see, HUD has cut back the program in the past few years so as a percentage of value, a reverse mortgage you get today will not give you as much money as it did in the past.  When you add this to the fact that you are paying off a loan on which the amounts HUD would lend was higher at the time, and interest has accrued on the other loan, (and your husband was older) if the balance is not lower on the current mortgage because you did not draw all the funds available, your reverse mortgage benefit will not be great enough to pay off the existing loan unless the property has gone up in value substantially since the last loan was closed.  Before you spend a lot of time thinking this will be your plan of action, I would suggest that you visit our online calculator and see if the reverse mortgage proceeds for you now will be great enough to pay off the existing loan.  If the proceeds for a new loan are not high enough and you do not have the funds to bring in to make up the difference, this option would not work for you and would only be a waste of you time that you could use better.

I would encourage you to visit our calculator at https://reverse.mortgage/calculator to see if a reverse mortgage for you based on the current value, the current HUD parameters and your age are a viable option at this time.  Please don’t hesitate to give us a call if you have any questions at all.

Hi Ron,

I’m sorry you are going through this.  I think I missed something on your question though and I want to be sure I answer as completely as possible.  You said that you are almost 62 years old, which would indicate to me that this was not your loan – is that correct?  That would lead me to believe that you are the heir or a non-borrowing spouse.  Do you have title to the property now?  If you have title to the property, have you approached a real estate agent to determine the viability of sale?  I don’t know what is owed on the loan versus what the current value of the property is, but if the lender has indicated that they will not begin foreclosure until October you do have time to sell the home still if there is still equity in the property (and you are right, even foreclosures on a Deed of Trust which occur faster than Judicial foreclosures, do take a minimum of 5 to 6 months to complete once the Notice of Default has been filed).  If the title to the property is not currently in your name, that will limit what you can and cannot do at this time.

I don’t know what summons you are referring to.  A summons is merely a notification of an action or telling you that you need to appear someplace at a particular time.  I can’t comment on what summons you may be referring to and for that portion of your question, I would strongly suggest that you contact a licensed attorney in your area.  If you feel you cannot afford legal representation, there are usually free legal aid offices throughout the nation and particularly one in your area that would be able to answer any legal question you might have regarding the legal process.  I can tell you that the reverse mortgage is a non-recourse loan.  What that means is that if the loan balance is above what the property is worth and the home will not sell for an amount sufficient to pay off the balance, the lender can look to no other assets to repay the obligation.  Therefore, if you can sell the home before the lender has to foreclose and retain some equity, that is by far the best solution.  If not, I would suggest you contact an attorney or possibly a paralegal from a free legal aid service to determine all timeframes so that you can plan accordingly.

Hello Maria,

Married applicants cannot close a reverse mortgage without the participation of their spouse.  Because the loan affects both of their rights, even if your mom were not on title she would be required to take part in the loan process or your father would not be able to close the loan.  Non-married co-owners of properties must still have both owners’ consent to place the financing as you cannot encumber only half of a property.  So even if your mom and dad were not married, if she owns the property also, that too would prevent him from doing the loan without her participation.  Conversely, even though she is the only person on the current loan, the same would apply to her with him for a new loan.  She could not do a reverse mortgage on the property without his participation in the process as well.

Hi Landa,

If he took the loan before you were married, you are not on it and therefore, would not be covered by it's terms (the ability to live in the home for life). Once the last remaining borrower on the original loan no longer lives in the home as their primary property, the loan becomes due and payable. To avoid having to face a due and payable situation with one of you still living in the house, you would have to refinance that loan with a new reverse mortgage in both your names.

Yes she can.  He will be signing certain documents indicating that he is aware that the loan becomes due and payable when she permanently leaves the home and he needs to be aware of that but otherwise, he can still stay on title with her.

Hi Beatrice,

As long as you also stay on title, you can also add anyone at any time to title.  Remember though that this does not protect them from the loan being called due and payable should something happen to you or should you ever permanently move out of the house.  It will establish their ownership but the loan would be due when you no longer live in the home as your primary residence.

Hello Robert,

Your girlfriend may be on title and that would mean that depending on the manner in which the title is vested and how you have determined the successors rights, she may then own the property either in whole or in some sort of common ownership with your other heirs at the time you pass but that would not affect the loan.  The loan would still become due and payable at the time you no longer live in the property.  HUD has a provision since 2014 for “eligible non-borrowing spouses” who are listed as such at the time the loan closes but this provision does not extend to others such as friends or other family members.

She would have plenty of equity which may allow her to refinance the loan with or without using a reverse mortgage (she would have to qualify under the current program parameters) or possibly sell and relocate, wither with or without the use of a reverse mortgage at the time of her own as well.  But she cannot simply be added to your reverse mortgage and so you should both be considering acceptable alternatives for when that day comes.

Hi Linda,

Please forgive me but I am not 100% sure what you are referring to with your question so if I don’t answer this correctly, please don’t hesitate to ask again.  I think you are asking about a non-borrowing spouse situation, is that correct?  But what puzzles me is that I am not sure what resolution you believe you received from the lender.  You are correct that the loans closed in 2006 were under a different set of rules.  I think from what you have written that you were a non-borrowing spouse at the time the loan was closed but what I can’t tell from the question is whether your spouse has passed or if you are just looking to be added to the loan at this time or what?  I am concerned that you may have gotten only partial information and that you need to take more action to protect your interests.

Any reverse mortgage borrower can add a spouse (or anyone else for that matter) to title at any time and the loan cannot be called due and payable under the terms of the loan.  As long as at least one original borrower remains on title and living in the home, the borrower can add others to title and it does not affect the loan.  So yes, you can always be added back to title, always could be added back to title, but that does not add you to the loan or protect you from the loan being called due and payable if you are not a borrower or an eligible non-borrowing spouse if the borrower passes or no longer lives in the home.   The rules were different for loans closed prior to the HUD changes in 2014 that became effective in 2015.  The only way to be certain that the loan would never be called due and payable in the event of the death or if the borrower were to permanently leave the home would be to refinance that loan with a new loan in both of your names so that you are also on the new loan. 

It doesn’t make any difference how long you have been married, so you sending them a copy of the marriage certificate and Deed would not affect this.  Here again, this only makes me think they are working with you in this way now and requesting this information is as a result of the passing of your husband (but again, I’m only guessing).  Don’t confuse the fact that they are requesting information so that they can work with you and give you information about the status of the property/loan and think that they are going to add you to the outstanding mortgage – it doesn’t work that way.  If I am guessing correctly, and something has happened to your spouse, I strongly suggest you look into your own qualification at this time so that you are not taken by surprise if in fact you do receive notice that the loan is now due and payable.

Hi John,

The state does make a difference as the state of Texas for example, does not allow for a non-borrowing spouse and you would not be able to complete the transaction in the state of Texas.  In other states though, you both would be on title and only you would be on the loan but your spouse would be considered an eligible non-borrowing spouse.  This is an important distinction.  On most reverse mortgages we caution borrowers to be wary to make sure that the eligible non-borrowing spouse would be ok knowing that they could live in the home for the rest of their lives without having to make a payment, but they have to know that they could not ever access any additional funds should something happen to the borrowing spouse (the spouse over age 62) and he/she was no longer living in the home.  However, in your case, there really is no adverse effect for the eligible non-borrowing spouse!

When you use the reverse mortgage for purchase, you have access to all the funds from the start to use to buy the home.  For this reason, there are no other funds available later and therefore, the eligible non-borrowing spouse would not lose anything by this provision.  The spouse can live in the home for life without making a payment (the spouse has to meet the same obligations of paying taxes and insurance as the borrower anyway) and they still own the home the same as they would if they were on the loan.  And as I said, since all the eligible proceeds are used from the very beginning to buy the home, there is nothing left on a line of credit that would have been lost to the non-borrowing spouse otherwise.  For the purchase transaction, the underaged spouse is very attractive.  If you live in a state other than Texas and would like to see how the numbers work for you, please feel free to visit me here for a no hassle, no pressure, real-time proposal based on your information and needs!

Hi Linda,

You should check your loan documents.  If you have a HUD HECM reverse mortgage, you should have the provisions that allow you to stay in 2015. Please review your loan documents, that spells out the terms of the loan, the the changing whims of a lender.

Hi Cheryl,

Many of the loans we close are done by borrowers who have received the property as a result of gift or inheritance and so the answer is yes.  All you need to do is be sure the title has changed and live in the home as your primary residence.  After that, it is the same qualification requirements as any other reverse mortgage with an eligible, non-borrowing spouse.

Hi Kelly,

All individuals on title should agree to any new financing or the lender might have problems enforcing terms of the lien agreement.  One spouse cannot bind the other unless a Power of Attorney had been granted previously.

Hi Kathi,

There is no problem with this and the loan would not be called due and payable as long as at least one original borrower still lives in the property as his/her principal residence.  So as long as both husband and wife were on the loan at the time the loan was closed, the loan would be just fine if either one of them were to leave the residence as long as the other remained.

Hello Rita,

I’m sorry for your loss. Please don’t get the loan and your property rights confused. I can’t tell you what you need to do to secure your property rights because they are different in different states based on the laws but I would suggest you contact an attorney as my guess would be that probate is the first step – but I don’t know and you really need to know.

Secondly, I can tell you that as the non-borrowing spouse, you could be an eligible non-borrowing spouse in which case you would be able to stay in the home without the loan being called due and payable, or a non-eligible, non-borrowing spouse in which case the lender will call the loan due and payable and you would need to either pay the loan off if you want to stay in the home or sell the property.This makes the probate question even more important, especially if you determine that you will need to sell the home.

I suggest that you contact an attorney sooner rather than later so that you know what you need to do and can formulate a strategy that will work to your best interests.

Hello Annelisa,

That would depend on a number of things including when the loan was closed and if you were an eligible non-borrowing spouse at the time it closed. Also, you may be able to refi into a loan of your own if you are over 62 and qualify now. I would urge you to first check your documents to see if you have the right to remain in the property after the eligible borrower passes and if not, check your eligibility on our calculator to see if you can do your own reverse mortgage before assuming you have to sell.

Hi Kim,

You "can", but it would require a lot of cooperation on his part. As long as you are still married, even if you are separated, he would still have to consent and sign a lot of the documentation.  Once the divorce is final, you would no longer needs his involvement.

Hi Linda,

I hate hearing about these stories.  The time to think about this is before you do the loan, not at this point.  We always advised borrowers not to do the loan by dropping an underaged spouse unless you had a clear plan for when the time came that the loan became due and payable should the older spouse predecease you and those are the odds.  Prior to HUD changing the rules in 2015, the only options for loans closed prior to that time with an underaged spouse was the pay the loan off by refinancing or with other funds available, sell the house or walk away with no obligation.  That means that once you turn 62 the loan would have to be refinanced into both your names or make certain that you had a life insurance policy or some other vehicle in place so that the loan could be paid in full upon the demise of the older spouse.  Otherwise, the younger spouse would have to sell the home at that time if there was still equity in the home or let the lender take it if not. 

Many couples had second homes that the younger spouse wanted to move to in that case or plans for the younger spouse to move to be with family and were covered when this time came but many others never considered this eventuality.  It is a very bad time to start trying to figure out what to do when a spouse passes and you are not prepared and I do not envy your position now.  The first thing I would do is determine the equity position in the home and make sure if you have not already done so, that you are added to title again in a manner so that when the time comes, you don’t also have to worry about trying to have the title changed after your spouse has passed.  Probate and other issues are much easier if you are already on title.  If there is equity in the home, you can look into a reverse mortgage for yourself but being much younger, your ability to get one on your current home will depend on the outstanding balance on the existing reverse.  If you used all the funds available at your husbands greater age and accrued interest on that higher balance, the chances are good that you might not be able to get another loan now UNLESS your home’s value is above the HUD limit at the time the loan was originated in 2009 (which would have been $417,000 or lower).  The HUD lending limit today is $679,650.  If your home is at or above this value, you may very well qualify for a new reverse mortgage on the home now.

