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Family reverse mortgage: Can you get a loan with a parent, sibling, or friend?
In this article:
- Reverse mortgage basics
- What loan options are available for a family reverse mortgage?
- What are the rules about sharing a home with a reverse mortgage?
- What are non-borrowing spousal protections?
- How to apply for a family reverse mortgage
- Pros and cons of getting a reverse mortgage with a family member
- Is getting a reverse mortgage with a family member a good idea?
- FAQs
Quick Answer: In some cases, you may be able to get a reverse mortgage with a family member or friend, which is sometimes called a family reverse mortgage. However, each borrower must meet the product’s age, ownership, primary residence, and financial requirements.
Key Points
Reverse mortgages are based on age, ownership, and primary residence requirements—not family relationships—so multiple eligible co-owners may apply together.
If the last borrower permanently moves out or passes away, the loan becomes due. Heirs may repay the balance to keep the home. For home equity conversion mortgages (HECMs), repayment may be limited to 95% of the home’s appraised value.
Shared reverse mortgages require long-term planning, since co-borrowers must meet ongoing loan obligations and agree on housing, financial, and estate goals.
If you’re considering a reverse mortgage but aren’t married, you may be wondering whether you’re still eligible.
Many people assume reverse mortgages are limited to married couples. However, in some situations, siblings, parents, adult children, and even close friends who share a home may be able to apply for a reverse mortgage together.
Understanding who may apply, who may remain in the home, and when the loan becomes due could help families decide whether this option makes sense for them.
This article explains how reverse mortgage joint ownership—sometimes referred to as a family reverse mortgage—works.
Reverse mortgage basics
A reverse mortgage allows eligible homeowners to convert part of their home equity into cash. Unlike a traditional mortgage, borrowers are not required to make monthly mortgage payments as long as they live in the home as their primary residence and continue to meet the loan’s obligations.
The most common type of reverse mortgage is the home equity conversion mortgage (HECM), insured by the U.S. Department of Housing and Urban Development (HUD). For a HECM, borrowers generally must:
- Be at least 62 years old
- Live in the home as their primary residence
- Own the home outright or have substantial equity
- Complete counseling with a HUD-approved counselor
Lenders also conduct a financial assessment to confirm the borrower is able to pay property taxes and homeowners insurance and keep the home in good condition.
Reverse mortgages involve costs and repayment rules to keep in mind:
- Upfront and ongoing costs may apply, including origination fees, closing costs, and mortgage insurance premiums.
- Costs may be higher than alternatives such as home equity loans or lines of credit.1
- Loan balances increase over time as interest and fees accrue.
- Repayment is typically required when the home is sold, the borrower permanently moves out, or the last borrower passes away.
Reverse mortgages are non-recourse loans, meaning repayment is limited to the home’s value.2
The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, and hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
→For a more detailed explanation of how reverse mortgages work, see our guide: What Is a Reverse Mortgage?
What loan options are available for a family reverse mortgage?
There is no reverse mortgage specifically for family members. If multiple people living in the same home meet the eligibility requirements, they may apply together for the same loan products available to individual borrowers.
In most cases, that means choosing between two types of loans: a federally insured HECM or a proprietary (sometimes called jumbo) reverse mortgage offered by private lenders.
HECM
The most common reverse mortgage product is the HECM, which the federal government insures. Borrowers must meet standard criteria, including minimum age, ownership, and counseling requirements.
Because all borrowers must meet the age requirement, a HECM may not be an option if one co-owner is under 62 (unless eligible non-borrowing spouse rules apply).
Proprietary (jumbo) reverse mortgage
Proprietary reverse mortgages are private loans offered by banks and other financial institutions. Eligibility requirements vary, and some proprietary loans may allow borrowers younger than 62, depending on the product and state regulations.
For families or friends with higher-value homes—or situations that fall outside HECM guidelines—a proprietary loan may provide additional flexibility. However, terms and consumer protections may differ because these loans are set by individual lenders rather than federal rules.
