Facts Regarding Eligible Surviving Non-Borrowing Spouses On or After August 4, 2014
The Department of Housing and Urban Development (HUD) permits eligible Non-Borrowing Spouses* the opportunity to continue to live in the mortgaged property after the death of the last remaining HECM borrower provided they meet all the established requirements and the HECM is not in default for any other reason (such as failure to pay required property taxes or hazard insurance payments).
HECM's originated on or after August 4, 2014, an Eligible Surviving, Non-Borrowing Spouse* may continue to live in the mortgaged property after the death of the last surviving HECM borrower, if the following conditions are met, and continue to be met:
- The Non-Borrowing Spouse is named in the loan documents as a Non-Borrowing Spouse.
- The HECM cannot be in default (eligible to be called due and payable) for any reason other than the last borrower's death (e.g., failure to pay property taxes or make hazard insurance payments); and
- The borrower and his or her spouse were either:
- Legally married at the time the HECM closed and remained married until the HECM borrower's death.
- Engaged in a committed relationship akin to marriage but were legally prohibited from marrying before the closing of the HECM because of the gender of the borrower and Non-Borrowing Spouse, if the spouses legally married before the death of the borrower and remained married until the death of the borrowing spouse; and
- The Non-Borrowing Spouse* lived in the property at loan closing and continues to live in the property as his or her principal residence; and
- The Non-Borrowing Spouse has (or obtains within 90 days after the death of the last surviving borrower) "good, marketable title" to the property or some other legal right to remain in the property (e.g., executed lease, court order, etc.) for the rest of the Non-Borrowing Spouse's life.
A qualified HECM counselor can assist you with learning more about non-borrowing spouses and other topics related HECM.
HUD sponsors housing counseling agencies throughout the country to provide free or low-cost advice on reverse mortgages, buying a home, renting, default, foreclosure avoidance, or credit issues.
- To find a reverse mortgage counselor near you, search the HECM Counseling Agencies or call (800) 569-4287.
- To find a reverse mortgage counselor that provides telephone and face-to-face counseling nationwide, use the HUD Intermediaries Providing HECM Counseling Nationwide list.
Questions Regarding the Mortgage on the Mortgaged Property
If you have any questions regarding non-borrowing spouses, the mortgage on the mortgaged property, including questions about non-borrowing spouse rights and responsibilities, you are strongly encouraged to contact the servicer of the property.
Non-Borrowing Spouse means the spouse, as determined by the law of the state in which the spouse and Borrower reside or the state of celebration, of the Borrower at the time of closing and who is not a Borrower of the HECM loan.
Eligible Non-Borrowing Spouse means a Non-Borrowing Spouse who meets, and continues to meet, the Qualifying Attributes requirements established by the Secretary of HUD, or authorized representatives, that the Non-Borrowing Spouse must satisfy to be eligible for deferral of the due and payable status.
Ineligible Non-Borrowing Spouse means a Non-Borrowing Spouse who does not meet the Qualifying Attributes requirements established by the Secretary of HUD, or authorized representatives, that the Non-Borrowing Spouse must satisfy to be eligible for deferral of the due and payable status.
Qualifying Attributes means those requirements established by the Secretary of HUD, or authorized representatives, that the Non-Borrowing Spouse must satisfy to be eligible for deferral of the due and payable status.