Eligibility

Reverse Mortgage Eligibility:
Requirements & How to Qualify

To qualify for a HECM reverse mortgage, you must be 62+ years old, own your home with significant equity (typically 50%+), and live in the home as your primary residence. You must also complete HUD-approved counseling and pass a financial assessment. Dream Financial Management since 1994.

HECM Reverse Mortgage Requirements

Age: 62+ (Both Borrowers)

All borrowers must be at least 62 years old. Non-borrowing spouses under 62 require special planning — they may not be protected if the borrowing spouse dies first.

Home Equity: ~50%+ Required

The older you are and the more equity you have, the more you can borrow. At 62 with 50% equity, you can access roughly 30-40% of home value. At 82, this increases to 50-60%+.

Primary Residence

The home must be your primary residence. Eligible properties: single-family homes, 2-4 unit properties (one unit owner-occupied), FHA-approved condos, and manufactured homes meeting FHA standards.

HUD Counseling (Mandatory)

You must complete a session with a HUD-approved housing counselor before applying. This ensures you understand the loan terms, costs, and alternatives. Certificate required for application.

Financial Assessment

Lenders evaluate your income, assets, and credit history to ensure you can pay property taxes, homeowners insurance, and maintenance costs going forward. Failure to pay these can trigger foreclosure.

No Delinquent Federal Debt

You cannot have delinquent federal debt (IRS, student loans, etc.). These must be resolved or included in a payment plan before HECM approval.

Check Your Reverse Mortgage Eligibility

Dream Financial Management evaluates your age, home equity, and financial situation to determine if a reverse mortgage is right for you. Since 1994.

Check Eligibility — Free