Does having a reverse mortgage impact who can live in my home?

Having a reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), does not change who can live with you in your home, but if you die or move out of the home (including moving for medical reasons for more than 12 consecutive months), the HECM loan becomes due. This means that you and your family members or heirs will need to pay off the reverse mortgage in order to stay in the home.

The exception is if you co-borrow your HECM with your spouse (or anyone else). In this case, your co-borrower can stay in the home even if you die or move out of the home. If your spouse is not a co-borrower on the reverse mortgage, but was married to you at the time you took out the reverse mortgage, your spouse may be able to remain in the home without paying the loan balance after you die or move into a health care facility for more than 12 consecutive months if your spouse qualifies under the Department of Housing and Urban Development (HUD)'s rules . For example, from the time you get the reverse mortgage, your qualifying non-borrowing spouse must continue to live in the house as their principal primary residence.

Children, relatives, or other dependents who are not co-borrowers on the reverse mortgage, or spouses who do not qualify as an Eligible Non-Borrowing Spouse under HUD’s rules will have the option to pay off the HECM loan balance in order to remain in the home, which must be paid off with another source of funds.

Get help

Before you apply for any reverse mortgage loan, you and your spouse or partner work with a HUD-approved housing counselor to help you decide if a reverse mortgage is right for you. To find a HUD-approved reverse mortgage (HECM) counselor visit CFPB’s Find a housing counselor page,or call HUD's talk to housing counselor referral line at (800) 569-4287.

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