When consulting in Columbia, it is common to encounter situations where a house is registered under only one spouse's name. Recently, I received an inquiry from a wife asking if they could look into a reverse mortgage for a house solely in her husband's name. In such cases, it is important to consider both the advantages and disadvantages.

First, looking at the advantages, the average home price in Columbia, according to Zillow data from May 31, 2026, is $231,363, which has increased by 1.4 percent over the past year (zillow.com). Other sources report that the actual median sale price as of July 2026 is $240,000 (resideline.com). While this price range is relatively low compared to other regions, it can be seen as an accessible market for retirees.

However, the issue of ownership must be approached with caution. If the spouse whose name is not on the title is under 62 years old when applying for HECM, they will be classified as a non-borrowing spouse, and it is necessary to check whether separate protective provisions apply. Additionally, they must pass a financial capability assessment to ensure they can continue to pay property taxes and insurance premiums (hud.gov). This aspect can be advantageous for one spouse but disadvantageous for the other, so it is crucial for both partners to fully understand this issue. They should also be aware that failing to continue paying property taxes and insurance can lead to default, risking the loss of their home regardless of ownership status.

Costs must also be evaluated from both perspectives. The initial costs, including origination fees and mortgage insurance premiums, are certainly higher than those of conventional loans, which can be a burden. However, due to the non-recourse loan structure, if the home value falls below the loan balance later on, heirs are not required to pay the excess, which can be seen as a safety feature (consumerfinance.gov). On the other hand, the fact that equity decreases over time, reducing the assets passed on to children, remains a constant disadvantage. The average effective property tax rate in South Carolina is around 0.54 percent (steadily.com, based on 2026 data), which is lower than the national average, but it is important to remember that this burden does not completely disappear.

This issue of ownership is particularly common among families that have moved from other states. In their previous state, joint ownership was the norm, but upon moving to Columbia, they may have registered the property under one name for various reasons. If they wish to rectify the ownership later, it may involve additional legal procedures and costs, so it is often smoother to address the ownership structure before considering a reverse mortgage.

The percentage of the population aged 65 and older in South Carolina is 19.1 percent, slightly higher than the national average (census.gov, based on 2024 estimates). As this area continues to attract retirees, inquiries related to ownership are likely to increase, and the more prepared couples are, the less conflict they may face later on.

I advised this couple not to rush their decision and to first consult with a HUD-approved counseling agency, ensuring they clarify the rights of the non-titled spouse before making a judgment. Since this product has both advantages and disadvantages, it seems safer for the entire family to understand the details before making a decision rather than relying on just one side's explanation.

Columbia, along with South Carolina, operates a Homestead Exemption program for residents aged 65 and older, which can reduce property tax burdens if certain conditions are met. However, this program has residency and income requirements, so it is essential to check directly with the county tax office, and it is important to note that it is a separate program from reverse mortgages. Discussing whether both programs can be utilized together during the consultation process can also be helpful. This article is not investment or legal advice, and it is recommended to consult with a professional before entering into any contracts.