Yes, you can still get a reverse mortgage, but to do so your spouse will have to be removed from the title of the property. He/she 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 must pay off the reverse mortgage either through sale of the property, using savings, or by obtaining his/her own reverse or traditional 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 2-4 unit properties (you live in one unit and rent the others). 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.
A reverse mortgage comes due when under the following conditions:
When the reverse mortgage becomes due there are two options for paying it off.
Like all loans a reverse mortgage does carry conditions in order to remain valid. Below is a list of reasons for which a borrower would find themselves in default.