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Reverse mortgage requirements: Are you eligible?
In this article:
- What are the requirements for a reverse mortgage?
- How do reverse mortgage requirements vary by reverse mortgage type?
- Why do reverse mortgages have eligibility requirements?
- Age requirements
- Home equity requirements
- Property requirements
- Financial requirements
- What are reverse mortgage counseling requirements?
- What is the reverse mortgage application process?
- How have reverse mortgage requirements changed over time?
- What if you don't meet the reverse mortgage requirements?
- Other financing options to consider
- Next steps: Find out whether you may be eligible
- FAQs about reverse mortgage requirements
Quick answer: To be eligible for a reverse mortgage, you generally must meet age, home equity, property, and financial requirements. HECM borrowers must also complete a required session with a HUD-certified counselor.
Key points
Reverse mortgage requirements vary by loan type, with different rules for HECMs and proprietary reverse mortgages.
Meeting the initial eligibility requirements is only the first step. Borrowers must also continue to meet the loan’s ongoing obligations after closing.
HUD updated HECM eligibility rules in 2025, making non-permanent residents ineligible for FHA-insured reverse mortgages.
Today’s reverse mortgages have strict eligibility requirements that go beyond age alone. Lenders also consider factors such as your home equity, property, and financial readiness. Although eligibility requirements are similar across reverse mortgages, there are some differences between FHA-insured Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgages.
Whether you’re beginning your research or preparing to apply, understanding these requirements may help you determine whether a reverse mortgage is right for you. Before you decide, it’s important to understand current eligibility requirements, how the application process works, and what to do if you’re not yet eligible.
What are the requirements for a reverse mortgage?
Although eligibility criteria vary by loan type, most reverse mortgages share the same core requirements. These requirements typically include:
- Minimum age: You must be at least 62 for a HECM. Some proprietary reverse mortgages are available to eligible homeowners as young as 55, depending on the product and state.
- Primary residence: The home must be the place where you live most of the year.
- Home equity: There is no fixed home equity requirement, but borrowers generally need 50% to 60% home equity.
- Existing mortgage: For most reverse mortgages, any existing mortgage generally must be paid off at closing using reverse mortgage proceeds, your own funds, or a combination of both. Some proprietary second-lien reverse mortgages have different requirements.
- Eligible property: The home must meet the lender’s eligibility and appraisal requirements.
- Financial assessment: You must demonstrate that you can continue paying property taxes, homeowners insurance, homeowner association (HOA) dues (if applicable), and other required property charges.
- Counseling: HECM borrowers must complete counseling through a U.S. Department of Housing and Urban Development (HUD)-certified counseling agency.
- No delinquent federal debt: HECM borrowers generally cannot have delinquent federal debt, such as student loans or back taxes. Before closing, the debt typically must be paid in full or addressed through a repayment plan with the appropriate federal agency.
- Citizenship or residency: For most new HECMs, borrowers generally must be U.S. citizens or lawful permanent residents.
- Ongoing borrower responsibilities: After closing, the borrower must continue to live in the home as a primary residence, maintain the property, and meet all loan obligations.
How do reverse mortgage requirements vary by reverse mortgage type?
While HECMs follow FHA requirements, proprietary reverse mortgages are offered by private lenders and have their own eligibility criteria. Jumbo reverse mortgages are one type of proprietary reverse mortgage designed primarily for higher-value homes. The table below compares several key eligibility differences.
| Eligibility criterion | HECM | Proprietary reverse mortgage | Single-purpose reverse mortgage | Jumbo proprietary reverse mortgage |
| Who it’s for | Homeowners seeking an FHA-insured reverse mortgage | Homeowners who may not qualify for a HECM or who need greater flexibility | Homeowners who need funds for a specific approved expense, such as repairs or property taxes | Homeowners with higher-value properties who may need access to more equity |
| Minimum age | 62+ | Varies by product and state; some products may begin at age 55 | Varies by program | Varies by lender and product; certain HomeSafe products may begin at age 55 |
| Counseling | Required through a HUD-certified counseling agency | Varies by lender and product, but often required | Requirements vary by program | Requirements vary by lender and product |
| Property requirements | Eligible homes must meet FHA property requirements | Requirements vary by lender and product | Requirements vary by program | Requirements vary by lender and product |
| Loan limits | The 2026 HECM maximum claim amount is $1,249,125 | Limits vary by lender and product | Loan amounts are generally limited to the approved purpose and program rules | Certain HomeSafe products offer loans of up to $4 million |
| Financial assessment | Required | Requirements vary by lender and product | Requirements vary by program | Requirements vary by lender and product |
How do HomeSafe and HomeSafe Second differ?
