An eligible non-borrowing spouse (NBS) is a spouse who will not be on the reverse mortgage (likely due to being younger than 62), but will be protected by the due and payable status. Borrowers with an NBS could access less funds, however the NBS will be eligible for deferral if the borrower passes away. Meaning, if the borrower passes away, the eligible NBS will be allowed to continue to reside in the home without have to payoff the reverse mortgage. If there is a line of credit or monthly payments, those options will cease to exist. To meet the requirements of an eligible non-borrowing spouse, the NBS:
- Occupies the home
- Is protected by the NBS due and payable deferral provision
- Has his or her age included in the calculation of the borrower’s principal limit.
For a more detailed explanation, visit our Non-Borrowing Spouse Guide to Reverse Mortgages