Finally, if you do have good equity in the home but you don’t think you can get another reverse mortgage on the property due to the values, etc, HUD also offers a reverse mortgage purchase loan that you might be able to utilize to downsize into a new home that meets your needs and will allow you to stay in the home for life without making a payment.  Here again, you don’t have to wait and can actually start this plan now if you find out that the equity is there and this will work for you.  You can do the purchase and downsize while you still have the current house and loan, you just have to also sell the house and pay off the current reverse mortgage to close the new one.  I hope this helps and I wish you the best.  If you would like more information on the refinance or the reverse mortgage purchase, please feel free to visit me at my calculator here. 

Hi Jerry,

You can add anyone to title at any time as long as you also remain on title.  The fact that you add someone to title will not change the terms of your loan though.  In other words, by adding this new individual to title, the property title (depending on how you vest the title) might convey to him/her upon your passing, but that does not change the terms of the loan.  Once you are no longer living in the home, the loan becomes due and payable.  The title can be changed, but you cannot add another person to a loan that has already closed.  If you wish to have a reverse mortgage that would remain outstanding if something were to happen to you, you would have to refinance the loan with a whole new loan in the names of the people for whom you wish to have the loan terms be effective.

Hi Donna,

You can always apply for and get the reverse mortgage but there is a caveat, as long as you are separated and not divorced, it will require your spouse to be a part of the transaction by signing forms and attending counseling, etc., even if he does not live in the home and is not on title.   If you do not wish for him to be involved in any way, then you must wait for the divorce to be final and then his participation would not be necessary.

Hello Ivana,

HUD has a provision for eligible non-borrowing spouses that would protect you in the event of the passing of your spouse but it does not extend to unmarried individuals. You can still get the reverse mortgage and stay on title, but the loan would become due and payable if something were to happen to the eligible borrower and he was no longer living in the home.

Hi Lidia,

Unfortunately you cannot just add your name to an existing loan. You would have to refinance that loan with a new loan in both your names.  Please feel free to visit my online calculator to see if a refinance would work for you.

Hello Verne,

Ues, you van get a reverse mortgage but if you are still married,there will be some participation required by your spouse.  You will not be able to obtain the loan without her knowledge and consent.

Hello Lillian,

I am sorry for your loss.  If you are also a borrower on the loan, there is nothing you need to do at this time.

Hi Don,

HUD will not allow borrowers to use more than 25% of the home for business purposes and there is some business use that HUD will not close a loan once it is determined that the home is being used as such (i.e. hotel or air bnb).  So if your endeavors do not change the nature of your home, it is still a residential property and not commercial or otherwise and you are still using the home as your primary residence, you will have no problem with using a small portion for home-based businesses.  Having said that, I am not personally aware of a lender or HUD ever calling a loan due and payable on an existing borrower who exceeded the 25% rule anyway.  It might mean that the loan would not be approved if you were looking to close the loan today if you exceed the 25% usage, but I have not seen a lender call the note due and payable if the borrower still occupied the home as their primary residence, paid the taxes and insurance on time and did not change the nature of the property (in other words, the neighborhood didn’t change and there were no billboards in the front yard advertising the new businesses).  I think you will be just fine.

Hi Barb,

The reverse mortgage is a non-recourse loan and the only thing the lender can ever ultimately look to for repayment is the property itself. However, if they are still married, he will be required to acknowledge and sign many of the reverse mortgage documents.  The lender still can't go after him or other properties as a result.

Hi Sheryl,

If you are 62 years of age or older, you are on title and you live in the home as your primary resident, you do not have to be married to the other owner of the property who also lives there.  We have had siblings, children, cousins and just ordinary friends who owned homes together who got reverse mortgages with both as co-borrowers and full protection if one should pass first when both were over the age of 62 and lived in the property.

Hi Mel,

Since HUD issued their Final Rule last year, non-borrowers who are on title no longer have to come off of title for a borrower to get a reverse mortgage as long as other title holders are willing to acknowledge the terms of the loan and allow the financing and there is no rule about who can live with you if they are not on the title to the property.  In other words, you can get the loan whether or not the others living there are on title if you qualify, it will just be a matter of what paperwork will be required.

Hello,

If this is something you are only contemplating, HUD no longer allows borrowers to do this.  Both ages will be taken into consideration and you would also be allowed to stay in the home for life.  If this is a loan you took prior to 2014 when HUD changed the rules and you are not on a reverse mortgage now, when your husband passes, the loan becomes due and payable.  The loan can be paid off (most achieve this with a refinance) at that time or sold and paid off.  If you received a reverse mortgage after 2014, you should be an eligible non-borrowing spouse though and should be protected.

Hi Carlene,

Your issue is not necessarily with someone trying to get you out of the house but in paying the mortgage off when it is called due and payable.  If your husband were to pass, the lender would call the loan due and payable.  You have the title and you absolutely can stay in the home, but there is now a loan that must be paid in full or the lender would institute foreclosure proceedings.  If you can refinance the loan into another loan in your name, or if there are insurance funds to pay the reverse mortgage off, or if you have other funds available to you etc., then you are fine and yes, you can stay in the home.  There is nothing that says you have to move but you must remember that the loan becomes something that you will need to pay off all at once at that time.  This is what some people don’t plan for and that is what causes many of them to sell the home at that time.

Hello Sheryl,

To be able to be an eligible non-borrowing spouse and be able to remain in the home after the death of a borrower, you would have to be the borrower’s spouse at the time the loan was originated and meet the HUD guidelines.  Then the program benefits would be determined by your age (the younger borrower) and you would be able to remain in the home even after the borrower passed.

Hello Cherry,

Yes you do need to start taking steps immediately to pay off that loan.  The title will pass to you so you have no issues with owing the home, but the loan will now become due and payable and if you are not prepared to either pay off the loan with other funds available to you or refinance the loan with a loan in your name, eventually the loan will go into foreclosure.  If you are unable to pay off the loan or refinance it, you would be much better off selling the home and keeping the equity than letting it go into foreclosure. 

The sooner you begin getting things ready on your end the better off you will be.  If you wait for the lender to contact you, your time will be limited and you may be forced to accept a loan or a purchase price would not otherwise accept if you had more time to negotiate.

Hello Rodney,

Not only can you, but I strongly suggest you do so.  The loan documents do not prohibit her from bringing others onto title as long as she also remains on title and continues to live in the home (and meets the other reverse mortgage requirements of payment of taxes and insurance of course).  If you change the title now while you are both alive into something with right of survivorship now (i.e. husband and wife as joint tenants), then that would be one less thing you have to concern yourself with at a very stressful time in your life, after the death of a spouse.  If it is your intent to sell the home at that time, if you are already the legal owner of the property, you would be able to move forward without having to change title first.

Remember, this is not intended as legal advice and you should consult an attorney to discuss any other possible ramifications regarding taxation, heirs, etc.  There are things you want to be sure you do so that you do not create a taxable event with the ownership change and a knowledgeable attorney can keep you from making any costly mistakes.

Hello Jason,

There are two separate issues here.  One is the mortgage and one is the legal right of the spouse.  The lender or servicer will only work with the individual who is listed on the loan or someone authorized by that individual to obtain information.  Financial privacy rights laws do not allow the lender or their authorized servicer to give out any information to unauthorized parties.  If your mom’s spouse is guarding the information after 12 years of marriage and not allowing her to gain any knowledge of the loan, I think that’s a shame but I know of no way to circumvent his desires on a loan on which only he signed as the borrower to grant rights to a third party (even if she is his spouse now). 

With regard to staying in the home by paying off the loan or refinancing if/she he passes, part of that would depend on how the title passed.  Will she even own the home at that time or does it pass to other heirs?  If she inherits the home, as the heir and the new property owner, she would have the right to repay the obligation and remain in the home or she could sell the property.  If she does not inherit the property and the title went other heirs, it would be up to the other heirs as to how that would be handled.  Either way, the loan would be due and payable at that time.

Hi Bill,

If you plan to leave the house to her (and it sounds like you do), I would suggest you look into adding her to title now.  You should discuss this with your estate attorney or family to determine any other possible ramifications, but by doing so now, may be able to have her already on title and then not have to worry about having the title changed after you passed while the clock is ticking and eating up her available time going through probate, etc..  This is not legal advice, it’s just one possible method and you should check with your attorney to see if this is a good way for you to go.

She would have to either refinance the loan or pay the loan off with other funds available to her.  If she could not do that, then she would have to sell the home and the equity would be hers after the reverse mortgage balance had been repaid.  The best thing you can also do is to contact the servicer now and find out what they will require from her at that time to negotiate and get information on the loan.  It may require a written authorization, it may require a Power of Attorney but whatever they will need at the time, get it done now so that she has authorization to obtain any information she needs to proceed on the closing of the loan.

Most of the time, the servicer will take a while to even be in a position to begin any actions to recover the loan balance but I advise people not to wait until too late.  If you know that you must sell the home because you cannot get a new loan, then work on doing so sooner rather than later.  Have all the pieces in place so that you can work with the lender and put the home on the market as soon as is feasible.  If that is going to be the inevitable outcome anyway, do it under your own terms while you still have time to take your time and get the best offer.  Don’t wait until the servicer starts a foreclosure action and then you are forced to take a poor offer just to meet the timeframe.  It usually takes upwards of 6 – 9 months to even get things to a point where a property is ready to foreclose but why take the chance?

Hello,

I’m not sure if you mean you would like to be added as a borrower who is not the current borrower’s spouse (as would be the case if you were not married but lived in the same home) or if you are actually referring to a non-borrowing spouse (as would be the case if you were recently married but were not on the existing loan taken out before the marriage), or if you were a non-borrowing spouse and are now seeking a way to be added, but in any case, you could not be “added” to the current loan. Your spouse or the current property owner can add you to title if you are not on the title to the property, but you can’t just add another party to a loan that has already closed. If you wanted to change the terms of an existing loan by adding additional people to it, that would take a whole new loan and therefore, you would have to refinance the existing loan to include both of you in the new loan.

Hello Colette,

The reverse mortgage is a non-recourse loan which means that the lender cannot seek repayment from any other assets you have but if you voluntarily let the house go into foreclosure because you just don’t want to live there any more or try to sell it, there are other ramifications.  The lender could not seek repayment from any other assets but you would have a foreclosure against you and your credit.  You also would not be eligible for another reverse mortgage (or any HUD type financing for that matter) for as long as there was a loss outstanding on the loan.  Since spouses are included in reverse mortgage considerations, that would make your new spouse ineligible for a new loan later as well if you tried to obtain a new loan after letting one reverse mortgage go.  You would be far better off if the property could be sold – have you looked into this option?

Hello Betty Jean,

If your husband is your non-borrowing spouse and your heir, you can add your husband back to title right after the loan closes.  He doesn’t have to wait for you to pass to try to “buy back” the property.  This way, he would already own it and it would just be a matter of him deciding if he wanted to pay off the loan and keep the house, less it or what.

Hello Mason,

There is not currently a jumbo reverse mortgage program that allows for the provision of a non-borrowing spouse.  This is the reason for such a disparity.  If you are unmarried, the calculator only takes your age into consideration to determine the loan amount or Principal Limit.  The Jumbo or Proprietary Reverse Mortgages currently have no provision for a non-borrowing spouse and all borrowers must be 62 years of age or older.  Therefore, when you add a spouse aged 56 to the equation, the only program available is the HUD HECM program and the loan limits are much lower and they take her age into consideration. 

Until a jumbo program comes into the market that allows for a non-borrowing spouse or borrowers below the age of 62, the HUD program is the only option.

Hello Mary Lu,

If you are married, both spouses must sign.  Separated is still married until the divorce is final and then at that time, only your signature would be required.