HomeSafe and HomeSafe Second are proprietary reverse mortgages offered by Finance of America, but they handle an existing mortgage differently.
| Product | Key eligibility and loan distinction |
| HomeSafe | A proprietary jumbo reverse mortgage that generally pays off an existing mortgage at closing. Certain HomeSafe products may be available beginning at age 55 and offer loans of up to $4 million, although minimum ages and availability vary by state. |
| HomeSafe Second | A second-lien reverse mortgage that may allow eligible homeowners to retain their existing first mortgage. Borrowers must continue making required first-mortgage payments and meet the ongoing obligations of both loans. HomeSafe Second is generally available beginning at age 55, depending on the product and state. |
For certain HomeSafe products, the minimum age is 60 in Massachusetts, New York, and Washington and 62 in North Carolina and Texas.
The borrower must meet all loan obligations, including meeting those under the first lien mortgage, 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.
Why do reverse mortgages have eligibility requirements?
Reverse mortgage requirements are designed to help protect borrowers while ensuring the loan is used as intended—allowing eligible older homeowners to access home equity without having to move. Rather than focusing solely on age or home equity, the requirements help ensure borrowers understand their responsibilities before moving forward. For example, HECM borrowers must complete HUD-certified counseling, which explains how reverse mortgages work, the responsibilities that continue after closing, and alternative financing options that may better fit their needs.
For HECMs, these standards also help keep the FHA insurance program financially strong so it can continue serving eligible homeowners in the future. Financial assessments and other eligibility requirements promote responsible lending while helping reduce the risk of loan default.
To learn more, please visit the Consumer Financial Protection Bureau’s (CFPB’s) “Reverse Mortgage: A Discussion Guide.”
The following sections explain each key reverse mortgage requirement in more detail.
Age requirements
Age is one of the first reverse mortgage requirements lenders evaluate. For FHA-insured HECMs, all borrowers must be at least 62 years old, according to the CFPB. Some proprietary reverse mortgages are available to eligible homeowners as young as 55, although minimum ages vary by product and state.
Age also affects how much you may be eligible to borrow. If more than one borrower is applying, the youngest borrower’s age is generally used to determine the available loan amount. Because younger borrowers are generally expected to remain in the home longer, they may be eligible for a smaller loan amount than older borrowers with otherwise similar circumstances.
If one spouse doesn’t meet the minimum age requirement, the loan may still move forward with that individual treated as an eligible non-borrowing spouse. Eligibility depends on the loan type and individual circumstances, and important protections and limitations apply.
Home equity requirements
There is no set home equity percentage required to be eligible for an FHA-insured HECM, but borrowers generally need 50% to 60% home equity. Any existing mortgage balance typically must be paid off at closing using reverse mortgage proceeds, your own funds, or a combination of both. Proprietary reverse mortgages may require more equity than a HECM, although requirements vary by lender.
Jumbo reverse mortgages, which are another type of proprietary reverse mortgage designed for higher-value homes, typically have the highest equity requirements. Because the loan amounts tend to be larger, lenders generally require homeowners to have more equity at the start of the loan.
As part of the application process, your lender will order a home appraisal to determine your home’s current market value. Lenders also consider your loan-to-value (LTV) ratio, which compares your outstanding mortgage balance to your home’s appraised value, when evaluating your available home equity and determining how much you may be eligible to borrow.
→ Learn more: Reverse mortgage loan-to-value ratios explained
Property requirements
Not every home is eligible for a reverse mortgage. In addition to serving as your primary residence, the property must meet the lender’s eligibility requirements and, for HECMs, FHA’s Minimum Property Standards (MPS).
Eligible property types generally include:
- Single-family homes
- FHA-approved condominiums
- Manufactured homes that meet FHA requirements
- Two- to four-unit properties, provided you live in one of the units as your primary residence
Property types that aren’t eligible for HECMs include vacation homes, investment properties, and mobile homes located on leased land.
As part of the application process, your lender will order an appraisal to determine whether the property meets the lender’s requirements For HECMs, the appraisal also evaluates whether the home meets MPS, which are intended to help ensure the property is safe, habitable, and structurally sound. For example, the home generally must have working utilities, a functional heating system, a safe water supply, and no significant health or safety hazards. If the appraisal identifies issues that don’t meet these standards, certain repairs may be required before the loan can close.
To remain eligible after closing, the home must continue to be your primary residence. Generally, that means living there for more than six months each year, as well as completing an annual occupancy certification, paying property taxes, maintaining homeowners insurance, and keeping the home in good condition.
Financial requirements
Reverse mortgages don’t have the same income and credit requirements as traditional mortgages, but lenders still evaluate your financial situation. Rather than determining whether you can make monthly mortgage payments, they assess whether you’re able to continue paying property taxes, homeowners insurance, and other required property charges.
