Can You Get a Reverse Mortgage If One Spouse Is Under 62? (w/Examples) + FAQs

Yes, you can absolutely get a reverse mortgage if one spouse is under the age of 62. This is made possible by designating the younger spouse as an “Eligible Non-Borrowing Spouse” (ENBS), a protection created after years of crisis where surviving spouses faced foreclosure.

The central conflict stems from a clash between federal law and the government’s own rules. The law that created the reverse mortgage program, 12 U.S.C. § 1715z-20(j), intended to protect a “homeowner” and their spouse from being displaced. However, for decades, the U.S. Department of Housing and Urban Development’s (HUD) own regulation, 24 C.F.R. § 206.27(c)(1), allowed lenders to demand full repayment when the borrower on the loan died, even if their spouse still lived in the home. This created a legal loophole that led to widespread foreclosures against surviving spouses.

This issue became so significant that it affected a substantial portion of the more than 1.3 million families who have used a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage. The rules were finally changed to resolve this conflict, but navigating them requires careful attention to detail.

Here is what you will learn by reading this guide:

✅ The simple “Yes” or “No” rules for getting a reverse mortgage with an under-62 spouse and the exact steps to ensure they are protected for life.
💰 The precise financial trade-off involved and how a younger spouse’s age directly reduces the amount of money you can borrow, with clear examples.
📜 The critical difference between an “Eligible” and “Ineligible” spouse, and how one simple mistake at loan closing can erase all protections.
⚖️ The landmark court case that forced the government to change the rules and end the crisis of surviving spouses losing their homes.
📋 A step-by-step checklist to follow after the borrowing spouse passes away to secure the home and activate the lifelong deferral period.

The Reverse Mortgage Universe: Deconstructing the Key Players and Rules

A reverse mortgage is a special type of home loan for homeowners aged 62 and older. Instead of you making monthly payments to a lender, the lender makes payments to you, converting your home equity into cash. The loan balance grows over time and generally doesn’t have to be repaid until the last borrower permanently leaves the home.

Nearly all reverse mortgages in the U.S. are Home Equity Conversion Mortgages (HECMs). These are insured by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). This federal insurance is what makes the modern spousal protections possible and legally binding on lenders.

The key players you will interact with are:

The Lender: The financial institution that provides the loan funds.
The Loan Servicer: The company that manages your loan day-to-day. They send you statements and are who your surviving spouse will contact.
HUD-Approved Counselor: A neutral, third-party expert you are required to meet with before you can even apply for a HECM. This counseling session is mandatory for both the borrower and any non-borrowing spouse.

While reverse mortgages are famous for having “no monthly mortgage payments,” this is a dangerous oversimplification. As the borrower, you have three non-negotiable, lifelong duties. Failing to meet even one of these can trigger a loan default and foreclosure.

Your three core responsibilities are:

Pay all property charges on time. This includes property taxes, homeowners insurance, and any HOA fees. This is the single most common reason for reverse mortgage foreclosures.
Maintain the home. The property must be kept in good repair to protect its value as the lender’s collateral.
Live in the home as your primary residence. You must occupy the home for the majority of the year and sign a form each year certifying this.

A Crisis and a Court Case: The History That Forced a Change

Today’s protections for younger spouses were born from a decade of tragedy. Before 2014, the rules created a terrible choice for couples with an age gap. Because the loan amount you could borrow increased with the age of the borrower, couples were often advised to leave the younger, under-62 spouse off the loan entirely to get more money.

This strategy, sometimes pushed by loan officers whose commissions were tied to the loan amount, set a trap. The loan contract stated that the entire balance was due the moment the sole borrower died. This led to a foreclosure crisis, leaving thousands of surviving spouses, like “Sally,” facing eviction from homes they had lived in for decades.

The breaking point was a landmark 2013 court case, Bennett v. Donovan. Surviving spouses sued HUD, arguing that the agency’s own rules violated the very law that created the HECM program. The court agreed, finding that the federal statute intended to protect the “homeowner,” which it defined as including the spouse, not just the person who signed the loan papers.

This ruling declared HUD’s old regulation invalid and forced the agency to create the modern system of protections. The most important date to know is August 4, 2014. HECM loans issued on or after this date have strong, built-in protections for younger spouses.

Eligible vs. Ineligible: The Great Divide in Spousal Protection

Under the new rules, a spouse who is not a borrower on the loan falls into one of two categories: Eligible or Ineligible. The difference between these two statuses is the difference between lifelong security and facing foreclosure.

