Reverse Mortgage At Age 58 and Age 59 Program – Brand New for 2021

Reverse Mortgage at Age 58 Program
Reverse Mortgage at Age 58 Program

Since roughly 2009 reverse mortgages could only be taken out by older homeowners age 62 plus.  There is a new program that is currently only offered by one investor or lender that allows 58 and 59 year olds to do a reverse mortgage loan.  In 2018 the reverse mortgage at age 60 program was released and we were pleased to be one of the first websites to talk about it an promote it. 

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***Note, as of 09/03/2021 there is now a Reverse Mortgage at Age 55 Program.

What Exactly is a Reverse Mortgage?


Simply put, are reverse mortgage is a special type of loan that has a minimum age requirement as the point of entry.  Generally, that age requirement is age 62 and that’s still the case with the FHA reverse mortgage program. Aside from that, there are equity requirements and they do tend to be a little more conservative than the FHA program. 

Reverse Mortgage at Age 58 Questions and Answers

The best feature of a reverse mortgage for most people is that the homeowner can choose how they pay the loan back.   In other words, they don’t have to make a monthly mortgage payment for as long as they live or for as long as they live in their home.  Since they still own the home however, they do need to maintain property taxes, insurance, and HOA dues.

Question:  Does this program for 58 and 59 year olds have a minimum credit score requirement?

Answer:  No, there is not a minimum credit score requirement.  The underwriter looks at the credit  as a whole and they pay particular attention to how housing expenses and installment payments are managed.

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Question: What type of properties are eligible for the reverse mortgage for 58 and 59 year olds?

Answer: This loan program can be done on almost any type of owner occupied property except coops and manufactured homes. In other words, sfr’s, townhomes, condos, & modular homes are eligible.

Question: Is there a minimum loan amount?


Answer: Yes, there is a minimum loan amount for the reverse program for 58 year olds.  It’s set at $150,000.

Question: Is there a maximum loan amount for the reverse at 58 program?

Answer: The maximum loan amount is currently set at $6,000,000.  That said, loan amounts above $4,000,000 require approval of senior management personnel with the investor.

Question: Can this loan program be done all over the USA?

Answer: No, This loan has state limitations right now. The loan program as a whole can be done at at 58 and 59 in the following states; CA, CO, CT, DC, DE, FL, MD, NC, NJ, NV, NY, OR, PA, SC, TX, VA, & WA. However, the minimum age in TX is 62 and 60 in NY. All the other states mentioned allow for this program starting at age 58 and there is no maximum age cap.

Question: What portion of the appraised value can I borrow?

Answer: At age 58 you can borrow anywhere from 29.2% of the appraised value to as much at 40.1% of the appraised value. As with all reverse mortgage programs, the amount you can borrow increases a LITTLE be with every passing year. At age 59 the range is 30.2% to 41.1%. Again, it increases just a little bit every year. For example, on the other side of the spectrum a person qualifies for the max at age 88+. At age 88 and beyond you can borrow as much as 51.2% to 62.3%.

two thumbs up for the new reverse mortgage at age 59 program
Reverse Mortgage at Age 59 Program

Question: What kind of interest rates can I expect with the reverse mortgage at age 58 program?

Answer: The interest rates are very low. They are not as low as conventional mortgage rates, but they are good. The range is 4.9% to 7.1%. Some might think this is high, but historically it’s pretty good. Especially for jumbo reverse or proprietary reverse mortgages. If you rewind to about 2009-2013 or 2014, there was really only one investor offering jumbo or non-FHA reverse loan. The rates charged on those programs were 8.875%.

Question: Is this a non recourse loan?

Answer: Yes, similar to the FHA option, the reverse mortgage at age 58 program is a non recourse loan. However, the fees are much lower than the FHA versioni.

Question: Does the bank own the home if I do this type of home loan?

Answer: You still own the home if you elect to do the reverse mortgage at age 58 or 59. This means you can still sell your home and / or you can still leave the home to whomever you wish.