Who Qualifies for a Reverse Mortgage?
Age
All borrowers on title must be 62 or older. A younger spouse may be a non-borrowing spouse with specific protections if properly disclosed.
Occupancy
The home must be your primary residence. You cannot use a reverse mortgage on a second home or investment property.
Equity
You need sufficient equity after paying off existing liens. Many borrowers use a reverse mortgage to eliminate their forward mortgage payment.
Property type
Eligible: single-family, FHA-approved condos, multi-unit (up to 4) if you live in one unit. Manufactured homes must meet FHA standards.
Financial assessment
Lenders verify you can pay property charges (taxes, insurance, HOA, maintenance). Failure to pay these can lead to foreclosure.
Counseling
HUD-approved counseling is mandatory before application.
When this is NOT a good fit
- You cannot reliably pay property taxes, homeowners insurance, and maintenance
- You plan to move within a few years
- You need every dollar of home equity preserved for heirs
- Medicaid or SSI eligibility depends on keeping assets below program limits (consult an elder law attorney)
- You were pressured by a salesperson without time to research alternatives