An Eligible Non-Borrowing Spouse (ENBS) is a spouse who is not a borrower (usually because they are under 62) but who meets a strict set of HUD criteria at the time the loan closes. If the borrowing spouse dies or moves to a care facility for over 12 months, an ENBS can remain in the home for the rest of their life under a “Deferral Period,” as long as they continue to meet the loan’s core responsibilities.

An Ineligible Non-Borrowing Spouse is any spouse who does not meet the strict ENBS criteria at closing. This includes someone who marries the borrower after the loan is already in place. An ineligible spouse has no right to a deferral period. When the borrower dies, the loan becomes due, and the ineligible spouse must repay the loan in full or lose the home.

The Unforgiving Checklist: How to Secure “Eligible Non-Borrowing Spouse” Status

To ensure the under-62 spouse is fully protected, you must satisfy every single one of these requirements at the time of the loan closing. There are no second chances. Missing even one step will classify the spouse as “ineligible,” voiding all protections.

Here is the official checklist for ENBS qualification for any HECM issued on or after August 4, 2014:

You must be legally married. The couple must be legally married when the loan closes and remain married for the rest of the borrower’s life. If you get divorced, the ENBS status is permanently terminated.
The spouse must be named in the loan documents. The under-62 spouse must be explicitly identified by name as an “Eligible Non-Borrowing Spouse” in the HECM contract. This is not automatic; you must verify it is in the paperwork.
The home must be your principal residence. Both the borrower and the ENBS must live in the property as their primary home at the time of closing and continue to do so.
You must both sign certifications. At closing, both spouses will sign documents certifying their marital status and acknowledging they understand the rights and limitations of the ENBS status.
You must both attend counseling. It is mandatory for both the borrower and the potential ENBS to participate in the HUD-approved counseling session before an application can even be submitted.

Failure to complete this checklist correctly at origination is the most common reason a surviving spouse tragically discovers they are not protected.

The Financial Trade-Off: How a Younger Spouse Shrinks Your Loan

The protection for a younger spouse is not free. It comes with a direct and significant financial trade-off: you will receive less money. This reduction is an actuarial requirement from HUD to account for the longer expected lifespan of the loan.

The total amount of money you can borrow is called the Principal Limit (PL). It is calculated using a formula that includes the home’s value, the interest rate, and the age of the youngest person on the loan. When an ENBS is involved, the calculation must use the age of the younger ENBS, not the older borrower.

The younger the person, the lower the percentage of the home’s value you can borrow. This is because a younger person is statistically expected to live in the home longer, meaning the loan balance will have more years to grow with accruing interest. To protect the FHA insurance fund, HUD requires a smaller initial loan to create a larger equity cushion.

Let’s look at a real-world example. Assume a home is valued at $500,000 and the expected interest rate is 5%.

Scenario	Calculation	Result
Couple Both Age 72 (Co-Borrowers)	$500,000 (Home Value) x 0.62 (Factor for Age 72)	$310,000 in available funds.
Borrower Age 72, Spouse Age 58 (ENBS)	$500,000 (Home Value) x 0.50 (Factor for Age 58)	$250,000 in available funds.

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In this case, the decision to protect the 58-year-old spouse comes at an immediate cost of $60,000 in accessible home equity. This is the core choice every couple with an age gap must weigh: maximizing cash now versus ensuring the younger spouse’s lifelong housing security.

Three Scenarios: From Success Story to Cautionary Tale

Understanding how these rules play out in real life is crucial. Here are the three most common situations couples face.

Scenario 1: The Success Story

John (72) and Mary (58) want to eliminate their mortgage payment to free up cash flow in retirement. They own a home worth $400,000 with a $100,000 mortgage balance. They understand that listing Mary as an ENBS will give them less money, but their top priority is ensuring she can always stay in the home.

Key Decision	Positive Outcome
Attend Counseling Together	Both John and Mary attend the mandatory HUD counseling session. The counselor confirms they understand Mary’s rights as an ENBS and the fact that she will not have access to any remaining loan funds after John’s death.
Structure the Loan Correctly	They work with their lender to ensure Mary is explicitly named as an “Eligible Non-Borrowing Spouse” in all loan documents. The loan amount is calculated based on Mary’s age of 58.
Use Funds Strategically	At closing, the HECM proceeds are first used to pay off the $100,000 mortgage. They take a small amount of cash for home repairs and leave the rest in a line of credit they don’t touch.
Activate the Deferral Period	Ten years later, John passes away. Mary notifies the loan servicer, provides the death certificate, and signs the required certifications. The Deferral Period is activated seamlessly.
Lifelong Security Achieved	Mary continues to live in the home for the rest of her life. She has no access to the remaining line of credit, but she is secure in her home because she continues to pay the property taxes and homeowners insurance on time.

