For whom is a reverse mortgage primarily designed?

A reverse mortgage is primarily designed for homeowners aged 62 or older. This age threshold is significant because it aligns with the financial needs and retirement planning of older adults, allowing them to convert a portion of their home equity into cash while continuing to live in their homes. By targeting those 62 and older, reverse mortgages address the needs of retirees who may be on a fixed income and looking for ways to supplement their financial situation, pay for healthcare, or fund other needs without having to sell their home.

The structure of reverse mortgages ensures that borrowers must be at least 62 to qualify, which is intended to protect lenders and ensure that the program is used responsibly by those with a greater need for financial flexibility in their later years. Understanding this specific age requirement is crucial for anyone studying real estate, mortgage products, or financial planning for seniors.