Qualification Requirements for Reverse Mortgage Eligibility

A reverse mortgage allows homeowners to access their accumulated home equity as cash, providing financial relief. Similar to a credit line from banks, a reverse mortgage keeps the property title in your name while offering added benefits. The U.S. Department of Housing and Urban Development (HUD) offers the Home Equity Conversion Mortgage (HECM) program for qualifying seniors.

Eligibility is limited to older adults—generally seniors over a certain age—making it accessible only to a specific demographic.

Basic Reverse Mortgage Requirements
To qualify, applicants must meet specific standards:

Applicants must be at least 62 years old to apply for the reverse mortgage line of credit. If a spouse is under 62 but meets certain criteria, they may also qualify subject to approval.

The property must be titled in your name and your primary residence for most of the year. Reverse mortgages are not available for multi-unit rentals or commercial properties.

Condos, mobile, or manufactured homes that do not comply with HECM standards are ineligible.

If you still have an active mortgage, you can apply so long as the existing loan is paid off before the new one is issued. Lenders will evaluate your financial stability beforehand.

You must also stay current on federal taxes and government debts. Outstanding obligations need to be settled, which can be managed using reverse mortgage proceeds in some cases.

Applicants should plan to reserve part of the funds for property taxes, insurance, repairs, and maintenance.

After meeting these criteria, a counseling session with an HUD-approved agency is required. This ensures your eligibility, explains the financial details, and assesses your credibility.

Once approved, funds can be accessed through various methods:

A line of credit available on demand by submitting a written request.

Fixed-term payments over a specified period.

Steady monthly payments regardless of the home's remaining equity.