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A reverse mortgage eligibility checklist for an FHA-insured Home Equity Conversion Mortgage (HECM) starts with four tests: every borrower must be at least 62 at closing, the home must be the borrower’s principal residence, the available equity must cover any mortgage payoff, and the borrower must be able to keep paying taxes, insurance and other property charges. HUD-approved counseling, a lender’s financial assessment and an acceptable property are also required. Meeting these conditions does not guarantee approval.
This guide covers HECMs, the reverse mortgage covered by most federal consumer guidance. Proprietary reverse mortgages are private, non-federally insured products with potentially different age, property, occupancy and underwriting rules. Ask a HUD-approved counselor and the lender to confirm the exact program before relying on this checklist.
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A HECM is insured by the Federal Housing Administration and lets an eligible homeowner convert part of home equity into loan proceeds. The balance generally becomes due when the borrower dies, sells the home, permanently moves out or otherwise fails to meet the loan terms. The home remains the borrower’s responsibility: taxes, insurance, maintenance and other required charges still have to be paid.
The Consumer Financial Protection Bureau’s reverse-mortgage key terms distinguish federally insured HECMs from proprietary reverse mortgages. Do not assume a private product follows the federal HECM rules below.
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What are the basic HECM eligibility requirements?
Use this as a screening list, not an approval promise:
- Age: Every HECM borrower is at least 62 years old on the closing date. HUD states that there is no maximum borrower age.
- Occupancy: The property is the borrower’s principal residence—the home where the borrower normally lives for most of the year.
- Equity: The borrower owns the home outright or has enough equity for the HECM to pay off existing liens at closing.
- Eligible property: The home falls within an eligible category and meets the lender’s condition and appraisal requirements.
- Financial capacity: The borrower can pay property taxes, homeowners or required flood insurance, maintenance and other ongoing charges.
- Federal debt: Delinquent federal obligations must be addressed; the lender may require repayment from loan proceeds.
- Counseling: Each prospective borrower completes counseling with a HUD-approved reverse-mortgage counselor before proceeding.
- Loan obligations: The borrower agrees to occupy, maintain and insure the property and to comply with the loan documents.
A lender combines these factors with the property appraisal, title review, requested loan amount and the protections that apply to any spouse who is not a borrower.
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How old do you have to be for a reverse mortgage?
For a HECM, all borrowers must be 62 or older as of closing. HUD’s FHA Single Family Housing Policy Handbook 4000.1 says, “All Borrowers must be at least 62 years of age as of the Closing Date. There is no maximum age limit for a Borrower.”
The age test applies to each person who will be a borrower. A younger spouse cannot be added as a HECM borrower until reaching 62, but may qualify for protections as a non-borrowing spouse if the applicable conditions are met. A private, proprietary reverse mortgage may set a different minimum age, so verify that product separately rather than treating 62 as a universal industry rule.
Does the home have to be your primary residence?
Yes. The home must be your principal residence. The CFPB describes this as the home where you live “the majority of the year.” A vacation home, second home or investment property should not be presented as satisfying the HECM occupancy requirement.
Occupancy is an ongoing obligation, not merely a statement made at application. Extended absences, a permanent move or another change that means the property is no longer your principal residence can affect the loan. Tell the servicer about changes in residence and review the loan’s occupancy provisions before moving.
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How much equity do you need?
There is no single equity-percentage threshold that guarantees HECM eligibility for every applicant. In practical terms, you need enough value in the home for the HECM proceeds to pay off an existing mortgage and any other liens required at closing, while leaving a permitted amount available to you.
The amount you can access depends on factors such as the youngest borrower’s age, the appraised property value, the applicable lending limit, interest-rate assumptions and the loan’s fees and charges. Because the available data does not establish one universal percentage, be wary of anyone promising approval after a simple “you need X percent equity” calculation.
Title must also be clear enough for the lender to insure the lien. A title problem, judgment or other encumbrance may need to be resolved before closing.
Can you qualify if you still have a mortgage?
Often, yes. An existing mortgage does not automatically disqualify you, but it generally must be paid off at closing. The payoff can come from HECM proceeds, your own funds or a combination of both. If the available proceeds are insufficient, you may need to bring cash, reduce the debt or consider another option.