To learn more, please visit the Consumer Financial Protection Bureau’s (CFPB) Reverse Mortgage: A Discussion Guide.
How a family reverse mortgage might work in practice
To illustrate, consider two siblings, David and Jason, who inherited their family home and live there together. Both are over age 62 and are listed as co-owners on the property title.
Recently, David began using a wheelchair, and the brothers want to install a ramp and make other accessibility improvements so he can move around the home more easily. To help cover those costs, they look into a reverse mortgage.
Because both David and Jason meet the age, ownership, and primary residence requirements, they may apply together for a HECM. After the appraisal and financial assessment are complete, the loan closes and they receive funds that may be used for the home modifications.
Since both brothers are listed as borrowers, either may continue living in the home if the other passes away or no longer lives there. The reverse mortgage would typically become due when the last remaining borrower sells the home, permanently moves out, or passes away.
If only one of the brothers meets the age or residency requirement, that person would be eligible to apply as the borrower. The other brother might still live in the home, but his rights could differ depending on the loan type and product rules.
It is also important to consider how the home’s ownership is structured. Arrangements such as joint tenancy (where the surviving owner typically receives the property automatically) or tenancy in common (where each owner’s share may be left to heirs) may affect what happens to the home when one owner dies. As a result, families may wish to review the title with a real estate attorney before applying.
What are the rules about sharing a home with a reverse mortgage?
Reverse mortgage eligibility is based on age, ownership, and occupancy—not on who else lives in the home. As long as you continue to occupy the home as your primary residence and meet the loan’s ongoing obligations, the loan does not restrict who else may live there. You may share the home with siblings, adult children, friends, roommates, other family members, or a spouse who is not listed as a borrower.
It’s also important to understand what happens if a borrower permanently moves out or passes away. In most cases, the loan then becomes due and payable. Individuals who are not listed as borrowers generally do not have the right to remain in the home unless the loan is repaid. Temporary absences for medical reasons may be permitted under product guidelines, but extended or permanent moves typically trigger repayment.
If a family member is an eligible co-borrower on the reverse mortgage, they may continue living in the home as long as they meet the loan’s requirements.
Here’s a breakdown of who could stay in the home—and when—under a reverse mortgage with joint ownership:
| Situation | Could the person stay in the home? | What must happen? |
| Co-borrower passes away | Yes, if the other co-borrower remains eligible | Remaining borrower must meet loan obligations |
| Co-borrower moves out permanently | Yes, if at least one borrower remains | Loan continues |
| Last borrower passes away | No (unless loan is repaid) | Loan becomes due |
| Non-borrower living in home | No automatic right to remain | Loan must be repaid |
| Eligible non-borrowing spouse (HECM only) | Yes, if HUD requirements met3 | Must continue meeting loan terms |
What are non-borrowing spousal protections?
If one spouse meets the minimum age requirement for a reverse mortgage but the other does not, the younger spouse may be identified as an eligible non-borrowing spouse. To receive these protections, the spouse must have been identified in the loan documents at closing and meet HUD requirements.
In addition, reverse mortgages include non-recourse protections, which means the borrower or their heirs will not owe more than the home’s value when the loan becomes due and the home is sold. These protections apply to HECMs and may not be available with proprietary reverse mortgage products.2, 3
An eligible non-borrowing spouse may continue living in the home after the borrowing spouse passes away, as long as they:
- Continue occupying the home as a primary residence
- Meet the loan’s ongoing obligations, including property taxes, homeowners insurance, and home maintenance
If these conditions are met, the loan does not become due and payable until the surviving spouse permanently moves out or passes away. However, they may no longer have access to any remaining line of credit or ongoing loan disbursements.
→ Learn more: A non-borrowing spouse guide to reverse mortgage.
