Quick Answer
To qualify for a HECM reverse mortgage you must be at least 62, own your home and live in it as your primary residence, have substantial equity, complete a HUD-approved counseling session, and pass a financial assessment confirming you can keep up with property taxes and insurance. There is no minimum credit score, minimum income, or employment requirement.
Requirement 1: Age — 62 or Older
Every borrower listed on the loan must be at least 62 years old. This is a hard federal requirement with no exceptions. If you are 62 and your spouse is 59, your spouse cannot be listed as a borrower — though they can be designated a Non-Borrowing Spouse with specific protections. If both spouses are 62+, both should be listed on the loan. The loan amount is always calculated based on the youngest borrower's age.
Requirement 2: Primary Residence
The home must be your primary residence — the place where you live most of the year. Vacation homes, rental properties, and second homes do not qualify. You must certify annually that the home remains your primary residence. If you permanently move out (to a care facility, to live with family), the loan becomes due. Temporary absences of up to 12 months for health reasons do not trigger default.
Requirement 3: Sufficient Equity
There is no minimum equity percentage required by HUD, but you must have enough equity to pay off any existing mortgage using your reverse mortgage proceeds, cover closing costs, and have some net proceeds remaining. In practice, most scenarios require at least 40–50% equity. The higher your equity and the older you are, the more you can access. A home with a large existing mortgage may result in little or no remaining proceeds after payoff — but the loan may still eliminate your monthly payment.
Requirement 4: Property Type
Eligible property types include: single-family homes, FHA-approved condominiums, manufactured homes meeting FHA standards, and 2–4 unit properties where you occupy one unit. Not eligible: commercial property, co-ops, vacation homes, and condos not FHA-approved. For condos not approved by FHA, some proprietary reverse mortgages fill this gap — worth asking your broker about.
Requirement 5: Financial Assessment
Lenders perform a financial assessment to evaluate your ability to meet ongoing obligations — property taxes, homeowners insurance, and HOA fees. They review: income and income stability, credit history (late tax and insurance payments are the main concern, not your FICO score), and your history of meeting housing obligations. If the assessment identifies risk, a Life Expectancy Set-Aside (LESA) may be required, reserving funds from your proceeds to cover future tax and insurance payments automatically.
Requirement 6: HUD-Approved Counseling
All HECM borrowers must complete an independent counseling session with a HUD-approved housing counselor before applying. The session — typically 60–90 minutes by phone — covers how reverse mortgages work, your rights as a borrower, alternatives, and any specific concerns you have. The fee is typically $125–$250 and may be waived for low-income borrowers. We will refer you to a qualified HUD counselor and can answer questions about what to expect.
What Does NOT Affect Your Eligibility
The following do not disqualify you: your income level (Social Security only is fine), your credit score (no minimum), your existing mortgage balance (as long as proceeds cover it), being retired, your savings and investment balances, and your health status. This is a major advantage for seniors whose limited income would disqualify them from a traditional mortgage, HELOC, or cash-out refinance.