Hello Faye,

Firstly, let me tell you that I am sorry for your loss.  You can relax though, if you and your husband had the loan together, you don’t need to do anything at this time.  As long as at least one of the original borrowers remains living in the home, the reverse mortgage is still in effect and there are no reporting requirements you have to meet.

Hello Warren,

Whether you are both living together or not, married couples can only originate one reverse mortgage for the individuals in the marriage at a time, regardless of whether or not one spouse originated the loan before the couple was married or whether or not they cohabitate.  When the lender puts your wife’s information into the HUD system as a non-borrowing spouse on a new loan you attempted to close, it would come back as ineligible because she already has a reverse mortgage. 

Hi Debra,

If she did that 5 years ago as the math seems to indicate, that would have been before HUD made the changes to the program to allow non-borrowing spouses to also be allowed to stay in the home for life.  When they closed the loan in 2012 or 2013, by her coming off title and signing over the home to her significant other, they did not use her age at the time to determine the benefit amount and therefore, she does not have the same protections as those whose younger ages were considered when determining the loan amount.

However, since they are both over 62 now, if the home is located in an area where they have experienced appreciation, they may be able to refinance the loan now in both their names and then that would not be a problem later.  They may even find that they have access to a little more money now but their eligibility would depend on how much the home had appreciated and how far over 62 he was at the time as that would mean that the benefit amount was derived based on an older age for a borrower at a time before HUD cut back benefits.  Follow me over to my calculator and with just a little information, I can help you determine if a refinance would work in their case.  For a refinance of an existing reverse mortgage, you will need their current statement for the calculations.

Hi Flavio,

That depends on a number of things.  But to make the answer fairly short, in order to be able to stay, a non-borrowing spouse would have to have been designated as an “eligible” non-borrowing spouse at the time the loan was originated, must have been living in the home at that time and still is living in the home and must take title to the property within a short time after the borrower passes.  To be an eligible spouse, the loan must have been closed after HUD defined the eligible non-borrowing spouse status in Mortgagee Letter 2015-02 and it became effective with all Case Numbers issued after January 12, 2015. 

Those previously ineligible (underaged) spouses of reverse mortgage borrowers became eligible non-borrowing spouses and they are now allowed to continue to live in the home, but then again, their ages are also taken into consideration when the reverse mortgage proceeds are determined.   The problem HUD had previously is that the loan amounts may have been based on the life expectancy of the borrower who might be in his/her late 70’s and who removed a spouse in their early 50’s to get the loan but that would obviously throw off all expectations of a payback period and corresponding loan amounts.  Under the new parameters, the older borrower can now still get the loan but the younger borrower’s age is used to determine the benefit or loan amount and that amount is significantly lower, but then again, the younger spouse can also stay in the home for life. 

To determine whether or not your loan contains the provisions necessary to allow your spouse to remain in the home, you can either check to see if the loan application was taken after January 12^th, 2015 or review your loan documents (Note and Deed of Trust or Mortgage).  The non-borrower provisions are clearly laid out if your loan contains provisions to allow a younger spouse to remain after the older spouse’s passing.

Hello Flavio,=

That depends on when the loan was closed.  HUD changed the rules and the non-borrowing spouses started receiving protection under the new rules early in 2015.  Prior to that, the non-borrowing spouse’s age was not taken into consideration in the loan calculations and therefore, only the borrower’s age was used to determine loan benefits.  On those older loans, the loan becomes due and payable when the borrower is no longer living in the home and therefore the non-borrowing spouse does not receive the same protection.   If you are not sure which loan you have, your loan documents will tell you.  The loans done under the new terms specifically spell out the rights of the non-borrowing spouse whereas the older loans do not even mention the non-borrowing spouse. 

Hi Val,

If you are talking about getting a loan now, your spouse would be a non-borrowing spouse on the loan and she would not have access to any money still available on the line if you pass with money unused, but she would still be able to live in the home for her life as well.  HUD changed the rules a few years back so that non-borrowing spouses are now protected as long as they meet the same rules as the borrowers (the live in the home as their primary residence, pay the taxes and insurance and maintain the home in a reasonable manner).

Hi Kim,

Under the rules that changed in 2015, you would be considered an “eligible non-borrowing spouse” as long as you were on the title and lived in the home at the time the loan was received and continued to live there and pay the taxes and insurance and any other assessments (such as HOA dues), you could continue living in the home for life even at the time your husband passed.  Under this scenario, the HUD program also takes your age into consideration from the start when they determine the benefit or loan amount so the amount he would receive will be less than a borrower his age that does not have a younger spouse because they are using your age as well to be sure you can remain even after he has passed. 

The thing you do want to consider is that if he passes, since you are not on the loan, you would not have access to money left on the line of credit at that time (if any).  Because you are not a borrower on the loan, if there was a line of credit available of, for instance, $100,000 when your husband passes, you would not have to repay those funds if you sold the house because you never borrowed them, but you also would not have access to them.  Some thing to keep in mind in your considerations.

Hi Brandy,

If your mom was an “eligible non-borrowing spouse” on the first loan, then my advice to you would be to have her contact the lender and supply them with whatever documentation they require to show that she does, and always has, lived in the home.  They will probably be a bit dubious since the mail is always sent to the property and unless the son is also living there, he would not have had access to the notices (and you already told me he does not).  But you may need to get HUD involved as well and possibly enlist the aid of an attorney to be sure your rights are protected to be sure that they do not call the loan due and payable or continue with this process.

However, if the loan was taken out before HUD changed their rules in 2014 and implemented them in 2015 with regard to non-borrowing spouses, your mother’s age was not taken into consideration when the loan benefits were determined and therefore whether her stepson sent in notification or the lender was notified through other means, the loan would be due and payable at this time.  If your mom is on title, she still owns the home, but the loan is due.  This means she would need to either pay the loan off with funds available to her or refinance it at this time with another loan in her name if she wanted to keep the property and continue living there or consider selling at this time.  This is the main reason we had always advised borrowers to consider very carefully prior to closing a loan for just the qualifying borrower when one spouse was under-aged before HUD changed their program.  In fact, today still we remind borrowers that even though non-borrowing spouses may be able to stay in the home, they will have no access to remaining funds on credit lines after the borrower passes and caution them to always keep that in mind before proceeding.

The first thing you need to do is determine if mom is an “eligible non-borrowing spouse”.  If so, show the lender that mom does and always has lived in the home.  If not, you have to realize that the fact that the loan became due and payable when her husband passed was one of the terms under which they obtained the loan and they closed the loan under that provision.  In that case, I would advise you to be sure you had mom work to refinance the loan or take steps to get the most equity from the home that mom can get at this time by selling the home herself if possible because foreclosure will not do that.

Hello JB,

I’m not sure I understand the question but please allow me to answer as best I can.  If the spouse is non-borrowing on another mortgage now and the couple want to do a reverse mortgage, the status of the old loan makes no difference at all.  If the spouse is on title and lives in the home and is over the age of 62, that spouse can also be on the loan and be a co-borrower, regardless of the existing mortgage.  Since in this case the spouse would not be 62 until September though, if you wanted to close the loan prior to that time, the younger spouse would be an “eligible non-borrowing spouse” which would allow that spouse to live in the home for life if anything happened to the older, borrowing spouse, but it would not give the younger spouse access to any funds left after the borrowing spouse passed.  For this reason, if you are not using all your funds just to pay off your existing mortgage, you may really want to think twice about doing the loan before September.  However, if you decide to move forward, just make sure you know the rules because even though the eligible non-borrowing spouse can remain in the property for life, if there is a very large amount of money left on the line that he or she cannot use, it might not be the best option.

Hello John,

All borrowers on a reverse mortgage must be 62 years of age.  HUD will allow non-borrowing spouses under the age of 62 to remain on title and give them protection to live in the ho even if the borrower passes, as long as they live in the home and continue to meet all the same requirements as the borrower with regard to property obligations should the borrower pass before them.  In your case, the niece is not a non-borrowing spouse, they are not married and therefore they would not meet this exception. 

If the half ownership were deeded back to your wife, she and her sister could get a reverse mortgage under HUD’s new Final Rule issued just September of last year IF they both occupy the property and both would have the right to remain in the home for life, regardless of who passed first or if one left the home for any reason later.  However, since your wife does not occupy, under this new final rule, she can stay on title but will have to sign several certifications that she knows that the borrower is getting the HECM mortgage; Acknowledges the terms and conditions of the loan (that it becomes due and payable when the occupying borrower is not longer living in the home); acknowledges that the property will serve as collateral for the HECM loan and the non-occupying borrower will also have to attend counseling.  In the past, HUD would have required that she be removed from title but they realized that she could be added back at any time (as explained in the Final Rule) and so they created the certifications and now will allow this situation to occur. 

Hi Betty,

You would have to add your Husband to title and you would be the non-borrowing spouse at that point (he would be the only one of the two of you on the loan), but you can do the loan under those circumstances.  The positive is that as long as you both are living there, you will have access to all the funds of the mortgage and even if he predeceases you, you can continue to live in the home for the rest of your life with the same terms (you have to keep the taxes and insurance current and reasonably maintain the home).  The negative is that if your husband were to pass and there was still a lot of money still left on the line of credit unborrowed, those funds would not be available to you because you are not a borrower on the loan.  You need to consider all the benefits and ramifications and decide if it is right for you.

Hi William,

You would have to add her to title to be a borrowing spouse.  This would allow her to also have access to the funds still available on the loan if there is a balance available when you pass.   If she remained off title (and I don’t know why you would want to do that), she would be a non-borrowing spouse but her age would still be considered and she would also be allowed to stay in the home even if anything happened to you.  The only thing is, a non-borrowing spouse has no access to the loan funds and so if something happened to you she could not access the funds and although she could continue to live in the home without having to make a payment, the loan proceeds would be frozen and unavailable to her (even if it was an untimely accident and the majority of the loan was still unused early in the term).  Because of these circumstances, I can’t think of any reason not to add her to the title and just make her a co-borrower on this loan regardless of the circumstances of the last loan.

Hi Robert,

You can add your wife to title at any time, you do not have to wait until she is 62 years old.  The documents do not prohibit you from adding others to title as long as you are still on title which will help her if anything happens to you and she needs to act regarding the property because she would already be on title, but that does not allow her to remain in the home unless she is an eligible non-borrowing spouse.  If you did the loan with her as the eligible non-borrowing spouse, then she can also live in the home for life but I would whole heartedly suggest that you add her to title now.  Any attorney who is familiar with title and taxation should be able to help make your change to make sure that there is no affect on the taxes on the home. 

Hi Frances,

As long as you are over the age of 62, the home is in your name at the time you apply and you and the home both meet HUD’s guidelines, yes, you can do a reverse mortgage under those circumstances.

Hi Mike,

As of the date of this writing, Texas state does not currently allow one spouse to obtain the reverse mortgage by relinquishing the ownership rights of the other spouse in order to do so.  There have been many discussions of allowing non-borrowing spouses, especially since they are now protected when they are eligible non-borrowing spouses at the time the loan is closed, but it has not passed at this time.

Hi Stella,

If you were not a co-borrowing spouse or an eligible non-borrowing spouse at the time the loan was closed, you do not have the protection of being able to remain in the home for life after the borrower passes.  If he has done a will to leave you the home, you may own the property, but you would still have to either pay off the loan with your funds or refinance the loan at that time to continue living in the property.  You both can refinance the loan now in both names and this would not be the case but then you would both have to qualify for a whole new loan at the current terms and if you are 62 now, depending on how old your husband is or actually was at the time he got the loan, and the current value of the home versus the value then, the new loan parameters may not be enough to pay off the entire balance of the old loan.  ARLO can tell you if a refinance would work for you by clicking here ARLO or going to https://reverse.mortgage/arlo.  It’s free, easy and no obligation to see how the numbers would work for you!

