What are reverse mortgage eligibility requirements?

Key Takeaways

Eligibility for reverse mortgages is based on factors such as age, primary residence status, home value, property type, and the ability to meet ongoing obligations.
Even when basic requirements are met, a reverse mortgage loan may not be available if the property does not meet product requirements or if you are unable to pay ongoing costs like homeowners insurance and property taxes, and maintain the home.
Different types of reverse mortgages—including HECM, proprietary, and jumbo—have some distinct eligibility requirements.

Reverse mortgages may be a helpful option for homeowners who want to use their home equity later in life—but they’re not all the same, and they’re not right for everyone. Whether you are eligible depends on a few basics, like your age, your home, and the type of reverse mortgage you’re considering. Getting familiar with these details upfront could help you decide if this is worth a closer look.

In this guide, we’ll break down how reverse mortgages work, what you typically need to assess eligibility, and how the different options compare. We’ll also talk through what the process usually looks like and answer some of the common questions homeowners tend to ask when they’re just starting to explore this path.

How reverse mortgages work

Reverse mortgages work by allowing eligible homeowners—typically age 62 or older—to convert a portion of their home equity into money from the loan. Unlike a traditional mortgage, there are no required monthly mortgage payments if the borrower lives in the home as their primary residence and continues to meet ongoing obligations, such as paying property taxes, homeowners insurance, and maintaining the property.

With a reverse mortgage, the loan balance increases over time as interest accrues and the homeowner accesses funds. The borrower retains ownership of the home, and the loan becomes due when the home is sold, the borrower permanently moves out, the homeowner is away from the home for more than 12 consecutive months, or the last borrower passes away.

At that point, the loan is typically repaid by selling the home, refinancing, or using other funds, and any remaining equity belongs to the borrower or their heirs.

The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

Reverse mortgages are designed to provide flexibility in how funds are disbursed, which may include a lump sum payment, monthly payments, a line of credit, or a combination, depending on the loan type. Because reverse mortgages are intended for long-term housing needs, eligibility and loan amounts are based on factors like age, appraised value, interest rates, and the borrower’s ability to meet ongoing property-related obligations.

To make sure a reverse mortgage loan is a good fit, borrowers must meet certain eligibility requirements related to those factors.

→Learn more in our guide, How does a reverse mortgage work?

What are the eligibility requirements for a reverse mortgage loan?

Eligibility requirements vary by borrower, property, and loan type. However, generally speaking, they include:

Age: You must be at least 62 for a home equity conversion mortgage (HECM) loan; borrowers who are 55+ may be eligible for some proprietary reverse mortgages.
Home equity: You need to own your home outright or have significant equity.
Financial health: You must be able to continue paying property taxes, homeowners insurance, and other housing costs like maintenance.
HUD-required counseling: You must attend (and pay for) a session with a HUD-approved counselor.
Property type: You must live in an approved property type, which includes single-family homes, 2-4 unit properties (if you occupy one), HUD-approved condos, and some manufactured homes.
Residency: The property in question must be your primary residence.
Condition: The home must be in good condition and meet appraisal standards.
Title: The property must have a clear title.
Debt: You must not be delinquent on any federal debt, such as federal income taxes or federally backed student loans.

These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.

To learn more, please visit the CFPB’s Reverse Mortgage: A Discussion Guide.

Here’s a closer look at each specific requirement:

Home equity

There is no set equity percentage required to be eligible for a HECM loan, but borrowers generally need 50 to 60%. Any existing mortgage balance typically must be paid off at closing using reverse mortgage proceeds or other funds. Proprietary reverse mortgages may require more equity than a HECM loan, but this varies by lender.

Jumbo reverse mortgages, which are another proprietary option for higher-value homes, usually have the highest equity requirements. Because the loan amounts tend to be larger, lenders typically want you to own more equity at the start of the loan.

Age

For most reverse mortgages, borrowers must be at least 62 years old, but some proprietary loans are available to those who are 55 and older.

If your spouse is not yet 62, you may still be eligible for a reverse mortgage loan. In this case, your partner will be considered a non-borrowing spouse, which means they are not listed as a borrower but may still have certain protections that allow them to remain in the home if the borrowing spouse passes away or permanently moves out, as long as loan requirements are met.

→Learn more about spousal protections in A non-borrowing spouse guide to reverse mortgage.

Financial assessment

Unlike a traditional mortgage, there is no minimum credit score for HECMs, but lenders will conduct a financial review. This process helps ensure you can meet ongoing responsibilities, like property taxes, insurance, and home maintenance costs.

