One spouse has turned 62. This was one of the inquiries received from Gaithersburg. The husband has reached the qualifying age, while the wife still has a few years left, and they were curious about what would happen to the wife if they applied for a reverse mortgage.

First, it should be noted that a spouse under 62 cannot be listed as a co-borrower on the loan. Instead, if registered as a non-borrowing spouse, there is a protection mechanism that allows them to continue living in the home even if the borrower passes away, provided certain conditions are met. However, these conditions are detailed, so it is essential to verify them accurately before applying.

A reverse mortgage is a product that allows homeowners aged 62 and older to receive funds using their home equity as collateral. A typical form is the HECM (Home Equity Conversion Mortgage) insured by the Federal Housing Administration (FHA), which provides funds in a lump sum, monthly payments, or a line of credit, unlike a traditional mortgage that requires monthly repayments.

The average home value in Gaithersburg is $494,924 (Zillow, up 1.3% from the previous year). The available funds are not based on the full equity but rather on a percentage determined by age, interest rates, and home value. It is often calculated based on the younger spouse's age, which may result in a lower available amount than expected.

The younger spouse theoretically has the option to reapply separately once they reach 62. However, if home values and interest rates change in the meantime, the conditions may also change, so whether it is advantageous to apply now or wait varies by situation.

The average effective property tax rate in Maryland is around 1.00% (based on a median home value of $397,700, resulting in an annual property tax of $3,989, propertytaxrates.org). Even after obtaining a reverse mortgage, property taxes and insurance premiums must still be paid by the homeowner, and failure to do so can lead to a risk of default.

Costs also need to be outlined. When adding origination fees, mortgage insurance premiums, and closing costs, the initial burden is generally higher than that of a traditional mortgage. On the other hand, it is a non-recourse structure, meaning that if the home value falls below the loan balance, heirs are not required to pay the excess. However, as equity decreases over time, the assets passed on to children may also diminish.

In Maryland, the population aged 65 and older makes up about 16% of the total, with an increase of 3.35% between 2023 and 2024 (Maryland Matters, reported July 2025). It is common for only one spouse to reach the qualifying age.

There are differences in residency protection and fund receipt methods between registering as a non-borrowing spouse and having both spouses listed as borrowers. If these differences are not accurately confirmed in writing before proceeding, unexpected situations may arise later.

• Initial costs are higher than those of a traditional mortgage
• Property taxes and insurance premiums must still be paid by the homeowner
• As equity decreases, inherited assets may also decline
• Mandatory counseling from a HUD-approved counseling agency is required before applying

As couples review the application documents together, there are often instances where each has different information. If one understands the loan repayment timing differently than the other understands the residency protection conditions, it can lead to misunderstandings later. Attending the counseling session together allows both spouses to hear the same explanations, which can reduce such misunderstandings. It is also important to consider that the younger spouse may have relatively more years ahead. Judging based on both the current need for funds and the future plans of that spouse to continue living in the home is a safe approach.

Before applying for a HECM, mandatory counseling from a HUD-approved counseling agency must be completed. The title and spouse protection conditions can be accurately confirmed during the counseling process. It is safest for both spouses to participate in the counseling, discuss thoroughly, and then make a decision.