Ask the lender for a written estimate of the payoff amount, including any other liens that must be cleared. Continue making the existing mortgage payments until the reverse mortgage closes and the lender confirms the payoff; an application or counseling certificate does not itself satisfy the old loan.
What types of property qualify?
Under current CFPB servicing procedures, eligible HECM categories include single-family homes, two- to four-unit properties, certain manufactured homes, condominiums and townhouses. Cooperative housing (co-ops) does not qualify for a HECM under the cited federal guidance.
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Category alone is not enough. The lender checks the property’s legal status, appraisal, condition, insurance, title and compliance with program standards. A condominium project or manufactured home, for example, may require additional documentation or fail the lender’s review even when the broad category appears eligible. The CFPB’s July 2026 reverse-mortgage procedures and the lender can confirm how the rules apply to a particular address.
Do you need income to qualify?
HECMs typically do not impose a conventional minimum-income requirement. However, the lender performs a financial assessment to determine whether you can meet ongoing obligations, especially property taxes, insurance, maintenance and repairs. Income, assets, credit history and existing debts can therefore matter even without a stated income floor.
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What property charges must you keep paying?
A reverse mortgage does not eliminate the homeowner’s continuing housing expenses. You remain responsible for property taxes, homeowners insurance and, when applicable, flood insurance. You also must keep the home in acceptable condition and pay ordinary maintenance and repair costs.
Failure to pay required charges can put the loan in default and may make the balance due. Before closing, make a realistic annual budget for taxes, insurance, utilities, repairs and any association charges. If those costs are difficult to cover now, discuss alternatives with the counselor rather than assuming the reverse mortgage will solve the cash-flow problem.
Is reverse-mortgage counseling required?
Yes. Prospective HECM borrowers must complete counseling with a HUD-approved reverse-mortgage counselor. Counseling is intended to explain the loan, costs, repayment triggers, alternatives and the effect on spouses and heirs; it is not a lender sales call.
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Use the session to ask about a home-equity loan, refinancing, selling and downsizing, or other ways to meet your goals. The Federal Trade Commission’s reverse-mortgage guidance also recommends considering alternatives and understanding that the lender will eventually be repaid from the home or other assets. Keep the counseling certificate and ask how long it remains valid for the lender you choose.
What happens if a spouse is younger than 62?
A spouse under 62 who is not a borrower may be treated as a non-borrowing spouse. That person does not receive the same status as a co-borrower, and continued occupancy protections depend on meeting the applicable HUD and loan conditions.
HUD warns that the loan may become due and payable after the borrower dies or becomes ineligible if the non-borrowing-spouse requirements are not met. Tell the counselor and lender about every spouse, marriage, separation and household arrangement before signing; a failure to disclose the relationship can create avoidable problems later.
How do you apply for a HECM?
Gather the following before contacting lenders:
- Government identification and proof of age for every prospective borrower.
- The deed, recent mortgage statement, payoff information and details of any other liens.
- Recent property-tax bills, homeowners or flood-insurance declarations and homeowners-association information, if applicable.
- Income, asset and debt records requested for the financial assessment.
- Information about all occupants and the marital status of each borrower.
- Manufactured-home, condominium or multi-unit documents when relevant.
- Start with HUD-approved counseling. Compare the counselor’s explanation with your objectives and alternatives, and obtain the required certificate.
- Request quotes from more than one lender. Ask each lender to identify interest-rate assumptions, fees, servicing arrangements, property restrictions, payoff requirements and the treatment of a non-borrowing spouse.
- Complete the application and financial assessment. Provide accurate debt, income, asset and occupancy information. Ask how federal debt delinquency or a history of late property-tax payments will be handled.
- Let the lender review the property. The appraisal, title search, insurance review and condition inspection determine whether the address meets HECM standards.
- Review the closing documents. Confirm the mortgage payoff, required set-asides, continuing charge obligations, repayment triggers and any spouse-related provisions before signing.
- Maintain the loan after closing. Keep the home as your principal residence, pay charges on time, maintain insurance and promptly report changes that could affect eligibility.