One thing I would recommend if he has changed the will to leave you the house anyway is that you contact an attorney to discuss having the method of title changed to both your names now with right of survivorship.  You can ask the attorney to be certain that it is done so that there are no tax consequences and then if something were to happen to your husband, you would already be on title.  This should eliminate the need for probate of the property or anything to delay your ability to act with regard to securing financing or selling the home at that time – but check with the attorney.  I don’t know if there are any other family members or if there are any other issues, but I have seen too many instances where the title is tied up in probate court or someone else in the family contests a will (especially in the case of second marriages where there are children by the first marriage or other heirs who were not approving of the second spouse) who made it impossible for the will of the married couple to be carried out or at least in a timely manner.  If you change the title now while you are both here and able to make sure your wishes are followed, it gives the remaining spouse more freedom to do what they need to do later.  I can’t give you legal advice so I would certainly discuss this with your attorney but the loan documents allow for it as long as the borrower remains on title with you and does not transfer all of the interest to another party. 

Hi Bill,

This is a very interesting question and let me make sure I answer it carefully for you.  Yes, you can leave her off the Deed, there is no reason you have to add her to title.  However, if she is married to you and occupying the home at the time you do the loan, HUD considers her an “eligible non-borrowing spouse” which means that she will have the right to live in the home after you pass subject to certain conditions – as far as the loan is concerned.  One of those conditions is the ability to perfect the title in her name and if you both have set something up so that the title will pass to your other heirs for example, she would not be able to do so and therefore the loan would become due and payable at that time and your heirs would have to proceed as though she was never part of the equation and either pay off the loan with their funds, refinance the loan with another loan or sell the home to pay off the loan.

Also, it is important to note that just because you intend to leave her off title, HUD will still consider her age when determining the amount of the benefits due to the fact that she can live there for the rest of her life under their rules, even if that is not your intent.  She would have some documents and counseling to attend as your spouse regardless, but if she is younger, your benefit amount will be lower whether you include her on the loan or not.

Hi Janine,

Yes you can, but there are conditions.  Firstly, you and your spouse had to have taken the title in some form that allows right of survivorship.  Joint Tenants, Community Property (and sometimes with right of survivorship stated), just Husband and Wife with no expressed interest, etc. all pass title automatically to the surviving spouse upon death of one of the spouses in CA.  You would have to check for those in your state.   However, some couples choose to take title as Joint tenants with an expressed interest.  For example, John Smith as his 50% undivided interest and Mary Smith as her undivided 50% interest as Tenants in Common (and the interest can be in any proportions).  Typically this is the case with other than married individuals and couples of second marriages when individuals want to assure family members of their share of an inheritance, etc.

To do the loan though, if the title was such that it reverted to you, you just have to get an Affidavit of Death recorded so that just the remaining spouse can get the loan.  Your lender and your title company can help and it is not difficult, you sign the form at closing and it is recorded with the death certificate and you typically get several death certificates for just these types of purposes at the time your spouse passes form the mortuary who handles the funeral.

Hello Arthur,

I’m not sure I can answer this question as asked.  When you say a “non-borrowing spouse” (NBS), that typically means a spouse who either is not yet 62 or is not otherwise eligible for the loan (doesn’t  live in the property, etc.).  Either way, both souses must agree to the terms of the loan and sign the loan paperwork or the loan will not close.  That is true for any reverse mortgage regardless of whether there are any issues with incompetence (dementia) or not.  If one spouse does not want the loan, he/she can refuse to allow the loan on a jointly held property.  In fact, HUD has requirements of spouses for some signatures on some documents regardless if they are even on the ownership of the property and never will be.  If you are married, HUD does require your spouse to sign some of the disclosures on the loan (or their POA). 

Normally, a NBS does not have access to the funds and this is something that we always caution borrowers about when considering doing a reverse mortgage with a NBS, that if something happens to the borrower, the NBS can stay in the home if they are an eligible NBS (they are living in the home at the time of the loan and continue to do so and then follow all the same conditions as the borrower with respect to keeping taxes and insurance and any other property charges and maintenance current), but they cannot have access to any remaining funds once the borrower no longer lives in the home.  In your scenario, I don’t know which spouse has the dementia, but if the NBS is the borrower who does not and is therefore the Power of Attorney,  ( “POA” and the POA must predate the onset of the Dementia as determined by the POA document and doctor’s letters verifying the onset of the illness), then the spouse without the dementia would be the one requesting funds until the passing or the permanent relocation out of the property by the borrowing spouse, at which time any remaining funds on the line would no longer be available even if the other spouse had the POA.  An eligible NBS who was so deemed when the loan closed can remain in the home for life as well without the loan being called due and payable but if there were still funds available on the reverse mortgage, the NBS cannot access them. 

I hope this answers your question but if I misunderstood the intent, please feel free to contact our office.

Hi Sarah,

I would recommend that you contact a local attorney to determine your rights on this matter.  I cannot remember the law from 2007 and I could not give you legal advice even if I thought I could, but I don’t remember being able to close a loan in Texas by removing a spouse around that time, to get a higher loan amount or with an underaged spouse in order to close the loan in any instance.  That is forbidden today, but that could have changed sometime after you closed your loan and I have no idea for certain what the laws were when you closed your loan.  This is why you really need to speak to a licensed attorney in your state to determine your legal rights to be sure.  

Hi Lisa,

No, your husband cannot get the reverse mortgage loan without your involvement.  In fact, just the fact that you are married would require your signatures on several documents even if you were not on title.

Hello Bradford,

The spouse does have to be on the loan and therefore on the title in order to continue to have access to the loan should the borrower on title pass before them.  The spouse could be an eligible non-borrowing spouse that allows them to stay in the home for the rest of their life even if something happens to the eligible borrowing spouse on title so they still do benefit in that instance, but if there is still money available on a line of credit and the borrower passes, the non-borrowing spouse would not have access to those funds. If you are using all of the reverse mortgage proceeds from the start (as would be the case on a purchase or possibly to pay off an existing loan), this would be a moot point and the eligible non-borrowing spouse would have the same protections and benefits as the borrower.

Hi Julie,

In 2008, the reverse mortgages closed did not have the same provisions for non-borrowing spouses and they did not take the younger, non-borrowing spouse’s age into consideration when determining the benefit or Principal Limit amount.  Therefore, they are not set up to allow anyone other than the borrower live in the home for life.  To ensure that you can also stay in the home even after your spouse passes, if you are now over the age of 62, you and your spouse should consider a refinance in both names.  Since you are younger, the amount available will be less (unless the property has gone up in value significantly) so that will be one of the factors you will have to weigh, but now is a good time to consider all options while all options are still available to you.

Hi James,

You cannot add additional borrowers to an existing loan and refinancing is the only way to achieve what you are seeking to accomplish at this time.  

Hi Steven,

We are not licensed in Maryland so I and only speak to the HUD requirements.  I don’t know if the state has anything that may be in addition to the information I am about to give you.  HUD does allow you to get the loan on your own in this circumstance, but until you are actually fully divorced, she will still have to sign on some of the paperwork as a non-eligible, non-borrowing spouse.  I don’t know the current status of your relationship but if you apply before you are legally divorced, she will be called upon to sign some of the paperwork and attend the counseling.  If you want to be able to do the loan without her being involved at all, you would have to wait for the divorce to be final.

Hi Cheryl,

Unless you live in a state like Texas where they state laws forbid it (and that may change), then you can be a Non-borrowing Spouse and your spouse who is over the age of 62 can get the loan.  The good thing now is that HUD will also take your age into consideration and you will also be able to live in the home for the rest of your life without having to make payment on the loan (still have the same rules as the borrower, must live in the home as your primary residence, pay the taxes and insurance when they are due and maintain the home in a reasonable manner).  The one thing you do need to keep in mind is that since you are not a borrower on the loan. If something should happen to your spouse and there was still money available on the loan, you would not have access to those funds because you are not the borrower on the loan.  Something to consider and keep in mind.

Hi Bob,

If you are both over the age of 62, living in the home and on title, you meet the criteria.  There is no requirement that you are married.  The only time there is a specification for married couples is if you are trying to obtain a loan and one person is under the age requirement of 62.  HUD only allows this for a non-borrowing spouse, otherwise if both individuals are over 62 there are no marriage stipulations.  We have done loans for completely unrelated parties who are both living together and on title, siblings living together and even where a parent and a child over the age of 62 both obtained a reverse mortgage together.

Hello Michelle,

Once a loan is completed and the legal documents are recorded, the lender does not remove one borrower at a later date from the transaction.  If you want to remove him entirely, you would have to refinance the loan with a new loan that had just your name on the loan and on title to the home.

Hi Rebecca,

I am afraid I cannot completely decipher the issues with the information present but I think I have an idea of what the situation may be.  Firstly, if your dad only took a total of $3,800 from the reverse mortgage, there is no way the balance could be approaching or at $200,000 now.  Are you sure that he did not also pay off an existing mortgage with another lender at that time?  Usually when I get questions like this and I get into the situation, I see that the borrowers didn’t take out a lot of cash on their line but they did use a good amount from the start just to pay off a loan that they already had that eliminated their existing mortgage payment and allowed them to live payment free.  You really need to see if you can find his original paperwork to see if this was the case with dad as well.  If you can’t find dad’s paperwork, you should be able to get copies from the lender.  You can also search Deeds that were of record to see if there was a Deed on the home at the time the reverse mortgage recorded and that would indicate a loan was paid off (but that would not tell you what the balance of that loan was when paid off).

The next thing you need to keep in mind is that the HUD program did change (not the laws) in 2014 but they changed for all loans done after the change became effective.  It did not alter the loans that had been done prior to that time.  And the new program rules state that “eligible” non-borrowing spouses may remain in the home even after the borrower passes.  To be eligible, the non-borrowing spouse has to be considered at the time of the initial loan and there are some other requirements (they must also occupy the property, taxes and insurance must be paid on time, etc. – just as the same rules that apply to the reverse mortgage borrower).  And then the age of that non-borrowing spouse is also taken into consideration for the Principal Limit or maximum borrowing amount available.  In 2009, this was not the case so if his spouse (at that time or if he later remarried) was not 62 years of age and not on the loan, or in the case of a remarriage was not on the loan at the time because they were not married at the time, would not have been considered in the loan amount and therefore would not be eligible to stay in the home.  To ensure that, he would have had to refinance the loan when she became 62 or after the rules changed so that he had a loan wherein she was an eligible non-borrowing spouse if she was still under 62 at that time.

We had always strongly suggested that couples consider this fact very carefully before completing a reverse mortgage loan when one spouse was not yet 62 years of age, especially if borrowers were taking one owner off title.  Thankfully, the new rules do protect younger spouses now, but it also means that borrowers do not receive as much money when the age of the younger borrower is considered.  We now even have had borrowers requesting loans under the old terms since the changes in order to obtain higher amounts (which HUD will no longer allow).  It’s really a “catch 22”, if you take the younger borrower’s age into consideration, it can really lower available funds at times (especially is the spouse is considerably younger), but it also protects that younger borrower from being in the position of your father’s wife now.  We had seen some instances where borrowers removed the younger spouse from title and the loan just to obtain the larger loan amount prior to the changes in the rules even though the younger borrower was still over 62 and that practice is no longer allowed as well.