You can expect lenders to review sources of income, like Social Security, pensions, and retirement accounts, as well as monthly expenses, discretionary income, credit history, and payment history for property taxes and homeowners insurance. If the lender is concerned about your ability to cover ongoing expenses, they may require what is known as a Life Expectancy Set-Aside (LESA). A LESA sets aside a portion of your loan to pay for these costs over time.

While it is still possible to get a reverse mortgage if you have debt, borrowers cannot be delinquent on federal debts, such as federal income taxes or student loans. If a homeowner is delinquent, they may still be eligible for a reverse mortgage loan if the debt is paid off or the borrower establishes a repayment plan with the federal agency prior to closing.

Property requirements

The property in question must be your primary residence, or where you live most of the year. That means vacation homes and investment properties don’t qualify.

Moving into a nursing home may impact your residency status. If you are away for less than 12 months and intend to return—like, say, following surgery or rehab—the loan does not automatically become due. However, if you permanently move to an assisted living facility or are otherwise away for 12 months or more, the home may no longer be considered your primary residence, and the reverse mortgage loan could become due and payable.

In addition, the home must fall into one of the following categories: A single-family home, up to a four-unit property if you live in one of the units, a HUD-approved condominium, or a manufactured home that meets Federal Housing Administration (FHA) requirements.

These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.

The property must be in good condition and pass an appraisal—or the repairs must be completed before proceeding with the loan. This includes meeting the FHA’s Minimum Property Standards (MPS), which cover basic safety requirements like working utilities, a functional heating system, and a safe water supply.

Finally, you have to have clear ownership of the property. That means there can’t be any liens or title issues.

Financial obligations

A reverse mortgage includes early expenses like HUD-mandated counseling and an appraisal, as well as:

Closing costs: Origination fee, initial mortgage insurance premium, title insurance
Ongoing costs: Servicing fees, interest charges, annual mortgage insurance premium
Continuing obligations: Property taxes, maintenance

If borrowers fail to pay property taxes and homeowners insurance and/or maintain the home, the loan could become due and payable.

Mandatory counseling session

HECM loans require you to attend a counseling session with a HUD-approved specialist who can answer your questions and ensure you understand:

How a reverse mortgage loan works
Your responsibilities as a borrower
What triggers the loan to become due and payable
What costs and fees you can expect
How a reverse mortgage will impact your heirs
What loan alternatives exist
And whether you can meet the obligations of the loan

Let’s dig into how these eligibility requirements compare by loan type.

Types of reverse mortgages and their requirements

All reverse mortgages require primary residence occupancy, sufficient equity, and payment of ongoing property costs and insurance. However, HECM loans are distinguished by FHA insurance and other federal requirements, while proprietary and jumbo reverse mortgages offer greater flexibility in age, home value, and underwriting, and come with fewer government-mandated protections.

Home equity conversion mortgages (HECM)

A Home Equity Conversion Mortgage, or HECM, is the only reverse mortgage loan insured by the U.S. government. It is available from FHA-approved lenders and allows borrowers to supplement their income by tapping into their home equity as a source of funds. Homeowners with HECM loans can stay in their homes as long as they are current on property taxes and homeowners insurance and meet other requirements, including:

Age: At least one borrower is 62 or older.
Counseling: The borrower(s) has/have completed a HUD-approved reverse mortgage counseling session.
Debt: The borrower is not delinquent on federal debts at closing, such as federal income taxes or student loans.
Review: The borrower has undergone a review of income, assets, and credit history.

These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.

The amount of equity available for withdrawal is determined by the age of the youngest borrower or non-borrowing spouse, along with interest rates and home value.

Jumbo reverse mortgage

A jumbo reverse mortgage is a type of proprietary reverse mortgage loan that allows homeowners with high-value properties to borrow larger amounts—typically up to $4 million. (By way of comparison, the FHA lending limit for HECM loans is $1,249,125 in 2026.)

This option may be available to borrowers as young as 55, depending on the lender and state.

Unique eligibility requirements for a jumbo reverse mortgage include:

Minimum age may be as young as 55, depending on lender requirements
Minimum home value varies by lender, but is often ~$750k–$1M+
Credit score/financial strength is part of the qualification process
Loan terms vary by lender
Counseling is not federally required, but may be required by lender

At Finance of America, this option falls under our HomeSafe products, which include HomeSafe and HomeSafe Second reverse mortgages.

HomeSafe is a proprietary jumbo reverse mortgage loan that pays off an existing mortgage and lets homeowners take out equity without monthly payments.