How to apply for a family reverse mortgage
If you’re applying for a reverse mortgage with a family member, all individuals listed as borrowers must be on the property title (or named in a trust that holds title to the home). Each borrower must independently meet standard eligibility requirements, including the minimum age requirement and completion of the lender’s financial assessment.
If one party does not meet the eligibility requirements, they generally cannot be listed as a borrower. One exception involves an eligible non-borrowing spouse under HECM rules. As explained above, these protections may allow a spouse who is not listed as a borrower to remain in the home under certain conditions.
Otherwise, the application process is similar to applying individually and typically includes the following steps:
1. Determine eligibility
Confirm that all borrowers meet the basic requirements, including minimum age (62+ for HECMs), sufficient home equity, primary residence occupancy, and the ability to maintain property charges such as taxes and insurance.
2. Complete HUD-approved counseling3
Schedule and attend an independent counseling session with a HUD-approved counselor to discuss how the loan works, the costs involved, your responsibilities as a borrower, and possible alternatives.3
3. Submit your application
Select a lender, complete the application, and provide required documentation, such as identification, proof of age, income information, and property details.
4. Appraisal and financial assessment
The lender will order an appraisal to determine the home’s value and conduct a financial assessment to confirm that all borrowers are able to meet ongoing loan obligations. The appraisal may also identify repairs that must be completed before the loan can proceed.
5. Loan approval, closing, and funding
After reviewing the final loan terms and signing the closing documents, funds are disbursed according to the selected payment option. All HECMs include a three-business-day right of rescission, during which the loan may be canceled before funds are released.
Pros and cons of getting a reverse mortgage with a family member
Applying for a family reverse mortgage may offer certain advantages, but it also introduces complexities that are worth keeping in mind. Considering both the advantages and potential drawbacks may help families decide whether getting a reverse mortgage together fits their long-term plans.
Potential advantages
Getting a reverse mortgage together may offer advantages such as:
- Shared upfront and ongoing costs: Co-borrowers share responsibility for closing costs, fees, property taxes, homeowners insurance, and home maintenance.
- Emotional and practical support: Living together may provide companionship and shared household responsibilities, especially for those planning to age in place.
- Continued occupancy for a surviving co-borrower: If one co-borrower passes away or permanently moves out, the remaining eligible co-borrower may stay in the home as long as loan obligations are met.
- Proactive financial planning: Applying together may prompt conversations about estate plans, inheritance expectations, housing goals, and how a reverse mortgage fits into broader retirement or long-term care decisions.
The right to remain in the home is contingent on paying property taxes and homeowner’s insurance, maintaining the home, and complying with the loan terms.
Potential drawbacks
At the same time, there are other important factors to keep in mind:
- Borrower eligibility requirements: Each person must independently meet age, ownership, occupancy, and financial assessment standards. If one does not meet these requirements, they generally cannot be listed as a borrower (with limited exceptions for eligible non-borrowing spouses under HECM rules). One borrower’s credit profile, income, or outstanding obligations may also affect overall approval.
- Loan amount based on the youngest borrower: For HECMs, available proceeds are generally calculated using the age of the youngest borrower. If one co-borrower is significantly younger, this may reduce the total amount available, meaning older co-borrowers might otherwise have been eligible for more money.
- Ongoing financial responsibility—and foreclosure risk: If one borrower moves out or passes away, the remaining borrower must continue paying property taxes and homeowners insurance and maintaining the home. Failure to meet these obligations may cause the loan to become due and payable and potentially lead to foreclosure.
- Impact on heirs: Because reverse mortgage balances increase over time, home equity may decrease, potentially affecting the inheritance left to heirs.
- Changes in plans or financial priorities: If one co-borrower later decides to move out, sell the home, or no longer stay on the loan, the situation may require refinancing, selling the home, or taking other legal steps. Talking in advance about how the funds will be used and how long each person plans to stay may help prevent misunderstandings.
The Federal Trade Commission has additional information about how reverse mortgages work and what to consider before applying.
Is getting a reverse mortgage with a family member a good idea?
