Borrowing and Non-Borrowing Spouses on a Reverse Mortgage

A married couple may have a reverse mortgage with only one spouse listed on the property and as the only borrower. The other person not on the loan is listed as a “non-borrowing spouse”.

Remember that reverse mortgages have no payments and the loan is not due until BOTH spouses move out of the house, whether through death, selling the home, or moving into an assisted living facility.  This is a big improvement for the reverse mortgage because, in the past, a non-borrowing spouse was either required to pay off the reverse mortgage or move out.  Now, if only one spouse qualifies for the reverse mortgage, it’s not a problem because the other spouse is able to stay in the home even if they are not on the loan.   A ‘non-borrowing’ spouse may remain in the home, but would not have access to the line of credit if there was one.  

It’s important to make sure that you, your spouse, and your family all understand how a reverse mortgage works. At Origin Title, we’re committed to helping our clients find solutions that work for them.