When you imagine your golden years, you likely picture staying in your cherished home—together with your partner. For couples considering a reverse mortgage, one of the most pressing concerns is often, “What happens to my partner if I pass away first?”
Let’s unravel the love story within reverse mortgages: spousal protections. Whether your spouse is a co-borrower or a non-borrowing spouse, reverse mortgages offer safeguards to help ensure your partner can remain in the home, preserving the life you built together.
Understanding Spousal Protections in Reverse Mortgages
A Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage, is a loan designed for homeowners aged 62 and older. It gives you the power to access a portion of your home equity while staying in the home you love. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.
But what happens to your partner if you’re the primary borrower? This is where spousal protections come into play, ensuring that your spouse—whether they’re a co-borrower or a non-borrowing spouse—can remain in the home.
For spouses listed as co-borrowers, the process is simple. They retain the full right to remain in the home as long as they continue to meet loan obligations.1
Non-borrowing spouses, however, bring a unique situation. Perhaps your partner doesn’t meet the minimum age requirement of 62 or was not added as a borrower during the loan’s origination. To address these scenarios, the U.S. Department of Housing and Urban Development (HUD) has established important protections to ensure that eligible non-borrowing spouses aren’t forced to leave their home if the borrowing spouse passes away or moves into a long-term care facility.
Protections for Non-Borrowing Spouses
For non-borrowing spouses, reverse mortgages offer a lifeline of security—but eligibility is key. To qualify as an eligible non-borrowing spouse, your partner must have been married to you when the loan was originated, with the marriage continuing until your passing or departure from the home. And equally as important, the home must also remain their primary residence throughout the duration of the loan.
So, what happens when the borrowing spouse is no longer in the picture? Typically, a reverse mortgage becomes due at that point. However, HUD’s spousal protections help ensure an eligible non-borrowing spouse isn’t left scrambling to find a new home. Instead, they are allowed to stay right where they are, provided they fulfill the loan requirements.
Of course, these protections come with some responsibilities. In addition to living in the home as their primary residence, the non-borrowing spouse must continue to meet the reverse mortgage obligations—such as paying property taxes, maintaining homeowners insurance, and keeping the home in good condition. While they won’t have access to any remaining loan funds, their right to remain in the home they’ve shared with you is firmly safeguarded.
Non-Borrowing Spouses: FAQs
- What if my spouse isn’t 62 yet?
It’s not uncommon for one spouse to be younger than 62, the minimum age for reverse mortgage borrowers. In this case, the younger spouse can be designated as a non-borrowing spouse, allowing them to benefit from these protections as long as they qualify. However, keep in mind that the loan amount may be based on the younger spouse’s age to ensure sufficient equity remains in the home. - What happens if I need to move to assisted living?
If you (the borrowing spouse) no longer occupy the home as your primary residence, the loan may become due. However, an eligible non-borrowing spouse can still remain in the home under the spousal protections.
The Importance of Proper Planning
Reverse mortgages provide a unique opportunity to tap into home equity while maintaining your lifestyle during retirement. But it’s vital to understand how spousal protections work and what’s required to safeguard your partner’s future. Planning ahead and understanding the loan’s terms can help couples make the most of this powerful financial tool with confidence and peace of mind.
Consulting a licensed reverse mortgage professional and a HUD-approved counselor is a crucial step in understanding your spouse’s rights and protections to the fullest. With the right guidance, you can confidently create a plan that works for your shared future.
A Commitment to Together Forever
A home is more than just walls and a roof—it’s where your memories are made, your milestones celebrated, and your dreams nurtured. Reverse mortgages recognize this, offering a way to preserve the sanctuary you’ve built together, even when life takes unexpected turns. For couples considering this option, a reverse mortgage provides not only financial flexibility but also the reassurance that your home remains a lasting testament to the life you’ve shared.
At Longbridge Financial, we understand the deep emotional connection you have to your home, which is why we believe in the Power of Home®. Our mission is to empower homeowners by providing the tools and education to make informed decisions about their financial future. We’re not just here to offer reverse mortgages—we’re here to help you determine if they’re the right fit for you.
We’ve helped countless homeowners and their families unlock their home equity for financial peace of mind, and we’re ready to do the same for you. Contact us today, and let’s explore how a reverse mortgage can help you achieve your goals—together.
