For the Non-Borrowing Spouse in a Reverse Mortgage there are important protections in place. In this interview, Kim Dodge, of Usher Financial Group talks with Des Lenz, Director, at American Pacific Reverse Mortgage Corporation. The topic is on the benefits and protections for the reverse mortgage borrowers called the Non-Borrowing Spouse Rules.
The Bureau of Housing and Urban Development (HUD) have instituted a lot of changes to the Reverse Mortgage. These changes have increased the protections for borrowers, and the Non-Borrowing Spouse Rule is one of them. “Reverse Mortgages have evolved over time to meet the needs of today’s homeowners.” Says Kim.
Non-Borrowing Spouse Rules:
– The non-borrowing spouse is married to the borrower at the time of the loan closing (and remains married to the borrower for the duration of the borrower’s lifetime) – The non-borrowing spouse does not have to be 62 or older| – Their spousal status is disclosed at the time of the closing| – The non-borrowing spouse is named in the loan documents – The non-borrowing spouse has occupied, and continues to occupy, the property – The non-borrowing spouse establishes legal ownership within 90 days of the death of the last surviving borrower – The non-borrowing spouse meets all of the obligations described in the loan documents.
“A Reverse Mortgage is not for everyone, but it should be looked at as an option for one’s retirement planning.”