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Scenario 2: The Post-Loan Marriage

David, age 68 and single, takes out a HECM in 2020 to supplement his retirement income. Two years later, he meets and marries Susan, who is 63. They live happily in the home together, assuming Susan is protected because she is now his wife and over the age of 62.

Life Event	Legal Consequence
David Gets a HECM	David is the sole borrower on the loan. At the time of closing, he is unmarried, so no spouse is named in the documents.
David Marries Susan	David marries Susan after the loan has already closed.
David Passes Away	Five years later, David dies unexpectedly. The loan servicer sends a letter stating the reverse mortgage is now due and payable in full.
Susan Discovers Her Status	Susan learns she is an *Ineligible Non-Borrowing Spouse. The ENBS protections only apply to spouses who were married to the borrower at the time the loan was originated*.
Foreclosure and Displacement	Susan is unable to repay the $220,000 loan balance. The lender is forced to initiate foreclosure, and Susan loses the home. The only way to have protected her would have been to refinance the original HECM into a new one with her as a co-borrower.

Scenario 3: The Pre-2014 Nightmare

This scenario illustrates the exact problem the new rules were designed to solve. Robert (75) and Carol (59) got a reverse mortgage in 2012, before the spousal protections existed. To maximize their loan amount, their broker advised them to leave Carol off the loan and even remove her from the property title.

Action Taken (Pre-2014)	Devastating Result
Maximize Loan Proceeds	The loan is placed only in Robert’s name, based on his older age, giving them more cash upfront. Carol is removed from the title to facilitate the loan.
Borrower Passes Away	Robert dies in 2015. The loan contract, which was standard at the time, states the loan is immediately due and payable upon the death of the sole borrower.
Loan Becomes Due	The lender sends a demand letter to Carol for the full loan balance of $180,000.
No Automatic Protection	Because the loan was originated before August 4, 2014, Carol has no automatic right to a deferral. Her only hope is a discretionary option called a “Mortgagee Optional Election” (MOE), where the lender may choose to assign the loan to HUD.
Lender Forecloses	The lender, under no obligation to use the MOE option, decides to enforce the contract and initiates foreclosure. Carol is evicted from her home.

Top 5 Mistakes to Avoid

Getting this wrong can have life-altering consequences. Here are the most common and critical mistakes couples make.

Forgetting About Taxes and Insurance. This is the #1 cause of foreclosure for all reverse mortgages. Many borrowers hear “no monthly mortgage payments” and forget they are still responsible for paying property taxes and homeowners insurance. If you fall behind, the lender can and will foreclose.
Getting Married After the Loan Closes. The ENBS protection is only available to a spouse who was married to the borrower on the day the loan was finalized. Marrying someone with an existing reverse mortgage gives the new spouse zero protection under that loan.
Assuming Protection is Automatic. You must ensure the under-62 spouse is explicitly named as an “Eligible Non-Borrowing Spouse” in the loan documents. Do not take a loan officer’s verbal promise; read the contract and verify it yourself or with an attorney.
Not Planning for Frozen Funds. A surviving ENBS has the right to stay in the home, but they have no access to any remaining funds from the reverse mortgage. If the plan was to use a line of credit to pay for future expenses, that plan will fail. The surviving spouse must be able to afford taxes, insurance, and upkeep on their own.
Ignoring the Counseling Session. The mandatory HUD counseling is not a formality; it is a critical protection. Both spouses must attend and ask questions. This is your best opportunity to get unbiased information about the risks and responsibilities you are about to undertake.

Do’s and Don’ts for Couples Considering a Reverse Mortgage

Navigating this decision requires a clear and shared understanding between partners. Follow these guidelines to ensure you are both protected.

Do’s

Action	Why It’s Important
DO Attend Counseling Together	This is mandatory and ensures both of you hear the same unbiased information about the loan’s lifelong obligations and the ENBS limitations.
DO Discuss Your Primary Goal	Have an honest conversation. Is the goal to get the most cash possible now, or to guarantee the younger spouse can stay in the home forever? This will dictate how you structure the loan.
DO Verify the ENBS Designation	Before signing, physically point to the section in the loan documents where the younger spouse is named as an “Eligible Non-Borrowing Spouse.” Do not sign until you see it in writing.
DO Create a Budget for Property Charges	Make a realistic long-term budget for property taxes, homeowners insurance, and home maintenance. This is the financial responsibility the surviving spouse will inherit.
DO Inform Your Heirs	Talk to your children or other heirs. Explain that you are using a reverse mortgage and how it will impact their inheritance. This prevents confusion and stress after you are gone.

