If one spouse is 62 or older and the other is younger, the younger spouse can still be protected under HUD rules as an eligible non-borrowing spouse. Here is how it works and what it takes to qualify.
Who counts as an eligible non-borrowing spouse
- Married to the borrower at closing and still married when the borrower passes
- Named in the loan documents as a non-borrowing spouse
- Lives in the home as a primary residence, then and after the borrower’s death
What protection they get
After the borrower passes, an eligible non-borrowing spouse can keep living in the home, and repayment is deferred, as long as they keep paying property taxes and insurance and maintain the home. They must establish a legal right to stay in the home, such as through a will or title, within the required time after the death.
They cannot draw any more money from the loan. Any unused line of credit stops when the borrower passes.
Why it matters for planning
The borrowing amount is based on the age of the youngest spouse, even if that spouse is not a borrower. A younger spouse usually means a smaller amount available. Steve will show you both scenarios so you can decide with your eyes open.
Common questions
Can my spouse be added as a borrower later?
Only by refinancing once they turn 62, if the numbers work at that time.
What if we marry after closing?
A spouse married after closing is generally not covered by these protections. Talk to Steve before making changes.
Does the non-borrowing spouse have to attend counseling?
They are strongly encouraged to participate, and many counselors require it, so both spouses understand the rules.
Related: How it works · Who qualifies · Costs · For families · FAQ · Service areas
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Steve Clune is a licensed loan officer for Kansas and Missouri. Call or text with your questions. If you miss him, send a text and he’ll get back to you.