Oregon Broker PSI Practice Exam

At what age can individuals obtain a reverse mortgage?

1. 60 years old

2. 62 years old

3. 65 years old

4. 50 years old

The correct answer is: 62 years old

Individuals can obtain a reverse mortgage at the age of 62. This age requirement is established by the Home Equity Conversion Mortgage (HECM) program, which is the only federally insured reverse mortgage program in the U.S. The purpose of a reverse mortgage is to provide seniors with a way to convert a portion of their home equity into cash, which can be especially helpful for those on a fixed income. By setting the minimum age at 62, the program targets a demographic that is generally in retirement and may require additional financial resources to cover living expenses, healthcare, or other costs associated with aging. Choosing an age lower than 62, such as 60, 65, or 50, does not align with the established guidelines for reverse mortgages, which aim to ensure that borrowers have reached an age where financial independence and stability are critical considerations. Thus, the correct answer is firmly anchored in federal guidelines and reflects the legislative intent behind the reverse mortgage program.