HomeSafe Second is a second-lien reverse mortgage, which means it is added on top of your first mortgage. It is second in priority to the first mortgage, so if the home is sold, the first mortgage is paid off first, followed by the second. Because you retain your first low-rate mortgage, you have to continue making monthly payments on it, but no monthly payments are required on the HomeSafe Second loan.

Here is a side-by-side look at how eligibility requirements compare for both:

HomeSafe vs. HomeSafe Second — Eligibility Requirements

Eligibility Factor	HomeSafe (Primary Jumbo Reverse)	HomeSafe Second (Second-Lien Reverse)
Minimum age	Usually 55+ (60+ or 62+ in some states)	Generally 55+, varies by state (e.g., 60+ WA, 62+ TX)
Primary residence	Must be the borrower’s primary residence	Must be the borrower’s primary residence
Property requirements	Must meet program property criteria and be in good condition	Must meet program property criteria
First mortgage requirement	Not required—existing mortgage is typically paid off at closing	Required — must have an existing first mortgage
Status of first mortgage	N/A (first mortgage is paid off)	Must be fully amortizing and current
Ability to keep first mortgage	No—HomeSafe replaces it	Yes—borrower keeps existing loan and rate
Loan size / equity access	Larger loan amounts; not bound by FHA/HECM limits	Typically smaller amounts, based on equity behind the first lien
Credit / financial review	Lender-driven financial assessment; no federal credit floor	Lender-driven financial and credit review
Ongoing payment obligations	Taxes, insurance, HOA, and property maintenance	First mortgage payments plus taxes, insurance, HOA, and maintenance
Monthly payments on reverse loan	None*	None on the second lien (if terms are met)*
Geographic availability	Broad availability (varies by state)	Select states only, based on FAR licensing

*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

Other proprietary reverse mortgages

Proprietary (non-jumbo) reverse mortgages fill the gap between HECMs and jumbo reverses, and may offer lower age thresholds, no FHA insurance, and more flexible structures, but with greater lender discretion and fewer protections than FHA-insured HECMs.

Proprietary (non-jumbo) reverse mortgages are offered by a variety of lenders. Depending on factors like lender and location, some options are available for homeowners as young as 55. Generally speaking, the main eligibility requirements include:

Age: Minimum age is typically 60 or older, although some products are 55+ while others are 62+, depending on the lender and state.
Occupancy: The home must be the borrower’s primary residence.
Home value: The home is generally expected to be at or below the FHA’s HECM limit ($1,249,125 in 2026), though some lenders may allow slightly higher values.
Home equity: Many lenders require more clearly defined minimum equity levels than HECM reverse mortgages.
Loan-to-value limits: Maximum loan-to-value (LTV) ratios are set by the lender, rather than by FHA guidelines.
Property type: Single-family homes, condos, and townhomes commonly qualify; 2–4 unit properties unless owner-occupied, manufactured homes, and co-ops are typically excluded.
Financial review: Lenders may review credit history, income, and assets as part of eligibility.
Education: HUD counseling is not required, though most lenders may require third-party counseling or educational materials.
Ongoing obligations: Borrowers must be able to pay property taxes, maintain homeowners insurance, cover HOA dues (if applicable), and maintain the home.
Mortgage insurance: FHA mortgage insurance is not required.
Non-recourse protection: Common, but provided through loan terms rather than government insurance.
Program rules: Equity, property, and underwriting requirements vary by lender.

A non-recourse reverse mortgage transaction limits the homeowner’s liability to the proceeds of the sale of the home (or any lesser amount specified in the credit obligation).

Non-recourse means that you, or your estate, can’t owe more than the value of your home when the loan becomes due and the home is sold.

Non-recourse means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender cannot look to your other assets (or your estate’s assets) to meet the outstanding balance on your loan.

Here’s a closer look at how the eligibility requirements for all three loan types compare:

Feature	Proprietary (Non-Jumbo)	HECM	Jumbo
Minimum age	~60 (varies by lender)	62+	55–60 (varies by lender)
FHA insured	❌ No	✅ Yes	❌ No
Loan limit	Varies by lender	FHA cap	~$4 million (varies by lender)
Target home value	Moderate	All (subject to FHA cap)	High
Financial assessment	Includes a credit check	Includes a credit check (no minimum score)	Includes a credit check
Counseling	Optional (lender-driven)	Required	Optional
Mortgage insurance	No	Yes	No
Rules standardized	❌ Lender-defined	✅ FHA-standardized	❌ Lender-defined

Reverse mortgage qualification process

The reverse mortgage qualification process varies based on factors like loan type, lender, and location, but generally includes verifying age and occupancy, completing required counseling (for HECMs), appraising and reviewing the property, evaluating the borrower’s ability to meet ongoing obligations, and finalizing loan approval and closing.

