How Do I Become Eligible for a Reverse Mortgage?

First: 

You’ve got to be at least 62 years old. That’s the minimum age for the most common type, called a Home Equity Conversion Mortgage (HECM), which is backed by the federal government. It’s designed for those in retirement who’ve built up some home equity over the years.

Second: 

The home has to be your primary residence—meaning you live there most of the time. Vacation homes or rentals don’t count. It can be a single-family house, a condo, or even a small multi-unit property, as long as it meets certain standards (like FHA approval for condos).

Third: 

You need to own the home outright or have a low mortgage balance. If there’s still a mortgage, you’ll have to pay it off with the reverse mortgage proceeds or other funds when you close the deal. The idea is that there’s enough equity to tap into—typically, the more equity, the more cash you can access.

Fourth: 

You’ve got to show you can keep up with ongoing costs like property taxes, homeowners insurance, and maintenance. Lenders usually check your finances—income, credit, debts—to make sure you’re not at risk of defaulting on those responsibilities. 

Finally: 

You’ll need to complete a mandatory counseling session with a HUD-approved counselor. It’s a chance to understand the ins and outs, ask questions, and make sure it’s right for you. Your home has to meet basic property standards, so a quick appraisal will happen too.

If you hit all those marks—age 62+, primary residence, decent equity, financial responsibility, and counseling—you’re in the running. It’s less about “qualifying” like a traditional loan and more about meeting these practical thresholds. 

Reverse mortgages can be a useful financial tool for eligible seniors looking to supplement income, pay for healthcare, or cover living expenses, but they also come with complexities that should be thoroughly understood before proceeding.

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