Lastly, I think you are confused about the “insurance” on the loan.  Mortgage Insurance is insurance paid against the risk of default.  Homeowner’s insurance is in place against the risk of fire or other disaster, if you never have a fire or a claim, there is no bank account with all your insurance money in it for you.  The Mortgage insurance works the same in that it is there to be used in the event of a default to be paid in the event that the values decline, the lender goes out of business and there is still money due to borrowers or HUD must advance funds for other items but there is no money “placed into the bank” by HUD to be drawn later by the borrower.  If the borrower defaults, the borrowers pass and no heirs want the property or the home is later not capable of paying off the amount owed on the reverse mortgage, the borrowers and their heirs do not have any other obligations on the debt and the lenders are not left with outstanding debts, the insurance fund pays for losses.  The loan is a non-recourse loan so borrowers and heirs never have to pay for any money lost.  No matter what happened, no matter how much was owed, no borrowers or heirs can be forced to pay any more than the property is worth to repay the debt.  When the market took its last tumble, many people had borrowed more than the homes were worth after the values plummeted and they were still allowed to live in the homes for their lives, making no payments and the heirs had no recourse on the debt.  This is what the insurance covers.  In 2012, this loss was reported at over $5 Billion dollars by HUD so this is a very real cost and not a money making fee from HUD.

Hi folks,

If your payments were made on time and it’s finalized with no other issues now, you can still get a reverse mortgage.  It does no good to remove your wife from the title/loan as HUD no longer allows married borrowers to remove the younger spouse in search of higher loan benefits.  The loan will still be based on the age of the younger spouse.

Hi Warren,

If your sister was included as an “eligible non-borrowing spouse” when the loan was closed, they took her age into consideration and she is also protected for as long as she lives in the home (she should make sure she is back on title now with her husband so that there are no problems later because the requirement is that she is the title holder and it’s easier to do that while they are both still living than after someone passes).  If the loan was closed several years ago before HUD developed the eligible non-borrowing spouse designation, I would suggest that they look at the possibility of refinancing the loan with the new parameters that would allow her to remain in the home for life when her spouse passed.  Otherwise, who would have to refinance the loan at that time or pay the loan off by other means (other funds available to her or sell the property).

Hi Carrie,

It should be the husband and wife and in fact, HUD requires that we take both spouses into consideration for the loan.

Hi John,

The “non-borrowing spouse” classification is for spouses who are not of age who also live in the home at the time the loan is taken by a borrower who is at least 62 years of age.  It is not available for borrowers who later remarry as the program benefits are determined by the age of the younger spouse and there would be no way to quantify this number if subsequent (and younger) spouses could be added at later dates.  Borrowers who remarry can add their new spouse to title which would allow them to keep the home, but that does not change the fact that the loan becomes due and payable when the borrower no longer lives in the home.  At that time the new spouse would retain the ownership if they were added but would have to refinance the loan in their name or pay the loan off with other funds available to them (insurance payment, etc.).  Otherwise, as the owner, they could sell the home without having to go through probate if they had previously been added to the title (you should check with your legal counsel to determine the best method based on your current method of holding title and local laws).  The only way you would be able to be certain that she could live in the home for the rest of her life without the loan being called due and payable would be for you to refinance the loan with a new reverse mortgage with both of your names on title and on the new loan. 

This part of your question I can answer because it deals with the reverse mortgage loan itself.  The remainder of your question regarding prenuptial agreements and inheritances deal with legal issues and estates and for that, you are correct, I would need to refer you to legal counsel.  

Hi Rich,

If you are both over the age of 62, on title and living in the property, you do not have to be married to both be on the reverse mortgage.  If you marry after the loan is completed you cannot just “add” a new spouse to an existing loan and would have to refinance the loan to add another individual at that time.  Therefore, if this is the plan from the start, you would want to keep that in mind when applying for the first loan.

Hi  Kris, 

If you and your husband are both on the loan, you are supposed to remain in the home as a condition of the reverse mortgage. You are allowed temporary absences for up to 12 months though so if you have the home listed and you believe it will be sold and closed before 12 months after you have left the home, you are still in compliance with the loan. I caution you though, the 12 months is for temporary absences if you take steps that indicate you have made a permanent move, you would no longer be able to claim a temporary absence and the lender would not be required to wait the entire 12 months.

Hi Rose,

I’m sorry, I am not sure what you mean and this is important and I don’t want to try to guess and maybe give you bad information.  I think you are telling me that your mom is a non-borrowing spouse and her husband passed and now there is a loan due and you are looking for a way for her to remain in the home on the current mortgage.  I can’t begin to guess the circumstances under which the first loan was originated and you really should not take too much time before finding out what option are available.  Now that mom owns the home she can always pay off the loan with her own funds or with a refinance of another loan (can be a reverse mortgage if she is now over 62 and qualifies) or she can sell the home pay off the loan and keep the equity without any intervention from anyone.  However, if the lender is saying that she would not be allowed to stay in the home at this time, I would suggest that you contact HUD directly and make your case to them.  If the lender failed to inform you of anything, you should make HUD aware of this fact.  If you feel as though you are not getting anywhere quickly enough, I would advise you to contact legal counsel in the area where the home is located as they can tell you what options you have to stay the foreclosure, etc. until you can straiten things out. 

Do not wait until it is too late to make your case and to retain competent legal counsel.  There are services available in most areas even if you cannot pay for an attorney so if that is not within your means, then look up free legal aid but again, do not wait for the last minute.  I wish you both the best.

Hi Carol,

To obtain a reverse mortgage any married couple living in the same home requires multiple signatures from both spouses, even if the home is in the name of just one of the spouses.  Whether he had put your name on the title or not, you would also have had to attend the counseling and sign multiple forms acknowledging the transaction.  If you are age 62 or older, living in the home and on title, you would also have to agree to be on the loan.  If you are under the age of 62, you would still be considered an eligible  non-borrowing spouse and in most states, your husband could still get the loan with you still being covered for as long as you live in the home as well.  If the state you live in does not allow such a transaction (such as the state of Texas), then he could not get the loan at all until you are also 62 years old and then you would also have to sign the paperwork at that time as well.

Hello Anne,

Perhaps the conflicting information you refer to is a result of a recent HUD change.  Non-borrowing spouses were not allowed to remain on title until very recently (but were always allowed to be placed back on title after the loan closed).  In September of 2017, HUD’s “Final Rule” went into effect and non-borrowing spouses no longer have to come off title to close the loan. 

Your concern about a foreclosure is always warranted because this is your home and you would not want to lose your rights and interest in the home but under the foreclosure proceedings, the foreclosure was filed based on the title and the legal documents at the time the loan was closed.  Any changes to title after that time would not have been reflected on the foreclosure notice.  It would state that XYZ lender was taking action based on the Note and Deed executed by John Doe on such and such a date.  If Jane Doe did not sign the documents and did therefore did not agree to be bound by those terms, she would not be mentioned in the foreclosure documents even if John later deeded the home to John and Jane as Husband and Wife.  That would give Jane the right to sell the home if anything happened to John, but it would not hinder the lender’s position on a lien that was filed prior to the subsequent change of title.

So to answer your last question, yes, HUD used to require the underaged spouse to come off title in order to obtain a reverse mortgage but as of September of 2017, this is no longer a requirement.  You are still a non-borrowing spouse and would not have access to the loan in the event your spouse passed and there were still funds available on the line of credit though.

This would obviously be a moot point if all the funds available had been used prior to this time since there would be no additional funds available at that time anyway.  This would be the case with a fixed rate which only has one option of a full draw at closing, a purchase reverse where all the available funds were being used to buy a home, a loan where all available proceeds were being used to pay off an existing loan or in the instance where you and your spouse used all available line of credit funds before your spouse passed.  Where this could become a point of contention is if your spouse passed and there was still $100,000 still on the line but now you had no access to the funds because you are not a borrower on the loan.  All good things to consider, but you will not have to come off title.

Hi Brenda,

You would not be consider “not eligible but would be considered an eligible non-borrowing spouse.  This distinction means that you would not be on the loan, but with HUD’s Final Rule that came out in September of 2017, non-borrowing spouses no longer have to come off title to close the loan and you can live in the home for your lifetime as well.  Also, since you are using all the HECM proceeds to purchase the home, the old stigma about a non-borrowing spouse not being able to access funds if the borrowing spouse were to pass (such as the case with a line of credit on a refi where the borrowers are only using a portion of the line to start) is moot anyway because there are no additional funds to access anyway.  You would not have to do any refinance’s later as you would already be on title and would be eligible to remain in the home for life as long as at least one of you continued to meet the program eligibility requirements (pay the taxes and insurance, maintain the home in a reasonable manner and live in the home as your primary residence).

You can request your reverse for purchase quote here and we will return providing the down payment requirements based on your age. 

Hi Valerie,

Of course you do, you are the property owner!  The loan is due and payable unless you are an eligible non-borrowing spouse in which case you can also stay in the house for life, but the house belongs to you.  If you are mot an eligible non-borrowing spouse, you would have to make arrangements to repay the loan with a new loan, with other funds (life insurance, etc) or sell the home and with the proceeds.  It's good to have a plan in place before you need to take action 

Hello Yvonne,

The short answer is no.  If your husband also lives there then HUD requires that as a spouse living in the home, you follow a certain protocol that includes his rights to remain in the home after you pass should you pass first and even if he does not live in the home and is therefore ineligible, there would still be a few signatures required of him and there is always the HUD mandated counseling required.

Hi Leslie,

The reverse mortgage program requires all borrowers to be at least 62 years of age to qualify, there is no lowering of the minimum age for other considerations (disability, veteran status, etc.).  There may be other programs available in your area though from which you could benefit and it might be a good idea to check with your local HUD HOC (Home Ownership Center) office or city offices to inquire of such.

Hi Susan,

Depending on the state in which you live, HUD will allow you to do a loan where the spouse who is not yet 62 becomes the non-borrowing spouse and also has the right to live in the home for the rest of his/her life under the terms of the reverse mortgage providing that spouse also continues to meet the reverse mortgage conditions (lives in the home as their primary residence, pays the taxes and insurance in a timely manner and maintains the home in reasonable condition).  Some states such as Texas, does not allow for the non-borrowing spouse at this time though so you need to verify your state requirements.

Good Morning Wendy,

A non-borrowing spouse is exactly that, a spouse who is not on title and was not a borrower on the loan at the time the loan was placed.  A foreclosure action is filed against the property in the name of the individuals on the Deed of Trust or Mortgage.  If you did not sign the loan agreements and documents, then you would not be included in any subsequent actions taken either.  The loan is a non-recourse loan and the only thing the lender can look to for repayment of the debt is the property but if they do have to file a foreclosure action, when they file the foreclosure documentation, it would only include the names of the borrowers who executed their agreements – which you did not.

Hi Veronica,

The short answer is “no” but both the wife and the husband must be on the account to which the check is made payable and there is nothing to stop the spouses from immediately splitting the funds and moving them into other accounts if they so desire.

Good Morning,

As long as at least one of the original borrowers on the loan still occupy the property, you have met the occupancy requirement and there are no issues whatsoever.

I'm sorry Deborah, I really am not able to follow all that is going on here but it sounds to me like you are doing what you need to do by engaging legal counsel and not just taking everything for granted.  Your attorney will continue to try to contact those with whom he needs to speak to straighten things out and if necessary, file to take it to court to require all parties to produce their paperwork.  I wish I could be of more assistance but as I stated, I am not sure what all the facts are here and since this is really a legal matter, would have to advise you to seek legal counsel anyway and you have done so already so it looks as though you are on the right track.

Hi Steve,

Borrowers and their eligible non-borrowing spouses at the time the loan is made are allowed to remain in the home until all original eligible parties have passed or none still remain living in the home as their primary residence.  At that time, the loan would become due and payable (assuming that all terms of the reverse mortgage are maintained which includes payment of the taxes in a timely manner, keeping the home insured and maintained in a reasonable manner). 

The situation you are describing would not meet the requirements because the second party is not an active Beneficiary of the trust.  As the executor of the trust, she will be able to carry out your wishes with regards to the property but trusts often contain executors, successor trustees and other parties that would not qualify for the loan under the terms of the reverse mortgage and therefore would not be able to keep the loan from being called due and payable should something happen to the Beneficiary of the trust at the time the loan was closed.