Don’ts

Action	Why It’s a Mistake
DON’T Get Divorced	Divorce immediately and permanently terminates the ENBS status and all associated protections. The loan could become due if the borrowing spouse moves out.
DON’T Rely on Verbal Promises	A loan officer’s verbal assurance means nothing. The only thing that matters is what is written in the final, signed loan contract.
DON’T Forget to Send the Annual Certification	Each year, the loan servicer will send a form to certify that you still live in the home. Failure to sign and return this form can trigger a loan default.
DON’T Assume a New Spouse is Covered	If you get a reverse mortgage while single and later remarry, your new spouse is not protected. You would have to refinance to add them as an ENBS.
DON’T Ignore State Laws	Some states have unique rules. For example, Texas homestead laws have historically required both spouses to be 62 or older, effectively prohibiting the ENBS structure in that state.

Comparing Your Options: Is a Reverse Mortgage the Right Tool?

A HECM with an ENBS is a powerful tool for “aging in place,” but it’s not the only way to access home equity. Consider these alternatives carefully.

| Feature | HECM with ENBS | Downsizing | Home Equity Loan / HELOC | |—|—|—| | Monthly Payment Required? | No (but you must pay taxes & insurance). | No (if new home is owned outright). | Yes (Principal and interest payments are mandatory). | | Upfront Costs | High. Includes origination fees, FHA mortgage insurance, and closing costs. | High. Includes realtor commissions, closing costs on both transactions, and moving expenses. | Moderate. Typically lower closing costs than a HECM. | | Impact on Heirs | Equity is depleted over time as the loan balance grows. Heirs inherit the remaining equity, if any, after the loan is repaid. | Preserves equity in the new, smaller home, which can be passed to heirs. | Equity is preserved as the loan is paid down. Heirs inherit the home along with any remaining loan balance. | | Spousal Protection | Strong. The ENBS is legally protected and can remain in the home for life. | N/A. Both spouses can be on the title of the new, smaller home. | None. The loan must be repaid according to its terms, regardless of who lives in the home. | | Best For… | Couples with an age gap whose primary goal is for the younger spouse to remain in the home for life, and who can manage ongoing property costs without monthly loan payments. | Retirees who are willing to move, want to maximize their cash proceeds, and wish to reduce their home maintenance burden. | Retirees with a stable, sufficient income to handle mandatory monthly payments who need funds for a specific, one-time purpose like a major renovation. |

The Aftermath: A Survivor’s Guide to the Deferral Period

If you are the surviving Eligible Non-Borrowing Spouse, your right to stay in the home is protected, but it is not automatic. You must take specific steps after the borrowing spouse passes away or moves into a long-term care facility for more than 12 months.

Notify the Loan Servicer Immediately. Contact the company that manages the reverse mortgage and inform them of the borrower’s death. They will require a copy of the death certificate.
Provide Required Documentation. You will need to provide proof that you are an Eligible Non-Borrowing Spouse. This typically includes your marriage certificate and identification to prove you are the person named in the loan documents.
Sign the Annual Certifications. You will now be responsible for signing and returning the annual occupancy certification form, confirming that you still live in the home as your primary residence.
Take Over the Lifelong Responsibilities. From this point forward, you are solely responsible for paying all property taxes and homeowners insurance on time and maintaining the property.

As long as you continue to meet these obligations, the loan repayment will be deferred for the rest of your life. If you fail to meet any of these requirements, the deferral will end, the loan will become due, and the lender may begin foreclosure proceedings.

Frequently Asked Questions (FAQs)

Q: Does my under-62 spouse have to be on the home’s title to be an ENBS? A: No. A recent HUD rule change eliminated the requirement for an ENBS to prove they have title to the property. However, having both spouses on the title is still highly recommended for estate planning purposes.

Q: Can my ENBS spouse access the line of credit if I become incapacitated? A: No. Only a named borrower on the loan can draw funds. An ENBS has no legal right to access any loan proceeds, either before or after the borrower’s death.

Q: If my ENBS sells the house after I die, do they keep the extra equity? A: Yes. After the reverse mortgage loan balance is paid off from the sale, any remaining equity belongs to the surviving spouse or other heirs according to the will or state law.

Q: How much less money will we get if my spouse is 20 years younger? A: The reduction will be significant. The exact amount depends on interest rates and HUD’s official tables at the time of your application, but a large age gap can easily reduce your borrowing power by tens of thousands of dollars.

Q: What happens if my ENBS remarries after I die? A: It depends on your loan documents. Some reverse mortgage contracts contain clauses that could terminate the deferral period if the surviving ENBS remarries, so it is critical to check the fine print with an attorney.

Q: Can my children still inherit the house? A: Yes. Your heirs can choose to keep the home by paying off the reverse mortgage loan. They can pay either the full loan balance or 95% of the home’s appraised value, whichever is less.