Reverse Mortgage Qualification, Eligibility & Requirements

The basic requirements to qualify for a reverse mortgage loan include: the youngest borrower on title must be at least 62 years old, live in the home as their primary residence and have sufficient home equity. Borrowers must also meet financial eligibility criteria as established by HUD.

The amount you can access from your home equity is based on a Federal Housing Administration (FHA) calculation that considers among others, the following factors:

• Age of the youngest homeowner: Age 61+
• Current value of the property:  Any value is okay as long as it has 50%-60% equity
• Balance on existing mortgage loans;  Balance on your existing mortgage should be about 40%-50%

Frequently Asked Questions Regarding Reverse Mortgage Eligibility

• Can a homeowner that has a mortgage still get a reverse mortgage loan?  Yes. Many people who obtain a reverse mortgage loan use it to pay off their existing mortgage and eliminate monthly mortgage payments.¹
• Does every homeowner over age 62 qualify?  No. If you are 62 years of age & your wife or partner is younger than 62 year of age, you can still get a reverse mortgage.
• What if there is too little home equity to qualify?  If there is too little equity in your house you might not qualify for a reverse mortgage.  Many people who want a reverse mortgage loan may not have enough equity in their home to qualify or may not meet other eligibility requirements. A “shortfall” means that the reverse mortgage loan would not generate enough loan proceeds to cover the existing mortgages on the home. In this situation, the homeowner cannot get a reverse mortgage loan until the balance of their existing mortgage is lowered or paid off. If they have money available, they can “pay down” their mortgage balance to qualify for the reverse mortgage loan.

To assist you in better understanding this type of loan we suggest you read our What is a Reverse Mortgage page or look into calculating how much you may be able to receive using our free reverse mortgage calculator.

¹You must still live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.