Quick Answer
A HECM generally requires borrowers to be 62 or older, have sufficient equity, occupy an eligible primary residence, complete HUD-approved counseling and pass a financial assessment. Lenders review income, expenses, assets and credit history. Existing mortgages must be paid off at closing. Some private California programs start at 55 and have different rules.
How to qualify for a reverse mortgage: steps to take
For a U.S. FHA-insured HECM, prepare for a lender's review in this order. A checklist or calculator cannot approve your loan.
- 1Confirm the program and ages. HECM borrowers must be 62 or older. Disclose a younger spouse; some private programs start at 55 but follow different rules.
- 2Review your home, mortgage payoff and equity with the lender. Include other liens, property condition and any funds you could contribute at closing.
- 3Gather income, asset, debt, property-tax and insurance records. Explain missed payments and federal debts rather than leaving them out.
- 4Complete independent HUD-approved HECM counseling. You choose the agency; ask about fees, assistance and language availability.
- 5Submit the required documents and allow the lender to complete the appraisal, title review and financial assessment. Resolve any conditions before closing.
After closing, you must still meet occupancy, tax, insurance and maintenance obligations. Interest and charges can increase the debt. Default can make the loan due and lead to foreclosure.
What are the main HECM requirements?
Use this checklist before requesting a lender review. It is not an approval:
- HECM borrowers must be at least 62.
- The home is an eligible primary residence and meets property standards.
- Equity and any funds you bring cover the required payoff, costs and reserves.
- Income, expenses, assets and credit history satisfy the financial assessment.
- Any delinquent federal debt is resolved as required by the program.
- Independent HUD-approved HECM counseling is completed.
Requirement 1: Age — 62 or Older
HECM borrowers must be at least 62. A younger spouse may qualify as an eligible non-borrowing spouse, with conditional protections rather than borrower status. Borrowing capacity uses the age of the youngest borrower or eligible non-borrowing spouse. Some private California programs start at 55 and are not FHA-insured.
Requirement 2: Primary Residence
The home must be your primary residence, not a vacation or investment property. A permanent move can make the loan due, subject to co-borrower and eligible spouse protections. An absence lasting more than 12 consecutive months for health reasons can also trigger repayment when no other borrower remains. Ask the servicer about the rules before an extended absence.
Requirement 3: Sufficient Equity
There is no single equity percentage that guarantees eligibility. The existing mortgage must be paid off at closing using HECM proceeds and, if necessary, your own funds. Costs and required reserves also affect the calculation. A loan can be useful for paying off the old mortgage even with little cash left, but positive estimated proceeds alone do not mean you qualify.
Estimate proceeds before requesting a lender review
Requirement 4: Property Type
Eligible homes can include single-family residences, two-to-four-unit properties where you occupy one unit, qualifying manufactured homes and eligible condominiums. Condominium eligibility may involve project approval or an FHA single-unit approval where permitted. The lender must confirm property standards and required repairs; not every home qualifies.
Requirement 5: Financial Assessment
The lender reviews documented income, living expenses, debts, assets and credit history to assess whether you can meet ongoing obligations. This includes property taxes, homeowners insurance and applicable HOA charges. A Life Expectancy Set-Aside (LESA) may reserve some proceeds for taxes and insurance, reducing funds available for other uses. It does not guarantee approval or resolve every financial shortfall. Ask about the lender's credit requirements rather than assuming credit does not matter.
Requirement 6: HUD-Approved Counseling
HECM borrowers must complete independent counseling through a HUD-approved agency. Ask about scheduling, fees, possible fee assistance and language availability. You are free to choose the agency. Counseling explains the loan and alternatives; it does not guarantee approval.
Find independent HUD-approved counseling
Can I qualify with Social Security or retirement income?
Possibly. Retirement and receiving Social Security do not automatically qualify or disqualify you. The lender reviews documented income, living expenses, debts, assets and credit history, including your ability to meet property charges. A required life-expectancy set-aside (LESA) may reserve proceeds for taxes and insurance, but is not an automatic solution to every shortfall.
What documents should I prepare?
Start with identification, a recent mortgage statement, property-tax and insurance bills, income documentation and asset statements. Tell the lender about federal debt, liens, payment difficulties and a younger spouse early. The lender determines what additional documents are needed.
Use the reverse mortgage application document checklist
Equity example: owning $400,000 of equity is not a $400,000 loan
Suppose your home is worth $600,000 and you owe $200,000. Your equity is $600,000 − $200,000 = $400,000. That is your ownership value, not the amount a reverse lender will advance. HECM borrowing capacity also depends on age, the applicable interest rate and the program's value limit.
For illustration only, suppose a lender calculated $280,000 of gross capacity, with a $200,000 mortgage payoff, $15,000 in financed costs and $20,000 in required reserves. That leaves $45,000: $280,000 − $200,000 − $15,000 − $20,000. These are hypothetical figures, not a quote or qualification threshold. First-year disbursement limits and the payout plan can further restrict access; $45,000 is not a promise of cash at closing.
Estimate reverse mortgage proceeds—not loan approval
What can prevent you from qualifying?
A home that is not your primary residence, insufficient proceeds and personal funds to cover required obligations, unresolved federal-debt issues, ineligible property or an unsuccessful financial assessment can stop a HECM. Some problems can be addressed, such as required repairs or missing documents; others mean the loan does not fit.
Ask the lender to identify the actual condition, the documents needed and whether it can be resolved. A set-aside is not a guarantee of approval, and you should not pay someone who promises to bypass HUD counseling or lender review.
Review common reverse mortgage disqualifiers
Qualifying for HECM is not the same as qualifying for jumbo
HECMs are FHA-insured and require borrowers to be at least 62. Some private or jumbo reverse mortgages accept borrowers from 55 in eligible states. Their property, credit, equity and spouse rules vary. Do not assume an age-55 product uses HECM underwriting or FHA insurance.
Check the verified age-55 versus age-62 rules
