Quick Answer
To qualify for an FHA-insured HECM you must generally be 62 or older, own your home outright or have substantial equity, live in the home as your primary residence, complete independent HUD-approved counseling, and pass a financial assessment showing you can keep up property taxes, homeowners insurance, and upkeep. The property must be an eligible type (single-family, FHA-approved condo, 2–4 units you occupy, or a qualifying manufactured home) and meet FHA standards. There is no income or credit-score cutoff like a traditional loan, but the financial assessment does review your history.
Borrower Requirements: Age and Primary Residence
The two non-negotiable borrower rules are age and occupancy. Every borrower on title must be at least 62 years old, and the home must be your principal residence — the place you live for the majority of the year. You cannot get a HECM on a second home, a vacation home, or a pure rental. If one spouse is under 62, the program may still be possible through non-borrowing-spouse protections, which we cover in a dedicated guide.
Equity Requirements: How Much You Need
There is no fixed dollar figure, but a HECM is designed for homeowners with significant equity. Many borrowers own their home free and clear; others still have a mortgage. What matters is that the reverse mortgage proceeds are enough to pay off any existing mortgage in full at closing — that payoff is mandatory. The amount you can borrow (the principal limit) is driven by the age of the youngest borrower, the home's value up to the FHA lending limit, and current interest rates.
The Financial Assessment
Since 2015, the FHA has required a financial assessment for every HECM. This is not a traditional income-and-credit approval, but the lender does review your income, assets, and credit history to confirm you can reasonably keep up the ongoing obligations.
- Your willingness to pay, shown by your history with property taxes, insurance, and other housing-related bills.
- Your capacity to pay, shown by income and assets relative to expenses.
- Any extenuating circumstances behind past late payments.
If the assessment raises concerns, the lender may require a Life Expectancy Set-Aside (LESA) — money carved out of the loan to pay future taxes and insurance for you. That is a safeguard, not a denial.
Required HUD Counseling
Every HECM borrower must complete a counseling session with an independent HUD-approved counselor before the loan can proceed. The counselor — who does not work for any lender — explains how the loan works, reviews alternatives, and confirms you understand your responsibilities. You receive a certificate afterward. This step protects you, and it is a firm federal requirement, not optional paperwork.
Property Requirements
The home itself has to qualify, too. Eligible property types include:
- Single-family homes and properties up to four units, as long as you occupy one unit.
- FHA-approved condominiums (or individual units that meet FHA single-unit approval).
- Manufactured homes that meet specific FHA construction and foundation rules.
- Homes that pass an FHA appraisal and meet minimum property standards.
The appraisal both sets the value used in your calculation and confirms the home meets FHA safety and condition standards.
Your Ongoing Responsibilities After Closing
A HECM has no required monthly mortgage payment, but it is not obligation-free. To keep the loan in good standing you must continue to live in the home as your primary residence, pay your property taxes on time, keep homeowners insurance in force, pay any HOA dues, and maintain the property in reasonable condition. If you stop meeting these — for example, by letting taxes go unpaid or by moving out permanently — the loan can become due and payable.
What Is Not Required
It is just as useful to know what the HECM does not demand. There is no minimum credit score and no minimum income threshold the way a traditional mortgage has. You are not required to make monthly mortgage payments. And because the HECM is non-recourse, neither you nor your heirs will ever owe more than the home is worth when the loan is repaid — the FHA insurance covers any shortfall.
How to Confirm You Qualify
The fastest way to know exactly where you stand is to have your specifics reviewed: your age, your home, any remaining mortgage, and your tax-and-insurance history. For a clear, no-pressure walk-through of the HECM guidelines as they apply to your situation, contact Miguel A. Vazquez, NMLS #401212, at Reverse Mortgage Plus — a licensed California broker who can explain everything in English or Spanish.
