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Can you get a reverse mortgage if you’re younger than 62?
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The economy has been somewhat of a mixed bag recently. Some have struggled to keep up with high inflation and high interest rates, while others have benefitted from a rising stock market and real estate prices.
If you’re someone who hasn’t been able to keep up with bills or who simply wants to take advantage of higher home values without having to move, you might consider accessing your home equity via a reverse mortgage.
With a reverse mortgage, you can receive cash from your home’s equity without having to pay back the loan right away — often until you move, though you should look into the details to make sure you understand what you’re getting into.
However, a reverse mortgage is typically reserved for seniors. So can you get a reverse mortgage if you’re under the age of 62? Here’s what to know.
Explore the reverse mortgage rates you may qualify for online here.
Can you get a reverse mortgage if you’re younger than 62?
Most reverse mortgage age requirements include that the borrower is at least 62 years old. But this reverse mortgage age limit applies to federal loans.
“The predominant reverse mortgage program, the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) program, requires borrowers to be 62 years of age. FHA-insured HECMs make up about 90%+ of the reverse mortgage market today,” says Jim Milano, member, McGlinchey Stafford.
In some limited cases, however, it’s possible to get a reverse mortgage before age 62.
Find out more about the benefits of considering a reverse mortgage loan.
Getting a private reverse mortgage before age 62
One way to qualify for a reverse mortgage before age 62 is to use a privately insured reverse mortgage program in some states.
“Under those programs, lenders must follow any applicable state law on age restrictions for reverse mortgages, and a few states, but not all states, have such requirements,” says Milano.
Depending on those rules, you might be eligible for a reverse mortgage sooner, based on what private lenders set for reverse mortgage eligibility.
“For states without a reverse mortgage age limit, I understand that lenders making private reverse mortgage loans will offer such a reverse mortgage to borrowers who are 55 years of age or above,” says Milano.
Qualifying before age 62 as a spouse
Another way to get a reverse mortgage if you’re younger than age 62 is to be the spouse of someone who does meet this age requirement, even if filing for a federally insured reverse mortgage. Yet, this wouldn’t be the same as qualifying for a reverse mortgage on your own.
“In the case of joint ownership, only one owner has to be over 62 years old. The owner under 62 can be on the loan but cannot access the equity or take advances on the reverse mortgage,” says Michelle White, national mortgage expert, The CE Shop.
Other home equity alternatives to consider
While there are limited options for getting a reverse mortgage before age 62, there are several ways to access your home equity earlier. Sometimes these alternatives can resemble reverse mortgages, where you give up equity in your home but can still live there.
For example, you might sell your home to a close friend or family member while still living in the home, says White.
Also, consider consulting “an estate planner or attorney to discuss the option of a life estate. This would transfer ownership but allow the homeowner to live in the property as a life tenant for the remainder of their life, with some limitations,” White adds.
Or you might choose more traditional home equity financing that typically requires repayment along the way, rather than letting you wait until you move.
“Alternatives to consider for those ineligible for a reverse mortgage before age 62 include exploring personal loans, cash-out refinancing, or discussing potential options with a financial advisor to find the best fit for their situation,” says Christina McCollum, producing market leader, Churchill Mortgage.
However, none of these options “offers the differed monthly payment like a reverse mortgage would,” McCollum adds.
The bottom line
Getting a reverse mortgage before age 62 typically only occurs in limited circumstances, such as when going through a private lender in some states. If you’re not eligible for a reverse mortgage, however, you still can tap into your home equity such as through a home equity loan or home equity line of credit (HELOC).
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.