Requirements

Do You Qualify for a Reverse Mortgage?
HECM Eligibility Requirements Explained

HECM eligibility is more straightforward than most people expect. The requirements exist to make sure this product is appropriate for your situation and that you'll be able to stay in your home comfortably. Let's walk through each one.

Age requirement

At least one borrower must be 62 years of age or older at closing. If you're married and both spouses are on the title, both can be borrowers if both are 62+. If one spouse is younger, they can still be protected as a "non-borrowing spouse" — but the loan amount will be calculated based on the age of the younger borrower.

The older you are, the more equity you can access. This is because the loan has fewer years to accrue interest before it's repaid.

Property requirements

The home must be your primary residence — where you live most of the year. Eligible property types include:

Single-family homes

2-4 unit properties (if you live in one unit)

FHA-approved condominiums

Manufactured homes (post-June 1976, on permanent foundation)

The home must also meet FHA minimum property standards, which an appraiser will verify. Vacation homes, investment properties, and second homes are not eligible.

Equity requirement

You need significant equity in your home — generally 50% or more, though the exact threshold depends on your age, interest rates, and the home's value. If you have an existing mortgage, the HECM will pay it off first. The remaining equity is what becomes available to you.

The maximum HECM lending limit for 2026 is $1,249,125. If your home is worth more than this, the calculation is based on this cap. For higher-value homes, proprietary (non-FHA) reverse mortgages may be an option.

Financial assessment

This is not a traditional credit check with a hard score cutoff. The lender reviews your willingness and ability to meet your ongoing obligations — specifically property taxes, homeowner's insurance, and HOA dues (if applicable). They'll look at your credit history, income, and expenses.

If the assessment identifies potential concerns, you won't necessarily be denied. Instead, the lender may require a Life Expectancy Set-Aside (LESA) — a portion of your loan proceeds reserved to automatically pay your taxes and insurance.

Past financial difficulties, including bankruptcy or foreclosure, don't automatically disqualify you — especially if there were extenuating circumstances like a medical event.

HUD-approved counseling

Before you can apply for a HECM, you must complete a counseling session with a HUD-approved counselor. This is a federal requirement — and it's one of the strongest consumer protections in any financial product.

The counselor is independent — they don't work for any lender and have no financial interest in whether you proceed. They'll explain how the loan works, what it costs, what your obligations are, and what alternatives might be available to you.

The session typically takes about an hour, can usually be done by phone, and costs a small fee (often $125 or less, sometimes waived). I'll provide you with a list of approved counselors in your area.

Quick eligibility self-check

If you can check all of these, there's a strong chance you qualify:

I'm 62 or older (or my spouse is)

I own my home

It's my primary residence

I have significant equity (50%+)

I can pay property taxes and insurance

I'm willing to attend a counseling session

This is a general guide — not a formal determination. Talk to me for a definitive answer.

Frequently Asked Questions

My spouse is under 62 — can we still get a HECM?

Yes, but with some nuances. Only the spouse who is 62 or older can be listed as a borrower, which affects the loan amount (it's based on the younger spouse's age for the borrower). However, a non-borrowing spouse has protections — they can remain in the home after the borrowing spouse passes away, as long as certain conditions are met. This is an important topic we should discuss in detail.

What if I have an existing mortgage?

That's perfectly fine. Your HECM proceeds will first pay off the existing mortgage balance. Whatever remains is yours to use however you choose. In fact, eliminating a monthly mortgage payment is one of the most common reasons people get a HECM.

What counts as 'significant equity'?

While there's no hard-and-fast rule, most borrowers need roughly 50% equity or more. The exact amount you can borrow depends on your age (older borrowers can access more), your home's appraised value, and current interest rates. The FHA also sets a maximum claim amount (lending limit) which is currently $1,249,125 for 2026.

What if my property taxes are behind?

Delinquent property taxes must be resolved before closing, but this doesn't necessarily disqualify you. In some cases, HECM proceeds can be used to pay off the back taxes at closing. We can discuss your specific situation.

What's the financial assessment looking for?

The lender reviews your credit history, income sources, and expenses to determine that you can meet your ongoing obligations — property taxes, insurance, and maintenance. It's not a traditional credit score cutoff. Past financial difficulties don't automatically disqualify you, especially if there are extenuating circumstances.