How Do I Become Eligible for a Reverse Mortgage?

Here’s a simple, step-by-step guide to help you understand what’s required.

1. You must be at least 62 years old

• Reverse mortgages are specifically designed for older homeowners. To qualify, you (or your spouse, if you’re both applying) must be at least 62 years old. This program is meant to support seniors in retirement by turning the equity in their home into accessible funds — without having to move or take on monthly payments.

2. You should have significant equity in your home

• You don’t need to own your home outright, but you do need to have a good amount of equity built up. If there’s still a small mortgage balance remaining, that’s okay — as long as it can be paid off using the proceeds from the reverse mortgage. One of the main goals is to eliminate any existing mortgage payments, freeing up your monthly income.

3. The home must be your primary residence

• To qualify, the home must be where you live at least 6 months of the year. Second homes, vacation properties, and investment properties unfortunately don’t count. You need to live in the home full-time for the reverse mortgage to stay in good standing.

4. Your home has to meet certain property guidelines

• Not all homes are eligible, but many are. Here’s what typically qualifies:

• • Single-family homes
    

  • 2–4 unit properties, as long as you live in one of the units
    

  • Condos (must be FHA-approved)
    

  • Manufactured homes (must meet HUD standards, like being on a permanent foundation)

5. You’ll need to complete a counseling session

• Before you can move forward, you’re required to meet with a HUD-approved reverse mortgage counselor. This is a one-time session — usually by phone — that explains how the loan works, what your responsibilities will be, and what other options you might have. It’s a great way to make sure you’re fully informed and comfortable with the decision before signing anything.

Learn more about eligibility requirements for a reverse mortgage, situations where a reverse mortgage is best used, and common myths around reverse mortgage that we debunk with facts