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Are you a homeowner considering a reverse mortgage to bolster your retirement finances? Understanding the eligibility criteria and requirements is crucial to make an informed decision. In this short blog, we’ll guide you through the process of qualifying for a reverse mortgage.

Age and Homeownership

The most fundamental eligibility requirement for a reverse mortgage is age and homeownership. To qualify, you must be at least 62 years old and own your home outright or have a significant amount of equity in it. The home in question must also serve as your primary residence.

Home Equity

The amount of home equity you have is a significant factor in determining your eligibility and how much you can borrow. Generally, the more equity you have, the higher the loan amount you can access. Your home’s appraised value will play a crucial role in this calculation.

Financial Assessment

While there are no specific income or credit score requirements for a reverse mortgage, lenders do conduct a financial assessment to ensure you can meet ongoing obligations such as property taxes, insurance, and maintenance. If the lender determines that you may struggle to meet these financial responsibilities, they may set aside a portion of your loan proceeds to cover these expenses.

Counseling Session

Before applying for a reverse mortgage, you are required to attend a counseling session with a HUD-approved counselor. This session aims to educate you about the benefits and risks of a reverse mortgage, ensuring you make an informed decision.

Property Type

The type of property you own also matters. Single-family homes, multifamily homes with up to four units (one of which you must occupy), and certain HUD-approved condominiums are generally eligible for reverse mortgages. Manufactured homes may be eligible if they meet specific HUD requirements.

Loan Types

There are different types of reverse mortgages available, with the Home Equity Conversion Mortgage (HECM) being the most common. HECMs are insured by the Federal Housing Administration (FHA) and have specific eligibility criteria. Other proprietary reverse mortgages offered by private lenders may have different requirements.


To maintain your reverse mortgage, you must continue to live in your home as your primary residence. If you move out for an extended period or sell the property, the loan may become due.