Recently, one of the inquiries we received in Portland was about this: the house documents only list the husband's name, and the wife is over 62 years old, but the husband is still 59. Can they apply for a reverse mortgage? Questions like this come up more often than you might think. So today, we'll start with this question and go through the basic structure of reverse mortgages and what to consider when applying in the Portland area.

First, to clarify what a reverse mortgage is, it is a product that allows homeowners aged 62 and older to borrow against the equity of their home. Unlike a traditional mortgage, where payments are made monthly, funds are received from the lender in a lump sum, monthly payments, or a line of credit, and the principal and interest are repaid when the home is sold, the owner passes away, or the home is no longer used as the primary residence. The most common product is the HECM (Home Equity Conversion Mortgage), which is insured by the Federal Housing Administration (FHA) and is the only type guaranteed by the federal government.

So, what is the answer to the earlier question? HECM applications are generally made in the name of the homeowner who is at least 62 years old, and if the spouse is under 62, they will be listed as a non-borrowing spouse. In this case, even if the borrower passes away first, there are protections in place that allow the spouse to continue living in the home, provided certain conditions are met. However, the specific conditions can vary by individual situation, so it is essential to confirm this with a HUD-approved counselor.

What is the housing market like in Portland? According to Zillow, the average home value is $534,270 (as of July 31, 2026, a 0.1% decrease over the past year), and the median sale price according to Redfin is around $535,000. These figures can give you an idea of the equity available, but keep in mind that the actual loan limits will vary based on age, interest rates, and appraisals.

So, what are the costs involved? The origination fee, initial mortgage insurance premium (MIP) of about 2%, and an additional insurance premium of around 0.5% per year, along with closing costs, make the initial costs higher than a traditional mortgage. Property taxes are also an ongoing consideration. The effective property tax rate in Multnomah County is about 0.98% (for 2025-2026), with the median homeowner paying approximately $5,539 annually. Even with a reverse mortgage, the obligation to pay property taxes and insurance remains, so you must pass a financial assessment to ensure you can continue to manage these payments.

Here are some pros and cons to consider:

• You can secure cash flow for living expenses or medical costs without monthly repayment obligations.
• It is a non-recourse loan structure, so if the home value falls below the loan balance, heirs are not required to pay the difference.
• However, over time, the equity in the home may decrease, reducing the assets passed on to children.
• If property taxes or insurance premiums are not paid, there is a risk of default.

One more point to note is that interest accumulates on the loan balance each month. Since there are no payments, the balance grows over time, and the remaining equity decreases accordingly. After the owner passes away, heirs can choose to sell the home to settle the loan, buy it at the lower of 95% of the appraised value or the loan balance, or transfer the home. Decisions must be made within a specified timeframe, so it is advisable to discuss this with family beforehand.

In Oregon, 19.9% of the population is over 65 (as of 2024), which is higher than the national average of 18%, and the proportion of retirees is steadily increasing. While inquiries about reverse mortgages are rising, it is also important to remember that there have been reports of scams targeting the elderly. HECM applications must go through mandatory counseling with a HUD-approved agency, and it is crucial to calmly verify whether the program fits your situation. We hope you discuss this thoroughly with your family before making a decision, and please note that this article does not constitute investment or legal advice; we recommend consulting a professional before entering into any contracts.