If you are set on having another individual be able to remain in the home without the loan being called due at your passing, this individual would have to be a borrower (could be a spouse or any other eligible individual) or the eligible non-borrowing spouse at the time the loan closed if you are holding title as individuals.  If the title is held by you as individuals, the other individual would also have to be on title to the property.  If the title is held in the name of a trust, the other individual would also have to be an active Beneficiary of the Trust.

As always, I would encourage you to contact your legal representative to discuss these options and how it would affect your circumstances to determine the best way to proceed.

Hi Mary Anne,

In the scenario you provided, your new spouse would not be an original borrower or an eligible non-borrowing spouse and therefore, he would not be entitled to stay in the home on the original loan even after your passing.  Re verse mortgage loan or benefit amounts are determined based (among other things) on the age of the youngest spouse.  HUD uses actuarial tables much like insurance companies when they are calculating premium rates to determine how much money borrowers will receive based on life expectancies and how long they are anticipated to be living in the home without making a payment before the loan is expected to be repaid.

If the loan allowed for the addition of subsequent individuals (whether that would be other family members as I am often asked with children who later move into the home or with new spouses), that loan could be deferred over and over again throwing out any possibility of determining what the actual risks would be to HUD and the mortgage insurance fund.  Investors would not buy the bonds that ultimately fund the loans if no repayment was ever forthcoming and the program would cease to exist. 

If you want to add a future spouse to an existing loan to enable that spouse to remain in the home even after your passing, whether that is due to the passing of a current spouse or just that you were single at the time you obtained your loan, you would have to refinance the loan with a new reverse mortgage in both of your names.

Hi Luanne,

If your husband is not living in the home, he is an ineligible non-borrowing spouse and his age would not be considered for the reverse mortgage loan BUT he does also have to go through the counseling and does have some documentation that he has to sign as your spouse.  He would not be on the loan and you do not have to put him on the title, but he would have to supply his identification information which would also show that he lives in another location and as I previously stated, would have to attend the HUD-mandated counseling which would inform him of the possible consequences of being a non-eligible, non-borrowing spouse.

Hi Diana,

You are correct.  If your spouse misrepresented information to obtain a federally insured loan, that would be fraud and is a felony.  You may want to seek legal counsel to determine the best course of action.

Hi Noel,

Yes, this is a common occurrence provided the title was in your and your spouses' names with right of survivorship and not with each of your interests passing to someone else (i.e. children).  This issue is a fairly common issue that the title companies have to deal with and would need one of the original Death Certificates supplied to you that they can record with the documents but other than that, it is usually not a big issue.

Hi Lee,

To receive the reverse mortgage on your primary residence, you would both have to be on both the title and the loan.  Furthermore, you would need to qualify with all expenses from both properties.   You would need to retain the property with the reverse mortgage as your primary residence which means that you must live in the home more than 6 months each year and cannot be absent the property for more than 12 consecutive months.  In addition, the lender will be careful to be certain that the occupancy makes sense with a "second home" in a nearby community.  

Hi Lawrence,

You can find the procedures for obtaining a reverse mortgage with a spouse who is not yet 62 in our blog here.   The thing you really have to remember is that some states (like Texas for example) have restrictions that do not allow this to happen.  If you need assistance to determine if you can do a non-borrowing spouse loan in your state, please do not hesitate to contact us.

Hi Tracy,

In all but just a few states, borrowers with spouses who are not yet 62 can still get a reverse mortgage but the spouse is a "non-borrowing spouse", meaning the younger spouse is not on the title or the loan.  The non-borrowing spouse is now protected should something happen to the borrowing spouse but you still need to know about the rules and the expectations before you decide to move forward.  You can read all about it in our article here. 

Hi Jim,

Most states allow a married couple to drop the younger borrower from title long enough to obtain a reverse mortgage and HUD now also protects the rights of the non-borrowing spouse to live in the home for life as well.  However, not all states will allow it (such as Texas) and it's not a good idea for all borrowers.  I suggest that you consider it carefully and if you do decide to continue, add your spouse back to title as soon as the loan closes so that there are no issues later if something should happen to you before "you get around to it" later.

Hi Celana,

I'm sorry but I cannot answer this for you.  Ownership rights have nothing to do with the mortgage and I am not an attorney and could not give you legal advice.  You should consult with an attorney for help with such a matter.

If you are also a borrower on the original loan, there is no notification requirement as there is still a remaining borrower living in the home and the terms are still being met.

Hi Ray,

You can use the proceeds for whatever purpose you want, but HUD limits the amount you can take at the single draw if you are not using the funds to pay off an existing loan so you may want to request a proposal to see if the reverse mortgage will give you the proceeds you need for such an undertaking.

You can only have one reverse mortgage at a time but yes, many borrowers have had a reverse mortgage on a home and then sold that house. Moved and used a reverse mortgage to buy their next home.

Good Morning DeWayne,

You're fine.  As long as you keep living in the home you meet the terms of the mortgage and there is nothing to worry about with regard to occupancy issues or the passing of one spouse since you are both on the original loan.

Hi Ellen,

Your husband can add you back to title at any time whether you are on the loan or not.  In fact, the loan documents specifically state that there is no call event as long as your husband remains on the title and lives in the home no matter who is added to title later (so you could add yourself and children as well if you wish).  Adding yourself and family members back to title prevent a probate scenario if something should happen to your husband while you are not on title.

But Ellen, I am concerned with something else you have written here.  The mortgage company cannot just "place you on the loan" and I have not heard of any companies who have given a wholesale representation to borrowers that they would not call the loan due and payable when the borrower on the loan passes.  The current lender may not even have the authority to make that decision if the loan has been sold into a mortgage backed security or if they sold the loan to another lender by the time the event occurs.  Therefore I would be really careful to be sure that the assurances you think you have are real.  The only way I know of is to be a borrower on the loan documents at the time the original loan closed (which you were not), an eligible non-borrowing spouse at the time the loan was closed at which time the loan proceeds were determined by using your date of birth (which if the loan closed more than 7 years ago before you turned 62, this designation did not exist), or by refinancing the loan at this time using both of your dates of birth and both of you being on the loan now. 

There is no way of which I am aware to "add a borrower" to an existing loan and therefore, I believe you do not have the protection that you believe you have.  HUD has implemented a method by which lenders may chose not to call a loan due and payable with a surviving spouse but as I stated, I am not certain that your current lender can give you assurances at this time that you will always be covered in this instance because this protection is not written into the loan documents on which your loan originally closed as they are for eligible non-borrowing spouses today.  I would encourage you to not only change the title asap to add both you and your husband to title (make sure you have someone who is familiar with the process help so that it is done as a non-taxable event) but also to do a review of the circumstances should your husband pass.  You may find that a refinance into both your names at this time would be very advantageous, even if you did not get a lot more money from the new loan and you may find that you and secure a new loan for very little or next to no cost.  We would be happy to look at this for you if you 

Hi Alberto,

She will be considered a "Non-borrowing spouse" and would not be allowed to be on the title or the loan when the loan closed BUT since HUD does allow eligible non-borrowing spouses (which is because she also lives in the home) to continue to live in the home for their lives as well without making a payment, the Principal Limit would still be determined based on her younger age.

Hi Connie,

Yes. Your husband would be considered what is called an “ineligible non-borrowing spouse” and since he is not living in the home you can take a reverse mortgage in your own name and we would base the proceeds on your age alone. 

Hi George,

If your spouse is not on the reverse mortgage with you or she was not protected under the new non-borrowing spouse rules when the loan was made you will need to refinance now adding her as a borrower to the loan to protect her for her remaining lifetime as well. If not the loan will become due and payable upon your death and she will have either 6 months to refinance the loan into a loan of her own which may also include a reverse mortgage based on the amount available to her at that time or up to 12 months if she is making efforts to sell the home. 

Hi Lou,

Your question is very difficult to answer without more information.  If your wife is on the current loan, she absolutely can.  If she is an eligible non-borrowing spouse, that is, she was a non-borrowing spouse when you obtained your loan but she is eligible to remain in the home based on when you received the loan and the parameters in effect at the time, then yes she can remain in the house for as long as she lives, BUT she would not have access to the line of credit because she is not a borrower on the loan.

The final scenario is if you obtained the loan and your spouse is not a co-borrower or a qualified non-borrowing spouse and then the loan would become due and payable when you no longer occupy the home.  At that time, your spouse would have to make arrangements to either refinance the house with a new reverse mortgage in her name (which if you have a small balance sounds like it would be a very viable option), with a standard or forward loan, with other funds available (such as insurance proceeds) or would have to sell the home at that time.

Hello Nizar,

You cannot simply add a borrower to an existing loan.  To add a spouse, or anyone for that matter, to an existing loan, you would have to refinance the loan and then you, the property and the new borrower would have to qualify under the current guidelines/parameters of the program.  Since you have had the loan for almost 7 years now, depending on appreciation of the property, how much you borrowed and the interest you have accrued, the refinance may or may not be an option without having to bring cash in to close the loan.  The only way to know for sure is to visit our website and run the numbers on our calculator or contact our office if your property is located in one of our approved states.

Hi Billy,

We cannot do a loan for a non-borrowing spouse in Texas at this time.  Both borrowers must live in the home and be eligible for the loan.  The rights of heirs and spouses do not jive with the requirements of the HUD Home Equity Conversion Mortgage.  But also, but to be clear, the minimum age is 62, not 65.

This is not a question of the reverse mortgage but rather one for an attorney.  I'm sorry, I can't give you legal advice and I do not know what document you signed or what effect it had on your title.  A "disclaimer" is merely something that serves as notification.  I don't know any of the particulars about the loan itself or the title and you have both issues to consider.  I don't even know if this is a first marriage for each of you and if there are other heirs involved.  I'm sorry, this is a great question for an attorney in the state where the property is located but even he/she will need more information to be able to answer it.

Hello Douglas,

As long as the surviving spouse is also on the reverse mortgage or is an eligible non-borrowing spouse, they can live in the home for life without making a mortgage payment.  They still are bound by the same rules, must occupy the home, pay the taxes and insurance and maintain the home in reasonable shape.  Otherwise, there is no time limit on either spouse.

Hi Jim,

If your spouse is not on the original loan, the loan would become due and payable upon your permanently leaving the property.  You determine who your heir is and if you leave the home to your new spouse, she can stay in the home, but would have to make arrangements to pay off the loan with either a new loan or with other funds available to her if she intends to stay there.  If property values were to drop or for any reason your property was not valued as highly as the amount owed on the reverse mortgage, she would have the option to pay off the current loan at the balance owed, or 95% of the current market value whichever is less so that would enable her to obtain financing but she would still have to be able to qualify for the new loan.

Hi Stella,

I am afraid that is not accurate.  HUD Mortgagee Letter 2014-07 states that with Case Numbers assigned on or after August 4, 2014, borrowers with eligible non-borrowing spouses would have the birthdates of the non-borrowing spouse also taken into consideration when the loan amount or Principal Limit was determined and then those non-borrowing spouses (with certain conditions) would be able to also stay in the home for their lives as well without having to make a payment on the loan.  It only pertained to Case Numbers assigned on or after that date though and did not retroactively affect the loans originated and closed prior to that time.

You  can find a copy of HUD's Mortgagee Letter here.

Hi Terry,

HUD will allow a reverse mortgage when one spouse is over the age of 62 even if the other is not.  This is called a non-borrowing spouse and requires the under-aged spouse to come off title to do the loan.  You can read about non-borrowing spouses here (put in link to NBS).  You need to read the parameters and make sure this is the right decision for you.

Some states, like Texas, however, do not allow one spouse to come off title to do the loan though.  Not knowing where you are located, I cannot comment on whether or not your state allows this practice.  The amount you owe and the value would certainly not be a problem as long as all other loan requirements are met.  

Hi Edyth,

If you leave while still on the reverse mortgage, the only thing you have to worry about is that you cannot quality for another reverse mortgage on another property while still on the first one.  If he stays until he passes, the lender can only look to the property for repayment of the loan due to the fact that the loan is a non-recourse loan.  They cannot make either of you or your heirs pay back the loan with any other assets.

