Eligibility · 5 min read

Am I Eligible? Age, Equity, and the Rules

Eligibility comes down to three things: your age, your home, and your equity. Here's exactly what the rules require for a federally-insured HECM reverse mortgage.

The three core requirements

To qualify for a Home Equity Conversion Mortgage (HECM) — the most common federally-insured reverse mortgage — you need to meet three basics:

1. Age 62 or older

Every borrower listed on the title must be at least 62. If a spouse is younger, they can remain on the title, but special rules apply to protect them.

2. Your primary residence

The home must be where you live most of the year. Reverse mortgages don't cover vacation homes, investment properties, or second homes.

Eligible property types include single-family homes, 2–4 unit properties (if you live in one unit), FHA-approved condos, and manufactured homes that meet FHA standards.

3. Sufficient equity

There's no single fixed number. Any existing mortgage must be paid off with the reverse mortgage proceeds or other funds, so you need enough equity for that. The more equity you have, the more you can generally access.

The financial assessment

Lenders will review your income, credit history, and monthly obligations to confirm you can keep up with property taxes, insurance, and maintenance. This protects you — and the program.

Mandatory counseling

Before you get a HECM, you must complete an independent counseling session with a HUD-approved agency. Agencies may charge a reasonable fee, but they cannot charge you if you can't afford it. This ensures you fully understand the loan, your alternatives, and your responsibilities. There's no selling during counseling — it's purely educational.

What could disqualify you

Being behind on federal debts (including back taxes or student loans)
A recent bankruptcy that hasn't been discharged
Delinquent property taxes or insurance on the home

Many of these are fixable. A licensed advisor can help you understand where you stand.