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Reverse Mortgage Eligibility Requirements

Find out if you qualify for a reverse mortgage based on age, home ownership, and other key factors.

Editorial Team•Updated 2024

Who Can Get a Reverse Mortgage?

Reverse mortgages are designed specifically for older homeowners who want to access their home equity without selling their home or making monthly mortgage payments. However, not everyone qualifies. Understanding the eligibility requirements can help you determine if a reverse mortgage is an option for you.

Basic Eligibility Requirements

To qualify for a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, you must meet the following criteria:

1. Age Requirement

You must be at least 62 years old. If you're married and both spouses are on the title, the youngest borrower must be at least 62. However, if a spouse is under 62, they may still be protected as an "eligible non-borrowing spouse" under certain conditions.

2. Home Ownership

You must own your home outright or have significant equity. If you still have a mortgage balance, it must be low enough to be paid off with the reverse mortgage proceeds at closing. Most borrowers have at least 50% equity in their homes.

3. Primary Residence

The home must be your primary residence. You must live in the home for the majority of the year. Vacation homes, investment properties, and rental properties do not qualify.

4. Property Type

Your home must meet FHA property standards. Eligible property types include:

  • Single-family homes
  • 2-4 unit properties (if you occupy one unit)
  • HUD-approved condominiums
  • Manufactured homes that meet FHA requirements

5. Financial Assessment

You must demonstrate the ability to pay ongoing obligations. While there's no minimum credit score requirement, lenders conduct a financial assessment to ensure you can pay:

  • Property taxes
  • Homeowners insurance
  • HOA fees (if applicable)
  • Basic home maintenance

If there are concerns about your ability to meet these obligations, a portion of your loan proceeds may be set aside in a "Life Expectancy Set-Aside" (LESA) to cover these costs.

6. No Federal Debt Delinquency

You cannot be delinquent on any federal debt. This includes federal income taxes or federal student loans. Any outstanding federal debt must be resolved before closing.

7. HUD-Approved Counseling

You must complete counseling with a HUD-approved counselor. This mandatory session ensures you understand how reverse mortgages work, the costs involved, and alternatives to consider. The counseling can be done in person or over the phone.

Property Requirements

In addition to borrower requirements, your property must meet certain standards:

  • Good Condition: The home must meet FHA minimum property standards. If repairs are needed, they may need to be completed before closing or funded through the loan.
  • Safe and Sound: The property must be structurally sound and free of health and safety hazards.
  • Flood Insurance: If located in a flood zone, you must maintain flood insurance.

What Doesn't Affect Eligibility

Interestingly, several factors that affect traditional mortgages don't apply to reverse mortgages:

  • Income Level: No minimum income requirement
  • Credit Score: No minimum credit score (though credit history is reviewed)
  • Employment Status: You don't need to be employed
  • Monthly Debt Payments: Not calculated the same way as traditional loans

Non-Borrowing Spouse Protections

If your spouse is under 62, they may qualify as an "eligible non-borrowing spouse." This allows them to remain in the home after the borrowing spouse passes away, provided they:

  • Were married to the borrower at the time of loan closing
  • Have been married continuously since then
  • Live in the home as their primary residence
  • Can prove they can maintain the home, taxes, and insurance

Quick Eligibility Checklist

Use this checklist to quickly assess your eligibility:

  • ☐ I am 62 years of age or older
  • ☐ I own my home and have significant equity
  • ☐ This is my primary residence
  • ☐ My property type is eligible (single-family, condo, etc.)
  • ☐ I can pay property taxes and insurance
  • ☐ I am not delinquent on any federal debt
  • ☐ I am willing to complete HUD counseling

Next Steps

If you meet the basic eligibility requirements, the next step is to speak with a HUD-approved counselor and explore your options. Counseling is free or low-cost and provides valuable, unbiased information to help you make an informed decision.

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