As part of the financial assessment, lenders typically review:
- Income from sources such as Social Security, pensions, retirement accounts, or employment
- Your credit history
- Available assets and cash reserves
- Your ability to continue paying:
- Property taxes
- Homeowners insurance
- HOA dues, if applicable
- Property maintenance and other required charges
HECM borrowers also generally cannot have delinquent federal debt. Before closing, it typically must be paid in full or resolved through a repayment plan with the appropriate federal agency.
Reverse mortgages generally do not require a minimum credit score or traditional employment income.
What is a Life Expectancy Set-Aside (LESA)?
If the financial assessment indicates you may have difficulty paying future property charges, your lender may require a LESA.
A LESA reserves a portion of your available reverse mortgage proceeds to pay future property taxes, homeowners insurance, and, in some cases, other required property charges on your behalf. While this reduces the amount of loan proceeds available to you at closing, it may help you remain current on these obligations and reduce the risk of default.
A LESA isn’t required for every borrower. Whether one is necessary depends on the results of your financial assessment and your individual circumstances.
What are reverse mortgage counseling requirements?
Before a HECM can close, borrowers must complete HUD-certified reverse mortgage counseling. Borrowers are generally responsible for paying the counseling fee, which typically costs around $125.
During the session, the counselor explains:
- How a reverse mortgage works
- Your responsibilities as a borrower
- What causes the loan to become due and payable
- The costs and fees associated with the loan
- How a reverse mortgage may affect your heirs
- Alternatives to a reverse mortgage
- Whether you’re likely to be able to meet the loan’s ongoing obligations
The counselor does not work for your lender and does not recommend specific reverse mortgage products. Instead, the goal is to help you understand your options so you can make an informed decision.
After completing the session, you’ll receive a counseling certificate. The certificate is generally valid for 180 days, and you must provide it to your lender as part of the application process.
Proprietary reverse mortgages may have different counseling requirements depending on the lender and state.
What is the reverse mortgage application process?
Although the exact process varies by lender, most reverse mortgages follow the same general steps. At Finance of America, the process from application to closing typically takes 30 to 45 days. However, the timeline may be longer depending on factors such as the appraisal and underwriting.
| Step | What happens |
| Initial eligibility review | A lender reviews your age, home equity, property, and other basic eligibility requirements. |
| HUD-certified counseling | HECM borrowers complete independent counseling and receive a counseling certificate. |
| Application and appraisal | You submit your application, and the lender orders a home appraisal to determine your home’s value. |
| Financial assessment | The lender reviews your income, credit history, assets, and ability to continue paying required property charges as part of the financial assessment and underwriting process. |
| LESA determination (if required) | If the financial assessment indicates you may have difficulty paying future property charges, the lender may require a LESA to help cover those costs. |
| Title review | The lender verifies ownership and identifies any existing liens or mortgages that must be addressed before closing. |
| Closing | You sign the loan documents, and any existing mortgage is paid off using the reverse mortgage proceeds, your own funds, or a combination of both, if applicable. |
| Three-day right of rescission | Reverse mortgage funds are generally disbursed after a three-business-day waiting period known as the right of rescission. This federal consumer protection gives you one final opportunity to cancel the loan without penalty before funds are disbursed. |
| Loan disbursement | Once the rescission period ends, any remaining reverse mortgage funds are disbursed according to the payout option you selected. |
How have reverse mortgage requirements changed over time?
Reverse mortgage rules and eligibility requirements have evolved over the years to strengthen borrower protections and promote responsible lending. While the core eligibility requirements have remained largely consistent, HUD has introduced additional safeguards, and proprietary reverse mortgage products have expanded eligibility for some homeowners.
The timeline below highlights several of the most significant changes to reverse mortgage eligibility requirements and borrower protections.
| Year | What changed |
| 1989 | Congress established the FHA-insured HECM program with core eligibility requirements, including minimum age, primary residence, and counseling. |
| 2007–present | Proprietary reverse mortgages expanded, allowing some lenders to offer loans to eligible homeowners as young as 55, depending on the product and state. |
| 2014 | HUD implemented financial assessment requirements to help determine whether borrowers could continue paying property taxes, homeowners insurance, and other required property charges. |
| 2015 | HUD expanded protections for eligible non-borrowing spouses, allowing some surviving spouses to remain in the home under certain circumstances. |
| 2025 | New HECM eligibility requirements took effect for FHA case numbers assigned on or after May 25, 2025, generally limiting eligibility to U.S. citizens and lawful permanent residents. |
| Ongoing | HUD continues updating counseling standards and consumer education requirements to help borrowers make informed decisions. |
Because reverse mortgage rules may change over time, it’s important to confirm your eligibility with your lender before applying.
What if you don’t meet the reverse mortgage requirements?