Let’s take a closer look:

Initial review: After you have compared loan products, rates, and fees, and chosen a lender, they will conduct an initial eligibility check and review requirements like your age, property type, and equity, as well as whether the home is your primary residence.
Counseling: Then, if you’re applying for a HECM loan, you will have to complete the HUD-mandated counseling.
Application: Next, you’ll complete an application, go over necessary disclosures with your lender, and select a loan and payout method. After that, the lender will order an appraisal, and the appraiser will review the property condition and identify repairs if needed. The home repairs won’t have to be done immediately, but they will have to be completed before the loan can close.
Financial assessment: At this point, the lender will review your income, assets, and credit if applicable to figure out if you can continue to pay property taxes, insurance, and HOA dues. This will determine whether you need a LESA, or Life Expectancy Set-Aside, or not. As the name implies, the LESA is a portion of the loan set aside to help make sure property taxes and homeowners insurance are paid throughout your expected lifetime.
Title: Then, the lender will order a title search and lien review to identify existing mortgages and liens and to finalize payoffs for those obligations.
Signing: At this point, you’re ready for approval and closing and can sign your loan documents.
Waiting period: Reverse mortgage funds are generally disbursed following a three-business-day waiting period known as the right of rescission, which is akin to a cooling-off period that gives you one more opportunity to change your mind if you’re still on the fence. It is a consumer protection required by federal law that allows you to cancel the loan without penalty.
Disbursement: After this waiting period, loan proceeds are disbursed, and any existing mortgages and liens are paid off.

Is a reverse mortgage right for you?

If you meet these basic eligibility requirements and are comfortable with the ongoing responsibilities of homeownership, a reverse mortgage may be worth exploring as part of your broader retirement and housing plan.

Eligibility requirements for reverse mortgages are put in place to help ensure the loan is a good fit for both the borrower and the home. While requirements vary by loan type, most reverse mortgages focus on factors like age, primary residence status, property eligibility, and the borrower’s ability to keep up with ongoing housing costs, such as taxes, insurance, and maintenance, when determining eligibility.

Understanding these factors can make it easier to decide whether a reverse mortgage aligns with your long-term financial goals.

If you’d like to explore your options, you can use our reverse mortgage calculator to get an estimate of how much you may qualify for, or call to speak with a reverse mortgage specialist who can answer questions and walk you through next steps.

Frequently asked questions

How difficult is it to get a reverse mortgage?

For many homeowners, determining eligibility for a reverse mortgage is a fairly straightforward process if they meet age, home, and occupancy requirements. Unlike traditional loans, reverse mortgage lenders don’t base approval on whether you have enough income to make monthly mortgage payments.

Instead, the process focuses on confirming eligibility, completing required counseling (for HECMs), and showing you can continue to pay property taxes, homeowners insurance, and maintain the home over time.

Why would a reverse mortgage be denied?

A reverse mortgage may be denied if the borrower does not meet age or residency requirements, the home is not an eligible property type, you lack enough equity, or required repairs are not completed by closing.

Denials can also occur if the borrower cannot demonstrate they can maintain ongoing obligations, like property taxes, homeowners insurance, HOA dues, and maintenance, which are required to keep the loan in good standing.

What is the best age to get a reverse mortgage?

There isn’t one best age to get a reverse mortgage because individual needs and goals vary. However, the amount of money you’re able to get with a reverse mortgage generally increases with age, so older borrowers may qualify for higher balances.

As a general rule of thumb, many homeowners consider a reverse mortgage when their retirement income changes, housing costs rise, or they decide to stay in their home long term.

Who owns your house in a reverse mortgage?

You continue to own your home when you take out a reverse mortgage, just as you would with any other mortgage loan. The property remains in your name, and ownership does not change unless the borrower or their heirs sell(s) the home to pay off the reverse mortgage, or the loan becomes due and is not repaid, so the home is transferred through foreclosure or a deed in lieu of foreclosure.

Can you sell a house that has a reverse mortgage?

Yes, you can sell a home after taking out a reverse mortgage. After the property is sold, the loan balance is paid off using proceeds from the sale, just as it would be with a regular mortgage. If the sale price is greater than the loan balance and closing costs, the remaining equity belongs to you or your heirs. Selling the home is one of the most common ways to repay a reverse mortgage.

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This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For tax advice, please consult a tax professional. For more information about whether a reverse mortgage fits into your retirement strategy, you should consult your financial advisor.