How are HECMs different from proprietary reverse mortgages?
HECMs have federal insurance and a defined HUD framework. Proprietary reverse mortgages are not federally insured and are generally aimed at higher-value homes, but their policies are not uniform.
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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minute| Question | FHA-insured HECM | Proprietary reverse mortgage |
|---|---|---|
| Federal insurance | FHA-insured | Not federally insured |
| Minimum age | 62 for every borrower at closing | Varies by lender and product |
| Occupancy | Principal residence required | Product-specific; verify in writing |
| Property rules | Federal categories and lender review apply | May permit different values or property types |
| Counseling | HUD-approved counseling required | Requirements vary; ask before applying |
| Spouse protection | HUD non-borrowing-spouse conditions may apply | Read the product’s contractual protections |
Because proprietary terms differ, compare the actual disclosures rather than using the HECM checklist as a substitute. The CFPB reverse-mortgage resource center is a useful starting point for questions to raise with a counselor.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can you use a reverse mortgage to buy a home?
Yes, an HECM for Purchase can help an eligible borrower age 62 or older buy a new principal residence. The borrower still must satisfy HECM age, counseling, property, occupancy, financial-assessment and ongoing-charge requirements, and must provide the required funds for the purchase transaction.
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The new home must become the borrower’s principal residence and remain properly maintained and insured. Ask the lender and counselor to distinguish this transaction from refinancing an existing home; the purchase structure, cash needed at closing and timing of occupancy are different. The CFPB explains the product in its guidance on using a reverse mortgage to buy a home.
What can prevent approval or create a problem later?
- Age shortfall: One proposed borrower is younger than 62 at closing.
- Wrong occupancy: The property is a second home, rental or another place where you do not live most of the year.
- Insufficient proceeds: The mortgage and liens cannot be paid off without additional funds.
- Ineligible property: The home is a co-op or fails title, appraisal, condition, insurance or program requirements.
- Unmanageable charges: The financial assessment indicates that taxes, insurance or maintenance are unlikely to be paid.
- Unresolved federal debt: Delinquent obligations are not addressed in the approved manner.
- Incomplete counseling or disclosures: Required counseling has not occurred or household and spouse information is inaccurate.
- Later default: Taxes, insurance or repairs are neglected, or the home stops being the principal residence.
If a lender declines the application, request the specific reason and ask whether correcting title, paying down debt, adding cash for a payoff or choosing another property would change the analysis. A counselor can help compare that answer with alternatives.
What should you confirm before signing?
Have the counselor or lender answer these questions in writing:
- Which borrowers are eligible on the proposed closing date?
- What is the property’s appraised value and approved category?
- Exactly which mortgage, lien and closing obligations will be paid from proceeds?
- What taxes, insurance, repairs or set-asides remain my responsibility?
- What events make the loan due and payable?
- What protections, if any, apply to a non-borrowing spouse?
- What happens if I move temporarily, permanently or into long-term care?
- Which fees and interest terms apply, and how can the balance change over time?
The safest decision is the one you can explain in terms of both immediate cash and the long-term effect on the home, spouse and estate. Eligibility is only the first screen; affordability of the continuing obligations and understanding the repayment conditions are equally important.
Frequently Asked Questions
Is there a maximum age for a HECM borrower?
No. HUD’s HECM handbook sets a minimum age of 62 at closing and states that there is no maximum borrower age. A lender still has to approve the property and the borrower’s ability to meet ongoing obligations.
Can federal debt keep me from getting a reverse mortgage?
Federal debt delinquency must be addressed during the HECM financial review. Depending on the circumstances, the debt may be paid from loan proceeds, so delinquency is not automatically the same as a permanent denial.
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Can both spouses live in the home if only one is 62?
The younger spouse may be treated as a non-borrowing spouse rather than a borrower. Continued occupancy after the borrowing spouse dies or becomes ineligible depends on meeting the applicable HUD and loan conditions, so disclose the marriage before applying.
Does an HECM for Purchase let me buy any type of property?
No. The purchased home must qualify under HECM property rules, become the borrower’s principal residence and satisfy appraisal, title, insurance and condition requirements. The lender also verifies the funds and obligations required at closing.
