Yes, you can still get a reverse mortgage, but your calculated benefit amount will be based on your spouse’s age, so will be less than if you were the sole applicant. While your spouse would not be a borrower on the loan, he/she will remain on the property title and will be required to go through the credit counseling process even though he/she will not be part of the loan contract. In this situation it is important to realize that if something happens to the older spouse the surviving non-borrowing spouse will be allowed to remain in the home without making mortgage payments, but may not draw any additional benefits unless he/she obtains her own reverse mortgage.
Your benefits will be calculated based on the age of the younger homeowner. If something happens to either homeowner after the reverse mortgage is obtained the surviving homeowner may remain in the home with the same loan for as long as he/she wishes.
Reverse mortgages are “non-recourse” loans, meaning that you are not responsible for any balance that exceeds the value of the home. If this occurs there will be no negative ramifications for your credit history.
Reverse mortgages can be obtained on owner-occupied 1-4 unit properties. If any part of your home is commercial (a mixed use property with a retail space, for example), the property is not eligible for a reverse mortgage. Informal room rent situations generally will not disqualify a home from eligibility for a reverse mortgage.
The very nature of a reverse mortgage can be confusing. With a reverse mortgage lenders pay you either monthly or with one lump sum. The following lists provide information regarding repayment of a reverse mortgage.