Many seniors are starting to look at the option of getting a reverse mortgage even before they are of the appropriate age to qualify for a reverse home mortgage loan. (That age is typically 62 although there are some reverse mortgage options out there which are available to slightly younger borrowers.) In many cases, these seniors are part of a couple in which both partners are under the age of 62 but one will be turning that age soon.
One of the things that you can do to get a reverse mortgage in this case is to remove the younger spouse from the deed of the home so that the reverse mortgage loan can be issued only in the name of the older spouse who qualifies to get the loan. This recommendation is often made by aggressive lenders who don't have the borrowers best interests at heart and it is a recommendation that you should be wary of.
There will be some cases in which the best financial move is to get the reverse home mortgage loan at all costs even if it means removing the younger spouse from the deed. However, there are risks involved with doing this so it's something that should be considered carefully. Most couples plan on adding the spouse back on when he or she reaches the age of 62 and can get on the loan. However, a lot can happen between now and then which could jeopardize the younger spouse's ability to remain in the home. Work with a financial advisor to figure out what your options are if only one spouse qualifies to get a reverse home mortgage.
Question of the Day: In what cases should a couple seeking a reverse mortgage loan choose to remove the younger spouse's name from the deed of the house in order to secure the loan?
