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Reverse mortgage guide
A non-borrowing spouse is married to a reverse mortgage borrower but isn't on the loan, usually because they're younger than 62. On a HECM, an eligible non-borrowing spouse can generally keep living in the home after the borrower dies or moves into long-term care, through what HUD calls a deferral period. To keep that protection, they must stay married to the borrower, keep living in the home, and continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. An ineligible spouse doesn't get the deferral, so the loan can come due when the borrower dies. HUD has changed these rules several times since 2014, so the date your loan's case number was assigned matters.
When a couple has a reverse mortgage and one spouse isn't on the loan, the question that matters most is simple: what happens to that spouse if the borrower dies or moves into care?
The answer depends on whether the spouse is "eligible" or "ineligible" under HUD's rules, and on when the loan was made. This guide covers both, in plain English, along with the HUD changes since 2014 and how to plan if one of you is under 62.
These rules are for the HECM, the FHA-insured reverse mortgage most people get. Proprietary (jumbo) reverse mortgages set their own spouse rules, so I always check them in writing.
A non-borrowing spouse is legally married to a reverse mortgage borrower but isn't a borrower on the loan. They don't sign the note, and they can't draw money from the loan.
The most common reason is age. On a HECM, every borrower must be at least 62. If one spouse is 70 and the other is 59, only the 70-year-old can be the borrower.
Some couples also choose to leave a spouse off the loan for other reasons. Before you decide that, make sure you understand what it means for the spouse later.
On a HECM with a case number assigned on or after August 4, 2014, an eligible non-borrowing spouse generally:
When the borrower dies, an eligible spouse certifies to the servicer that they're still married, still living in the home, and that all other loan terms are being met.
For a short answer, see What is an eligible non-borrowing spouse?
An ineligible non-borrowing spouse is married to the borrower and identified at closing, but doesn't meet the requirements above. The most common reason is that the spouse doesn't live in the home as their primary residence. Both spouses sign certifications at closing, and the ineligible spouse's age isn't used in the math.
A spouse who marries the borrower after the loan closes is a different case. They weren't identified at closing, so they don't get the deferral period either.
An ineligible spouse doesn't get the deferral period. When the last borrower dies, the loan generally comes due, and the spouse would need to repay it, usually by refinancing or selling, to keep the home.
See What is an ineligible non-borrowing spouse?
| Question | Eligible non-borrowing spouse | Ineligible non-borrowing spouse |
|---|---|---|
| Who it is | Married to the borrower at closing, named in the loan documents, and living in the home as their primary residence | Identified at closing but doesn't meet the requirements, most often because they don't live in the home |
| Age used in the loan math | Yes, which lowers the amount available | No |
| Counseling | Must attend | Must attend |
| If the borrower dies | Deferral period: the spouse can generally stay as long as the requirements are met | The loan comes due, and the heirs' timeline applies |
| If the borrower is in a care facility 12+ months in a row | Deferral can apply for case numbers assigned on or after August 4, 2014 | The loan can come due |
| Money during the deferral | No more money is paid out | Not applicable |
| Ongoing obligations | Continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms | Not applicable |
Normally, a HECM becomes due when the last borrower dies. With an eligible non-borrowing spouse, the loan enters a deferral period instead. The lender doesn't call the loan due, and the spouse can keep living in the home.
During the deferral period:
The deferral ends when the spouse dies, moves out for good, or stops meeting the requirements. Then the loan comes due, and the rules for heirs apply. See Reverse Mortgages and Heirs.
More detail: How does an eligible non-borrowing spouse qualify for the deferral period?
A HECM can generally become due if the borrower lives in a health care facility, like a nursing home, for more than 12 consecutive months. That used to put a non-borrowing spouse at risk even while the borrower was still alive.
HUD fixed that in 2021. For loans with case numbers assigned on or after August 4, 2014, the due date can be deferred when the borrower has been in a health care facility for more than 12 consecutive months, as long as the home stays the eligible spouse's primary residence and the other requirements are met.
For loans with case numbers assigned before August 4, 2014, there's no deferral, but the same 2021 change lets the lender use an MOE assignment in this situation, at its option.
An eligible spouse can lose the protection by:
The rules for non-borrowing spouses have changed a lot. Here are the big moments. For the full program history, see HECM Program Changes by Year.
A spouse who wasn't on the loan had no special protection. When the borrower died, the loan came due, and the surviving spouse often had to pay it off or move.
Mortgagee Letter 2014-07 created the deferral period for eligible non-borrowing spouses on HECMs with case numbers assigned on or after August 4, 2014. It also made the eligible spouse's age part of the math, which lowers the amount available but protects the spouse.
For loans from before August 4, 2014, HUD created the Mortgagee Optional Election (MOE) assignment in 2015. At the lender's option, it lets the lender assign the loan to HUD so a qualifying surviving spouse can stay. In 2019, Mortgagee Letter 2019-15 removed several deadlines and the requirement that the spouse show good and marketable title or a legal right to stay in the home for life.
Mortgagee Letter 2021-11:
Mortgagee Letter 2023-23 set out how servicers confirm a spouse's status each year, including that the certification can be verbal and that the servicer may ask for a divorce decree if there's a divorce.