Not meeting one of the eligibility requirements doesn’t necessarily mean a reverse mortgage will never be an option for you. You may become eligible later or decide to explore another financing solution that better fits your needs.
The next steps depend on why you don’t meet the requirements. Here are some common situations and what they may mean for your future options:
You’re under the minimum age
If you don’t yet meet the age requirement, you may need to wait until you become eligible. Depending on your age and state, a proprietary reverse mortgage may also be worth exploring if it offers a lower minimum age than a HECM.
You don’t have enough home equity
Building additional equity over time or paying down your mortgage balance may improve your eligibility. As your available home equity increases, you may also be able to access more loan proceeds if you become eligible.
Your property isn’t eligible
Some properties don’t meet reverse mortgage requirements because of their type, condition, or occupancy status. In some cases, completing required repairs or moving to an eligible property may make a reverse mortgage possible later.
→ Learn more: Reverse mortgage on a condo
You don’t pass the financial assessment
If the financial assessment identifies concerns about your ability to meet ongoing property-related obligations, your lender may require a LESA. In other situations, improving your financial profile or resolving delinquent federal debt may help address those concerns.
Other financing options to consider
If you don’t meet the requirements for a HECM, another reverse mortgage product or home-equity option may be an option. The right choice depends on your age, financial priorities, available home equity, and whether you want to keep your existing mortgage.
| Option | Existing mortgage | Monthly payments | May be a good fit if… |
| HomeSafe | Generally paid off at closing | No monthly mortgage payments* | You have a higher-value home and want to access more home equity |
| HomeSafe Second | Keep existing first mortgage | Continue making required first-mortgage payments | You want to keep your existing first mortgage while accessing home equity |
| Home equity line of credit (HELOC) | Keep existing mortgage | Monthly payments required | You want a revolving line of credit secured by your home equity |
| Home equity loan** | Keep existing mortgage | Fixed monthly payments | You want a lump sum with predictable monthly payments |
| Cash-out refinance | Replaced with a new mortgage | Monthly payments on the new mortgage | You want to refinance your mortgage while accessing home equity |
| Downsizing | Home is sold | Depends on your next home purchase | You want to reduce housing costs or move to a smaller, more accessible home |
*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, and 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.
**Finance of America does not currently offer home equity loans.
→ Take a closer look: Reverse mortgage vs HELOC vs home equity loan
Next steps: Find out whether you may be eligible
Understanding reverse mortgage requirements is only the first step. The next step is finding out whether you’re eligible and how much home equity you may be able to access.
Finance of America’s reverse mortgage calculator provides an estimate based on factors such as your age, home value, and location. It can be a helpful starting point for understanding your potential eligibility and available home equity before speaking with a lending specialist.
→ Try Finance of America’s reverse mortgage calculator
FAQs about reverse mortgage requirements
What are the three main requirements for a reverse mortgage?
The three primary eligibility requirements are age, home equity, and living in an eligible property as your primary residence. HECM borrowers must also complete counseling through a HUD-certified counseling agency, and lenders conduct a financial assessment before the loan can close.
How difficult is it to get a reverse mortgage?
For many homeowners, determining eligibility is straightforward if they meet the age, home equity, property, and occupancy requirements. Instead of evaluating your ability to make monthly mortgage payments, lenders assess whether you’re likely to continue paying property taxes, homeowners insurance, and other required property charges.
Why would a reverse mortgage be denied?
A reverse mortgage may be denied if you don’t meet the age, home equity, property, or residency requirements. Denials may also occur if required repairs aren’t completed or the financial assessment indicates you may not be able to meet your ongoing loan obligations.
If a lender turns me down, can I try again or apply somewhere else?
Yes, depending on the reason for the denial. If the issue involves lender-specific requirements, another lender may have different guidelines. If the denial is based on HECM program requirements, you’ll generally need to resolve the underlying issue before reapplying.
Can I get a reverse mortgage if I still have a mortgage?
Yes. You don’t need to own your home outright, but you generally must have enough home equity to pay off your existing mortgage when the reverse mortgage closes. Some proprietary second-lien reverse mortgages, such as HomeSafe Second, may allow eligible borrowers to keep their existing first mortgage.
The borrower must meet all loan obligations, including meeting those under the first lien mortgage, 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.
Can my spouse stay in the home if they’re under 62?
In some cases, yes. If one spouse doesn’t meet the minimum age requirement, it may still be possible to obtain a HECM with that individual treated as an eligible non-borrowing spouse. Under certain circumstances, eligible non-borrowing spouses may be able to remain in the home after the borrowing spouse dies.
About the author
is a Senior Web Content Writer at Finance of America and a journalist with more than 20 years of experience specializing in business, and technology. Her work has been published in The Wall Street Journal, The Financial Times, and numerous other leading outlets.
Disclaimer
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.
