Can I get a reverse mortgage after 62?
Basic Requirements
To qualify for a HECM, you must be at least 62, own your home outright or have a low mortgage balance, and live in the home as your primary residence. You also need to meet with a HUD-approved counselor before applying.
The amount you can borrow depends on your age, home value, and current interest rates. Generally, the older you are and the more your home is worth, the more you can access. You can receive funds as a lump sum, monthly payments, or a line of credit.
- Age 62 or older
- Own your home or have significant equity
- Use the home as your primary residence
- Complete HUD counseling
- Stay current on property taxes, insurance, and maintenance
How It Works and Costs
A reverse mortgage doesn't require monthly mortgage payments, but you must pay taxes, insurance, and upkeep. The loan balance grows over time with interest and fees, and the loan becomes due when you move out, sell, or pass away.
Closing costs can be high—often thousands of dollars—including an origination fee, mortgage insurance premium, and servicing fees. Compare offers from multiple lenders and consider if a reverse mortgage is right for your situation.
Alternatives and Considerations
If you need cash, other options include a home equity loan, downsizing, or a cash-out refinance. These may have lower costs but require monthly payments. A reverse mortgage can be useful for staying in your home, but it reduces the equity you can leave to heirs.
If you have a non-borrowing spouse under 62, they may be able to stay in the home after you die if certain conditions are met, but rules are complex. Discuss with a counselor.
Common mistakes
- Thinking you can never lose your home—you can if you fail to pay taxes, insurance, or upkeep.
- Assuming it's free—reverse mortgages have significant upfront and ongoing costs.
- Believing you must own your home free and clear—you can have a mortgage, but it must be paid off with the reverse mortgage proceeds.