If your HECM's case number was assigned before August 4, 2014, the 2014 deferral rules don't apply automatically. But a surviving spouse may still be able to stay through a Mortgagee Optional Election (MOE) assignment, where the lender assigns the loan to HUD at the lender's option. The lender doesn't have to choose it, and the loan can't be in default for another reason, like unpaid property taxes.
The spouse generally must have been married to the borrower when the loan closed (or meet the expanded definition above), lived in the home, and continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. If this is your situation, call your servicer right away and ask about MOE. I'm glad to help you figure out what to ask.
The younger spouse can be an eligible non-borrowing spouse, as long as they meet HUD's requirements. They're protected, but their age is used in the math, so you'll have less money available than if you were both older. And no more money is paid out after the borrower dies.
Waiting until the younger spouse is older usually helps, because age is part of the math, but it isn't guaranteed. Interest rates, your home's value, and HUD's tables can change too. Once the younger spouse turns 62, you can both be borrowers. Waiting can make sense if you don't need the money now.
Some proprietary programs accept borrowers younger than 62 in some states. For example, Finance of America's HomeSafe Standard accepts borrowers 60 and older in Washington. In Texas, HomeSafe Standard requires borrowers to be 62, and the Texas Constitution requires the borrower or the borrower's spouse to be at least 62. If both of you can be borrowers, the younger spouse can keep drawing money after the older spouse dies. These programs have their own costs and rules, so I'd compare them side by side with a HECM. See Proprietary (Jumbo) Reverse Mortgages.
Once the younger spouse turns 62, you may be able to refinance into a new HECM with both of you as borrowers. That has costs, so it's worth running the numbers. See Reverse Mortgage Refinance.
The deferral protects the home. It doesn't protect income. Here's how I help couples plan for that:
These are simple illustrations, not real clients.
A couple, ages 72 and 60. The 72-year-old is the borrower, and the 60-year-old is named as an eligible non-borrowing spouse. When the borrower dies, the spouse stays in the home under the deferral period, keeps paying taxes and insurance, and can't draw more money. The loan comes due when the spouse dies or moves out.
A borrower who remarries after closing. The new spouse wasn't part of the loan at closing, so they don't get the deferral period. When the borrower dies, the loan comes due. The spouse can sell the home or refinance it to stay, using the normal timeline for heirs.
A couple from a 2012 loan. The husband dies. The wife wasn't on the loan. She contacts the servicer, who looks at whether to assign the loan to HUD through an MOE assignment so she can stay. That's the lender's choice, so she should ask early.
For both to be borrowers on a HECM, yes. A younger spouse can be an eligible non-borrowing spouse instead. Some proprietary programs have lower age minimums in some states.
Not to the same loan. Once your spouse turns 62, you may be able to refinance into a new HECM with both of you as borrowers.
A spouse you marry after closing wasn't identified when the loan closed, so they don't get the deferral period. If keeping the home matters, talk with your loan officer about refinancing options once you're married.
If the surviving spouse is eligible, the loan enters the deferral period, and they can generally stay as long as they meet the requirements. If not, the loan comes due.
No. No money is paid out during the deferral period.
Yes. HUD requires a non-borrowing spouse to receive counseling along with the borrower. It's where you both hear, from someone independent, exactly what happens to the spouse later. See Reverse Mortgage Counseling.
No. A co-borrower is on the loan and can receive money from it. A non-borrowing spouse isn't on the loan and can't draw money from it, but an eligible one has the protections above.
When the loan finally comes due, the rules for heirs apply. They can sell, keep the home by paying off the loan, or hand it over, and they don't owe more than the home is worth. See Reverse Mortgages and Heirs.
If one of you is under 62, the best thing you can do is look at real numbers both ways. Get your estimate or call us at 530-888-6000. I'm glad to sit down with both of you.
ZYNG Mortgage, Inc., NMLS #76801. A reverse mortgage has no required monthly mortgage payments and uses your home's equity. Fees, mortgage insurance and other costs can be added to the loan balance, and the balance grows over time as interest is added, so your equity typically decreases. When the loan becomes due, the home may need to be sold, or the loan repaid from other funds. Interest is not tax-deductible until it is paid, in part or in full. You keep title to your home and must keep paying property taxes, homeowners insurance and upkeep, and meet the other loan terms; not doing so can make the loan due and could lead to foreclosure.
This material is not from HUD or FHA and was not approved by HUD or a government agency.
An eligible non-borrowing spouse is married to a HECM borrower, isn't on the loan (usually because they're under 62), and lives in the home. If the borrower dies or moves into long-term care, the loan's due date can be deferred, so the spouse can generally keep living there. To keep that protection, they must stay married to the borrower, keep living in the home, and continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms. The tradeoffs are that the younger spouse's age lowers how much money is available, and no more money is paid out after the borrower dies.
An ineligible non-borrowing spouse is married to a HECM borrower but isn't on the loan and doesn't meet HUD's requirements for the deferral period, most often because they don't live in the home as their primary residence. Their age isn't used to figure how much money is available, which can mean more money at closing. The tradeoff is real: they have no protected right to stay in the home, and the loan can come due when the last borrower dies or moves out. Both spouses sign a certification at closing saying they understand this.
HECM count at the top of this page: HUD data through September 2026 (source, opens in a new tab).
