California reverse mortgage eligibility requirements
To be eligible for a reverse mortgage in California, at a minimum, homeowners must meet several age, property, and financial criteria. Keep in mind the eligibility requirements can vary depending on whether you take out a HECM or proprietary reverse mortgage loan.
Age requirement
At least one borrower must be 62 years or older for a HECM. If there’s a younger spouse, they may be listed as an eligible non-borrowing spouse, which helps protect their right to remain in the home if the older borrower passes away first, as long as loan requirements are met. Proprietary reverse mortgages may offer lower age requirements. Learn more about non-borrowing spouse protections.
Live in the home as your primary residence
The property must be your principal residence, meaning you live there most of the year. Second homes and investment properties are not eligible for a reverse mortgage. If you leave your home for more than 12 months to live elsewhere, your loan will come due.
Have sufficient equity in your home
You don’t need to own your home outright, but you must have enough equity to pay off any existing mortgage and still generate meaningful proceeds. The amount of required equity depends on your age, interest rates, and appraised home value.
Complete mandatory counseling
Before a lender may process your application, you must complete a session with a HUD-approved housing counselor. Your counselor will explain how reverse mortgages work, review alternatives, and ensure you understand the financial and long-term implications of the loan. Federal law requires this step for HECMs and most proprietary reverse mortgage lenders include this requirement as well.
Pass a financial assessment
While there is no minimum credit score, lenders do complete a financial assessment to confirm you’re able to keep up with ongoing obligations such as property taxes, homeowners insurance, and basic home maintenance. If needed, part of the loan proceeds may be set aside to help cover these costs. Learn more: Can I get a reverse mortgage if I have bad credit?
These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.