In some situations, applying for a family reverse mortgage may make sense—particularly when both individuals meet eligibility requirements, plan to live in the home long term, and are aligned on financial goals.
However, applying together also means sharing responsibility for the loan. Each co-borrower must be independently eligible, remain in compliance with loan terms, and maintain open communication about how the loan could affect future housing and estate plans.
Because reverse mortgages involve important legal and financial considerations, families may wish to consult a qualified real estate attorney—and, where appropriate, a financial advisor—to help ensure everyone understands the potential implications. You may also review educational materials from organizations such as the National Council on Aging to learn more about how reverse mortgages fit into broader retirement planning decisions.
If you’re exploring whether a reverse mortgage fits your situation, our reverse mortgage calculator could help you estimate what may be available based on your age, home value, and location.
FAQs
Can I add people to my existing reverse mortgage?
No. You generally cannot add someone to an existing reverse mortgage. To include another borrower, you typically need to refinance into a new loan, and the new borrower must meet all eligibility requirements.
Can I pay off my parents’ reverse mortgage?
Yes. When the loan becomes due, heirs may repay the balance to keep the home, sell the home to repay the loan, or use other funds to pay it off.
For HECMs, heirs may repay the lesser of the loan balance or 95% of the home’s current appraised value. For example, if the loan balance exceeds the home’s value, heirs may purchase the home for 95% of its appraised value, and FHA insurance covers the difference.3
Are heirs responsible for reverse mortgage debt?
No. Reverse mortgages are non-recourse loans, which means repayment is limited to the home’s value at the time the loan becomes due and the home is sold. Heirs are not personally responsible for any remaining balance beyond the property’s value. If the loan balance exceeds the home’s value, mortgage insurance (for FHA-insured loans) covers the difference.2, 3
Can relatives get a family reverse mortgage together?
Yes. In a reverse mortgage joint-ownership structure, each borrower must meet age, ownership, occupancy, and financial assessment standards to be listed on the loan.
What happens if one co-borrower passes away?
The surviving eligible co-borrower may remain in the home as long as they meet the loan’s ongoing requirements. The loan becomes due only after the last borrower permanently moves out or passes away.
What happens if one co-borrower moves out?
As long as at least one eligible borrower continues living in the home and meets loan obligations, the loan does not become due.
Can I leave my home to my children if I have a reverse mortgage?
Yes. However, when the loan becomes due, your heirs must repay the balance if they wish to keep the home.
Does adding a family member affect how much I can borrow?
Yes. Reverse mortgage proceeds are typically based on the age of the youngest borrower, which may reduce the total amount available.
Can an adult child live in the home if they are not on the loan?
Yes. A reverse mortgage does not restrict who may live in the home. However, if the borrower moves out or passes away, the loan must be repaid for others to remain in the property.
What is an intrafamily reverse mortgage?
An intrafamily reverse mortgage usually refers to a private loan arrangement between family members rather than a reverse mortgage issued by a lender. In this setup, a family member provides funds to the homeowner, and repayment is typically deferred until the home is sold, the borrower permanently moves out, or the borrower dies.
1Finance of America does not currently offer home equity loans.
2A non-recourse reverse mortgage transaction limits the homeowner’s liability to the proceeds of the sale of the home (or any lesser amount specified in the credit obligation).
Non-recourse means that you, or your estate, can’t owe more than the value of your home when the loan becomes due and the home is sold.
Non-recourse means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender cannot look to your other assets (or your estate’s assets) to meet the outstanding balance on your loan.
3These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.
About the author
Lisa Lacy
Lisa Lacy is a Senior Web Content Writer at Finance of America and a journalist with more than 20 years of experience specializing in business, and technology. Her work has been published in The Wall Street Journal, The Financial Times, and numerous other leading outlets.
Disclaimer
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For tax advice, please consult a tax professional. For more information about whether a reverse mortgage fits into your retirement strategy, you should consult your financial advisor.