Hi John,

Texas will not allow you to close a loan until she is 62 years of age and the HUD rules allow you to start an application no more than 60 days before her 62nd birthday.  So the answer is you may begin the process by starting your application and completing the required counseling, etc. 60 days before her 62nd birthday, but you must wait for that birthday to close the loan.  Unfortunately, rates and fees have been in a state of flux since the November elections and any quotes you receive between now and then may not be accurate by the time you are ready to proceed. 

Hi Nancy, You can have a non-borrowing spouse under the age of 62 with a reverse mortgage who can stay in the home for life as well if something happens to the eligible spouse, however, this provision will only work with a spouse. Because you have been very specific to say co-owner and "person who lives with you" and have not stated "spouse", I have to assume that you are not married. If this is a correct assumption, the only way you could get a reverse mortgage would be if you were on title solely at the time and you took the loan out in just your name.

You can add this individual back to title the day after the loan closes but I caution you that this is probably not the best option based on what you have told me. If you were to choose this route, the title would be fine and he would be able to retain ownership without any issues after you passed, but the loan would become due and payable if you ever leave the home as your primary residence (including upon death). The end result would be that he owned the home, but would have to be able to refinance the loan into his own name or he would still have to sell it to pay off the reverse mortgage when it became due. When you lose a loved one it's a very difficult time to also realize that you have to sell your home and move. I do not advise it unless he has a plan in place in advance such as the absolute ability to refinance later, has another home to move to that is currently a rental, planned to sell the house and move anyway to be with family, had an insurance policy to pay off the reverse mortgage at that time or some other such plan so that when the time comes, he is covered.

Hi John,

The quick answer is no, and the loan can now be called due and payable requiring wife to pay the loan off with a new reverse mortgage of her own, with other funds available to her or a different mortgage or sell the property.  The longer answer gets complicated.  The spouse should check her options as soon as possible to see what is available to her based on her age, the current balance on the mortgage and the value of the home.

There are some provisions that HUD allows lenders the ability to allow non-borrowing spouses to remain in the home but due to the fact that the loans are sold into mortgage backed securities and the lenders may have obligations to the bond holders, they may not even have a choice.  I have not spoken with a borrower yet who was able to utilize the HUD forbearance provision and while I am not saying that it does not happen, I have not seen it. 

When you say that "at the direction and advice of the reverse mortgage representative...", I'm not sure how to read that.  Did the husband and wife do this because the proceeds were higher for the husband alone, did they do it because the wife was not yet 62 and this was the only way they could get the loan, or what?  The only reason I ask is because I personally made it a point of telling all borrowers with non-eligible spouses how they could do the loan, but also that I didn't recommend that they do it.  I laid out a series of possible circumstances that might make a call provision a moot point (such as insurance great enough to pay off the loan; a second home that the couple owned that the spouse intended to occupy if the borrowing spouse passed or plans to sell the home and move to be with family elsewhere anyway) but we always recommended against the removal of a younger spouse to get the loan otherwise if it wasn't absolutely necessary and felt that borrowers should know all the consequences before doing so.  So I don't know if the "direction and advise" of the loan officer with whom these borrowers dealt was based on his response to a directive from the borrowers to get the loan regardless of an under aged borrower or to obtain a higher loan amount than would have been available keeping the younger spouse on title (if for example that would not have given them enough proceeds to meet their needs).

HUD has changed the rules now and so there is no longer any benefit to taking a younger married borrower off title just to try to get a bigger loan amount.  And if the younger spouse is under age 62, the younger spouse can now stay in the home for life as well, but the loan proceeds are also determined by the age of the younger non-borrowing spouse.  

Good Morning,

There are no disability provisos in the reverse mortgage program, all borrowers must be 62 years of age or older to be eligible.  However, as the spouse of a qualifying individual, your spouse can be an eligible non-borrowing spouse that allows him to remain in the home for life as well, even if something should happen to you.  Since he is not a borrower on the loan, if you should pass and there is still money left on the line of credit, he would not have access to the remaining funds though so you need to keep this in mind when you determine whether or not the program is right for you.

There are requirements he has to meet - he has to live in the home, he has to obtain title within a short time after you pass (and we suggest that you do this as soon as the loan closes so that there is no delay later) and he is bound by the same requirements under the loan that you are (the taxes and insurance must be paid in a timely manner and he must reasonably maintain the property).  Other than that though, he can live in the home for the rest of his life as well without having to make a mortgage payment.

Hi Elke,

They cannot just drop a borrower.  You need to get a copy of the legal documents and those documents will tell you everything.  There were documents that spouses had to sign when husbands and wives chose not to put both on the reverse mortgage (such as when one spouse was not yet 62 or if one spouse was much older and they wanted to receive the higher benefit that dropping the younger spouse from title and from the loan at that time allowed them to do).  You need to either get mom's copy of the loan documents or have the lender send you a complete copy of the documents to see what they did at the time. 

But the lender cannot just drop a borrower from a loan.  The loan is a contract between all the parties involved and the legal documents spell out the terms of the contract.  Once you review those documents, you can see what they did and did not do and if you are not sure, an attorney will be able to tell you.

Hi William,

The only way to be 100% sure the loan is not called if something happens to you is to have your new wife on the loan and the only way to do that is to refinance the loan.

Hello Robert,

Is now okay to take a reverse mortgage with a spouse under the age of 62 and have her protected. Several years ago AARP won a lawsuit against HUD to allow for non-borrowing spouses to remain in their homes. We will base the available reverse mortgage proceeds on your wife's age and should you pass before her she can stay in the home for her lifetime.

Because this is an option that HUD is extending to Mortgagees (lenders) who hold the paper at that time, but it is not required.  I haven't read the ML for a while but as I remember it, it states right in it that the ML does not interfere with the Mortgagee's original rights as outlined in the loan documents.  Yes, there is a chance that the Mortgagee might use this alternative but the Mortgagee may not even have this choice if for instance they sold the loan into a mortgage backed security and are required to do certain things under the terms of the security (based on the fact that investors bought the security based on the legal terms of the security documents among other things).

These is always the chance that the loan holder may use this option because it is allowed by HUD, but I certainly would not want to bet the farm on the fact that it will happen because that is not the terms that are laid out in the security documents and the chances are better that the loan is part of the pool of mortgages that form a security and the terms of that MBS won't allow it.  

Hi Connie,

We never recommend someone come off title with only 2 months until their 62^nd birthday as it just does not make any sense.  Now that the damage is done though, the only way for you to get a Reverse Mortgage of your own or with both of you on it now is to qualify under current program parameters.

The lender did you a huge disservice by advising you to come off title with only 2 months remaining until your 62^nd birthday and telling you that they would allow you to be added on to the Reverse Mortgage once you turn 62 because it simply cannot be done that way and it never has been the case.

As far as your assertion that the fees went up $20,000 more than were originally disclosed to you, that also is not allowed by law.  So my advice to you is to find your original paperwork, emails, notes, etc. from the time of the original Reverse Mortgage and see if you have the lenders original disclosures to you or assertions that they would be able to add you to the loan upon turning 62.

Remember, you can be added to title at any time after a Reverse Mortgage is done, but being added to the loan is something entirely different and simply being added to title does not give you any rights under the loan.

You need to find out what it is that they did and didn’t tell you because there is a big difference between title and added to the loan.  If the numbers, you were quoted initially are in fact $20,000 lower than what you ultimately paid at time of closing you probably want to obtain legal counsel.

There are a number of factors that can affect your loan proceeds such as an appraisal coming in at a lower value than initially estimated.  I recommend that you double check all your numbers and paperwork because the fees cannot go up $20,000 after disclosure.

Hi Sam,

You are the only reverse mortgage borrower and I caution you that you may be the only legal owner as well but let's start with the reverse mortgage.  As the only borrower on the original loan, if something were to happen to you, the loan would become due and payable at that time.  If you want to be sure that the loan will also stay on the home for as long as your new spouse also lives in the property, then you must refinance the loan at this time in both of your names.

The second issue that I alluded to was the title to the property.  You said that you had your wife "included on the property tax files as owner".  I don't know how this was done but you may want to check with an attorney I have seen some county tax assessors that will allow you to change a name on the tax rolls or add a responsible party so that an additional individual may inquire about or pay taxes, but that does not change legal ownership of the property.  I believe it would take Deed from you to you and your new spouse for the ownership of the property to pass to both of you at this time.  I would suggest that you contact a real estate attorney in your area to make sure that your wishes are carried out in the event anything happens to you.  Whether that will require a change in ownership, a will or a trust is something about which the attorney can best advise you.

Hello Jeff,

Reverse mortgage loans are for your primary residence only. It is possible that your non-borrowing spouse could take a reverse mortgage in her own name on another property that she is living in as her primary residence providing that she can fully document

proof of occupancy. Typically we will ask for a full month cycle of utility bills, bank statements and check that the driver’s license addresses pointed to the subject property. You certainly don't want to get in a situation where occupancy becomes an issue later on as this is a mature event of the loan agreement. 

Hello Eugene,

We have answered many different versions of this question but the bottom line is that your new spouse cannot be added to the existing loan, you would have to refinance the loan adding her to the title and loan at this time.  

Good Morning,

As long as you live in a state that allows for non-borrowing spouses, HUD will allow you to get the reverse mortgage and will even protect the non-borrowing spouse now provided she meets the requirements.  I would urge you to read the previous blogs we've written about non-borrowing spouses though because there are conditions and still some concerns you need to be sure are acceptable to you and your wife's circumstances.  You can find that information here (link to one of the blogs we've written about NBS)

Hello Liz,

You are now able to do a reverse mortgage at age 62 with a younger spouse and we are required by the FHA to protect both you and your younger spouse for both of your lifetimes in the home.  If you were to pass away before your spouse, your spouse can stay in the home for the rest of their life as well. 

Good Afternoon, To add your wife now would require a refinance of the loan. You can find out quickly and easily if you can qualify for a new reverse mortgage and usually all we need is a copy of your current statement and both of your birthdates to run the numbers. If you meet HUD's requirements, more often than not, we can do the loan with very little expense (usually $500 or less) so if you can, please send us your current statement and ages and let us see what we can do for you.

Hi Dennis,

At this time we cannot do a loan in Texas with a non-borrowing spouse under the age of 62. The reverse mortgage requires all borrowers to be age 62 and above and in other states the non-borrowing spouse is removed from title in order to complete the transaction. This used to be a very risky proposition but HUD now has protections for the non-borrowing spouse that keep them from having to be removed from the property upon the death of the borrowing spouse.

Texas property rights laws don't allow for this at this time. There has been a lot of discussion and I understand that this is a topic in the Texas state legislature at this time. There is a possible there may be some changes to the current laws at some point in the future so that property owners with spouses under the age of 62 can take advantage of the reverse mortgage program but this has not been approved yet. Keep watching blogs as this could change in the near future.

Hi Richard,

In order for you to be protected as the spouse on a reverse mortgage, you have to have been included in that original reverse mortgage. You cannot simply be added to the existing reverse mortgage at this time. At this point you basically have two options. You can both do a refinance of her existing reverse mortgage adding your name to title and to the new loan and then the reverse mortgage would have both your names on it and you would be protected in the event something happened to either one of you. This would require you to qualify under the current guidelines, to pay the costs of a new loan, and you would receive reverse mortgage benefits based on today's program parameters.

The second option would be to make other arrangements with the proceeds from the sale of your home now so that if and when you passed before her, you would still have the funds available along with the sale of her home to arrange for other housing. You just have to remember that if you keep the existing loan you will have to do something if she passes before you. Whether do you do it now or later is up to you but at least you recognize that you have to keep this in mind and if there are other heirs involved it could get sticky later if you both are there at the time to make sure that all of her wishes are not communicated. Dealing with family can be very trying at times and it's best if everybody knows in advance exactly what your plans and wishes are.

