Standard Lenders

Requirements for a Reverse Mortgage

Requirements for a Reverse Mortgage

A government-insured reverse mortgage loan or Home Equity Conversion Mortgage (HECM) can help you turn a percentage of your home equity into cash. Homeowners 62 years and older can utilize a reverse mortgage loan as a tool to lower their debt, pay off medical bills, and afford retirement comfortably without depending on another party.

Here are a few requirements for a reverse mortgage:

  • Homeowners must be 62 and older since HECMs are designed to assist seniors in retirement.
  • The borrower must be on the home’s title and have a low remaining balance or have their home paid off.
  • Borrowers must live in the home as their primary residence, meaning they cannot live in another home for more than 12 consecutive months.
  • The borrower must complete a HUD-approved counseling session from a third-party agency to learn about the pros and cons of your options.

Reverse mortgage loan eligibility also depends on your home type. Your home must be:

  • An owner-occupied single-family or two- to four-unit home. If you have a two- to four-unit home, then one of the units must be your primary residence.
  • A HUD-approved condominium. For more information visit
  • A manufactured home that meets FHA requirements.

Financial requirements for a reverse mortgage:

  • Homeowners must be able to continue paying your insurance, home maintenance costs, property taxes, and HOA fees (if applicable).
  • A borrower can’t be delinquent on federal debt.