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The economy has been a bit of a mixed bag recently. Some have struggled to keep up high inflation and high interest rates, while others have benefited from rising stock markets and real estate prices.
If you're someone who hasn't been able to keep up with bills or simply wants to take advantage of higher home values without having to move, you may want to consider accessing your home's value through a reverse mortgage.
With one reverse mortgageyou can receive cash from your home equity without having to pay off the loan right away, often until you move in, although you should look at the details to make sure that you understand it what do you get into
However, a reverse mortgage is usually reserved for older people. So, can you get a reverse mortgage if you're under 62? Here's what you need to know.
Explore the reverse mortgage rates you can qualify for online here.
Can you get a reverse mortgage if you are under 62?
The majority 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 represent the about 90% more of today's reverse mortgage market.” says Jim Milano, member of McGlinchey Stafford.
In some limited cases, however, it is possible to get a reverse mortgage before the age of 62.
Learn more about the benefits of considering a reverse mortgage loan.
Get 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 these programs, lenders must follow any applicable state laws regarding age restrictions for reverse mortgages, and some, but not all, states have such requirements,” says Milano.
Depending on these rules, you may be eligible for a reverse mortgage sooner, depending on what private lenders set for reverse mortgage eligibility.
“For states without a reverse mortgage age limit, it is my understanding that lenders who do private reverse mortgage loans will offer this reverse mortgage to borrowers who are 55 or older,” says Milano.
Qualify before age 62 as a spouse
Another way to get one reverse mortgage if you are under the age of 62 are the spouse of someone who meets this age requirement, even if you are applying for a federally insured reverse mortgage. However, this would not be the same as qualifying for a reverse mortgage on your own.
“In the case of co-ownership, only one owner must be over 62. The owner under 62 can be on the loan but cannot access the equity or receive reverse mortgage advances,” says Michelle White, national expert in mortgages The EC store.
Other home value alternatives to consider
Although there are limited options for get a reverse mortgage before age 62, there are several ways to access your home's value early. Sometimes these alternatives can be similar to reverse mortgages, where you give up the equity in your home but still get to live in it.
For example, you can sell your home to a close friend or family member while still living at home, White says.
Also, consider consulting “an estate planner or attorney to discuss the option of a life estate. This would transfer ownership, but allow the owner to live in the property as a life tenant for the rest of their life, with some limitations,” adds White. .
Or you can choose more traditional home heritage financing that usually requires repayment down the road, rather than letting you wait until you move.
“Alternatives to consider for those who are not eligible for a reverse mortgage before age 62 include exploring personal loans, refinancing payments or discussing potential options with a financial advisor to find the best option for to their situation,” says Christina McCollum, produce market leader. Churchill mortgage.
However, none of these options “offer the different monthly payment that a reverse mortgage would,” McCollum adds.
The bottom line
Get a reverse mortgage before age 62 only occurs in limited circumstances, such as when going through a private lender in some states. However, if you're not eligible for a reverse mortgage, you can still tap into your home's equity, such as through a home equity loan or Home Equity Line of Credit (HELOC).