Hi Dolores,

Unfortunately there are so many variables that pertain to this situation that I cannot answer your question fully without knowing more information.  HUD now protects Non Borrowing Spouses that were part of the equation at the time the loan was obtained but that wasn’t always the case and I don’t know when your loan was obtained.  But even knowing that, HUD has a provision for Loan Servicers to follow and that depends on what type of security the loan has been sold into.

Regardless of when the loan was taken out, the borrower and the borrowers heir(s) always own the property and it is the payoff of the loan that needs to be resolved, not necessarily them automatically moving out.  If they don’t have the protection for a Non Borrowing Spouse under the current revised guidelines, then they still have the option to refinance the loan with another loan and keep the property or sell the property and keep the proceeds.  The Veteran status doesn’t impact any of these options.  The loan also allows for payoff of the balance for less than the amount owed if there is no equity in the property and if you would like to discuss that or anything else please give us a call at 800-565-1722

Hi Marc,

HUD does now allow the qualified spouses of reverse mortgage borrowers who are not yet 62 to be considered "non-borrowing spouses" which grants them protection when you pass allowing them to stay in the home for as long as they live as well.  To be a qualifying spouse, they have to be over 18, live in the home at the time the loan is obtained and stay there continuously and then they have to change the title to their name shortly after you pass (if you do not add them before which is what we recommend since as long as you remain on title with her, adding a spouse does not create a call event for the Note and Deed).

The only other things you have to remember is that HUD is going to consider her age in the calculator results and with an age of 50 in the calculation, the benefit amount will be less than it was before so the program will not give you as much money as it did for a borrower over 62.  Also, if you opted for the line of credit and still had money available remaining in the loan and something happened to you, as the non-borrowing spouse she would be able to stay in the home but would not have access to any remaining funds.

You would have to refinance your existing Reverse Mortgage loan in order to accomplish adding your Spouse as an Eligible Non Borrowing Spouse.  HUD has specific requirements for a HECM to HECM refinance which we would need to discuss in detail with you in order to determine your eligibility.  Please feel free to give us a call at your convenience if you would like to discuss this further.

Hi Debbie,

I'm not an attorney and can't answer this. The full answer will depend on what state you live in and the property rights of heirs in that state, Then it will depend on whether your mom and dad put the home into a non-revocable trust because if they held title as joint tenants  in most states,  dad had right of survivorship  and can do whatever he wants with the home as the sole owner. 

My suggestion is to talk to an attorney  in the state where the property  is  located  to determine your rights as an heir. With regard to the loan, she would not be able  to  continue to live in the property after your father passed and the loan would become due and payable at that time.

Who the property would go to as the rightful  heir would depend on state laws, steps your mom and dad took before her passing and subsequent  steps your dad took afterward but before his passing and I simply can't give you an answer. 

Hello Mary Jean, 

Great question and I've gone ahead and answered you in a new blog post: Reverse Mortgages w/Spouse Under 62 Now Carry Protections

Hi Lynn, You do not have to remarry your ex-husband, but to be eligible to be able to remain in the home even after you pass, he would have to also be on the title to the property and on the loan. To be eligible to do that, he would have to be living in the property and be at least 62 years of age. If he is living in the property with you, is on title and on the loan, then if you pass before him, he can remain in the property even after your passing.

Hi Jon,

As long as she is your non-borrowing spouse at the time you take out the reverse mortgage and meets the HUD requirements at the time of your passing (resides in the home and has continuously, transfers the title to include her name if you do not do so before then, continues to pay the taxes and insurance), then yes, she can also stay in the home for the rest of her life as well.

HUD now takes the non-borrowing spouse's age into consideration when determining benefits for the reverse mortgage loan.  Non-borrowing spouses cannot access additional funds since they are not borrowers on the loan so if there are still funds available in the line of credit, she would not have access to those funds so that is something that you need to consider if you have a large line of credit but she can remain in the home.

Hi Richard,

I have to make sure I answer this specifically so that I don't lead you astray so let me set up the parameters of my response.  If both of you are on the reverse mortgage now and one of you leaves the home, it does not affect the loan at all.  As long as one of the original borrowers still lives in the home, then the loan remains valid.  This would also be true if one spouse was a non-borrowing spouse at the time the loan was taken out, and the non-borrowing spouse was the one who left the home because the borrower on the loan would still be occupying the home.

On the other hand, if the loan was done with a non-borrowing spouse but the borrower left the home, that is, it was no longer the borrower's primary residence, then under the terms of the reverse mortgage, the loan would become due and payable.  The loan is only valid as long as one of the original borrowers on the loan continues to occupy the property or if the loan was originated with an eligible non-borrowing spouse and the original borrower passes, but not just if he/she leaves the home for other reasons.  

Also See: How to use a Reverse Mortgage in a Divorce

Hi Wayne,

You can apply for a reverse mortgage 60 days prior to your 62nd birthday but you cannot close it until your 62nd birthday.  Your wife would be a non-borrowing spouse which means she would not be on title to the property and not on the loan, but you can add her back on title later and under HUD's new guidelines, your wife would be able to stay in the home for as long as she lives in it, even if something were to happen to you.

However, HUD is changing their program guidelines on March 2, 2015 so that loans started after that date will have qualification guidelines borrowers will have to meet.  Since you do not turn 62 until June, your application cannot begin until April and therefore, you will fall under the new parameters.  We would be happy to contact you nearer the end of March to update you on current program rates, etc. if you would like but until then, you cannot begin your loan at this time.

Hi Nick,

Firstly, I would never allow you to do the loan without your wife, especially if she was of age, unless that was something for which you made provisions and decided to proceed that way even after my counsel against it.  I would also suggest that you find out if you can do a refinance now to add her, although you stated that you have no money, if there is enough equity, you may be able to do a no cost loan and get her on title.  This is important because if she is not on title and did not do the loan prior to August 4th of this year when her age was considered in the loan, then yes, she is at risk. 

Hi Tom,

No "penalty", but the terms of the reverse mortgage require you to live in the home as your primary residence.  If you move out of the property, whether you rent it or not, the loan would become due and payable requiring you to pay off the loan by either refinancing the loan with a new loan or selling the property.  If you did not do this and the lender discovered that the home is not owner occupied, they would be within their right to begin foreclosure proceedings.

Because the typical foreclosure takes many months to complete, lenders have to consider when is the "right time" to initiate the process if they feel they must resort to foreclosure.  If it appears to the lender that the borrower has violated the terms of the reverse mortgage agreement (and worse if the lender feels that the borrower has taken additional steps to conceal those facts from the lender), the lender would be much less likely to delay the start of the process.  

Hello Maria,

You cannot just "add" a new borrower to title and to the existing mortgage, it would require a refinance of the loan.  This may or may not be an easy task at the time you wish to do it based on a number of factors.  Firstly, keep in mind that when you refinance a HUD Home Equity Conversion Mortgage (HECM or "Heck-um") with another HECM, you do not have to pay the portion of the Up-Front Mortgage Insurance Premium that you have already paid so that is a good thing.  But what is important to remember is that your benefits are determined by factors such as the age of the younger borrower on the loan, interest rates at the time, the program you first borrowed under and property value or HUD Lending Limit, whichever is less. 

So if the new spouse is younger than the deceased borrower and they are younger than the existing borrower, that would automatically take the eligible amount to a lower level.  Even though HUD has strict guidelines for refinancing reverse mortgages so that borrowers are not targeted for churning refinances, most often exceptions can be made when adding a spouse to allow borrowers to refinance who would not normally have met the HUD guidelines - but it might still require the borrowers to bring money in to close if the eligible benefits are lower.  This can also be true if all the funds are used and interest accrues or if HUD changes the Lending Limits. 

The bottom line is that you can refinance to add a spouse, but you need to contact a reverse mortgage specialist to see if it works in your case or if it is feasible for your circumstances.

Hi Sue, 

Since you are both over the age of 62 and you would both be living in the property, you both qualify for the reverse mortgage.  There is no requirement that you be married.

The eligible benefits are determined from the younger borrower's age, interest rates and costs, so if you would like to either go onto our website and run the purchase calculator to determine benefits for your circumstances based on the costs in your area, or contact us so we can get this information, we can give you a better idea of the purchase price you should be considering with $45,000 available to you.  But you do not have to worry, the fact that you are not married will not prevent you from getting the loan and the eligible benefits will not be affected in any way.

Yes you can, but your spouse would have to be removed from title and this is not something we recommend lightly.  Because the loan becomes due and payable when the last borrower on the loan permanently leaves the home or passes, if the younger borrower who would not be on title or on the loan is not ready to move when this event occurs and you do not have other provisions in place beforehand to provide for this, it could create extreme hardships on the remaining spouse. 

Some provisions borrowers have informed us of that worked for them is an insurance policy that paid the mortgage off when the older borrower passed; a second property that the borrowers owned that the spouse intended to occupy after the passing of the older borrower anyway; and also the plans that the younger spouse fully intended to move to another state to be with family if and when the older spouse was no longer living anyway.  Absent a clear alternative such as one of these, it would be very sad for the spouse of a reverse mortgage borrower to be uprooted from his/her home at the worst possible time if that was not in the plans simply because the loan was now being called due and payable with the passing of the borrower and the remaining borrower did not have the means to refinance the loan in his or her own name at that time. Please be sure to read our blog post "Spouse Under 62 Leaves Vulnerability"

Hi Jeri,

All borrowers on a reverse mortgage transaction must be at least 62 years of age, must be on title to the property and must occupy the home.  Borrowers do not need to be spouses, but reverse mortgages require that the property is the primary residence of the borrower and therefore they must live in the home.

Hi Jim, Great question. If you want to have a reverse mortgage with your spouse now included on it, you would have to do a new loan and the benefits would be based on the current value and the youngest spouse's age (your wife). If you took a line of credit before and have not used all your funds, this may not be a tough thing to do (depending on property values and how much money you did use). If however you took the maximum amount of cash available and your property has gone down in value during this time as most of the country has continued to drop in value, then it may require you to come in with cash to close a reverse mortgage at this time in both your names. She can always be your heir and receive the home by will if you do predecease her even if you do not get a new reverse mortgage, but that may not be of any comfort if the values have gone down and she has no way to retire the existing reverse mortgage at the time. Your best bet is to find out what your property is worth, the benefit you both can now receive under current rates and programs at your current value and determine if it makes sense to do a new loan in both your names at this time. The thing you do have going for you are today's low interest rates so its worth giving it a try.

You can't both be on the loan because all borrowers must be a minimum of 62 years old at the time of the loan. We don't recommend dropping one borrower to qualify because while they "can't take the house away from your wife" as you put it, they can call the Note due and payable and if she has no means to pay off the loan, she would be forced to sell the home and move and who knows what the sales environment would be like at that time. She may do very well on a sale and be able to go purchase somewhere else, she may be forced to sell the home for very little and may not have enough proceeds at that time to purchase another property.

We advise borrowers to think long and hard before getting a reverse mortgage where one borrower has to come off the loan for qualification. Some justifying reasons borrowers have given us in the past which makes sense include adequate insurance on the older spouse to completely pay the reverse mortgage loan in full; the fact that the borrowers owned a second home that the younger spouse intended to sell the primary home to move into on the passing of the older spouse anyway; and imminent foreclosure which would mean that the couple would lose their home without the reverse mortgage and the younger spouse intended to move to be nearer to family upon the passing of the older spouse.

There may be other reasons which would make this action right for you, but you do need to understand that the loan will be due and payable as soon as the borrower on the loan stops living in the property as their primary residence due to moving out or passing. Without a good alternative plan in place, you do not want to have the remaining spouse have to face foreclosure if she is not able to refinance the loan or sell the property with adequate proceeds to live comfortably elsewhere at that time.