Can you get a reverse mortgage before 62?

Can you get a reverse mortgage before 62?

Sometimes, yes. The federally insured reverse mortgage, called a HECM (Home Equity Conversion Mortgage), requires the youngest borrower to be at least 62 when the loan closes. That rule is set by federal regulation and doesn't change by state. But private reverse mortgages, also called proprietary reverse mortgages, are a different story. Depending on the state and the program, some are available starting at age 55.

So if you're between 55 and 61, the honest answer is: a HECM isn't an option yet, but a private reverse mortgage might be, depending on where you live and what your home is worth.

What kinds of reverse mortgages can start at 55?

Private reverse mortgages come in a few forms. The two you'll hear about most:

• A private (proprietary) first-lien reverse mortgage. It works much like a HECM: it pays off any existing mortgage and you make no required monthly mortgage payment. These are often used for higher-value homes, since they aren't tied to the federal lending limit.
• A second-lien reverse mortgage. This one sits behind your current mortgage, so you can keep your existing loan and its rate. You keep making that payment, and the reverse mortgage gives you access to additional equity. We explain how it works in Love your low mortgage rate? You may not have to give it up.

Both are offered by private lenders, not the federal government, so the rules come from the lender's program and state law rather than from HUD.

Does it depend on your state?

Yes, a lot. Private reverse mortgages are only offered in some states, and minimum ages vary. A few examples of how state law shapes this:

• Texas defines a reverse mortgage in its state constitution as a loan made to a person who is, or whose spouse is, 62 or older. So in Texas, 62 is the floor for any reverse mortgage.
• Utah changed its law to lower the minimum age for private reverse mortgages to 55.
• Some other states set the minimum somewhere in between, and some states don't have private programs available at all.

Because availability changes, the only reliable way to know is to ask a licensed professional which programs are offered for your state and age right now.

What's different about borrowing younger?

The biggest difference is how much you can get. Reverse mortgages are sized partly by the age of the youngest borrower. The younger you are, the longer the loan is expected to last, so lenders generally make a smaller share of your home's value available. A 56-year-old will usually be able to borrow less than a 75-year-old with the same home.

A few other trade-offs to weigh:

• More years for the balance to grow. Interest and fees are added to the loan over time. Starting at 55 gives the balance more years to build, which can leave less equity for later or for heirs.
• No federal insurance. Private reverse mortgages aren't insured by the government. Many lenders copy key HECM protections, such as required counseling. Others, like a promise that you'll never owe more than the home is worth, vary by program, so confirm them in writing for any loan you consider.
• Using it up too soon. Consumer regulators have warned that people who start a reverse mortgage at a young age risk running through the money before they need it most.

What if one spouse is 62 and the other isn't?

This is a very common situation. With a HECM, the spouse who is 62 or older can be the borrower, and the younger spouse can be listed as an "eligible non-borrowing spouse." That status can let the younger spouse stay in the home if the borrowing spouse dies, as long as HUD's conditions are met. The amount available is based on the younger spouse's age, so it will be smaller.

With some private programs, both spouses can be borrowers if both are at least the program's minimum age (55 in many states). Ask how each option protects the younger spouse, because this is where the details matter most.

Who it may fit, and when to wait

Borrowing before 62 can make sense for someone with a lot of home equity and a clear, specific need, such as eliminating a mortgage payment to ease a tight retirement budget, or keeping a low-rate first mortgage while adding a line of credit. It's often less of a fit if:

• You could comfortably wait a few years and qualify for more, or for a HECM.
• A HELOC, a home equity loan, or downsizing would cover the need at lower long-term cost.
• You aren't planning to stay in the home for many years.

To see a rough range for your home, try our reverse mortgage calculator, which includes a second-lien estimate for ages 55 and up. You can also compare programs on Your Options.

Questions to ask before you decide

• Which programs are available in my state at my age today?
• How much could I get now, and how much more if I waited until 62?
• Is this a HECM or a private program, and which HECM-style protections does it include?
• Will I ever owe more than the home is worth? Is that in writing?
• How is my younger spouse protected if I die or move out?
• What would a HELOC or another option cost me instead?