Reverse Mortgage Eligibility Requirements

There are eligibility requirements you need to meet in order to qualify for the reverse mortgage by the Federal Housing Administration (FHA).

Home equity is determined by the Federal Housing Administration by calculating the current interest rate, variable or fixed rate, youngest homeowner’s age, FHA lending limits and value of the home when appraised. Reverse mortgage is not affected by factors such as bankruptcy that has already been discharged, the homeowner’s health or their income or credit.

A variety of properties can be eligible for a reverse mortgage, such as single family homes, two to four unit houses, manufactured homes constructed after 1976 and HUD-approved condominiums. However, it must be noted that these properties must meet FHA requirements.


  • Reverse mortgage loans are accessible to all citizens of the United States, as well as those with Permanent Resident status aged 62 or older.
  • Your home must remain your primary residence, or you must make it the primary residence within 60 days.
  • There should be a sufficient amount of equity built up in your home.
  • The home must be up to the Federal Housing Administration’s (FHA) minimum property standards. It is possible to use your reverse mortgage loan to pay for required maintenance, in some instances.
  • You are required to meet with a Home Equity Conversion Mortgage (HECM) counselor. He or she will sit with you to review reverse mortgage alternatives and explain what financial impact it will have on you as the borrower, among others.
  • You will be required to maintain homeowner’s insurance, as well as property taxes. As long as you do this, you can take advantage of not making monthly payments until the loan reaches maturity.
  • Borrowers must not have a history of late payments or defaulted on any federal debt.

Additional Information

Below is information commonly sought after by those who are interested in obtaining a reverse mortgage.

  • It is possible for people who have existing mortgage to qualify for home reverse mortgages. They only have to ensure there is enough equity in order to qualify.
  • The FHA reverse mortgage enables borrowers to purchase a residence using the money from a reverse mortgage, as long as they are able to give a downpayment on the new home. This is made possible by the program which was created to assist qualified homeowners to purchase a home that will meet their needs without amassing new mortgage payments.
  • Up to three homeowners are allowed by the FHA to be on the loan. All of the homeowners listed on the loan must be at least 62 years old. No less than one of the homeowners must occupy the home as his or her primary residence. It is possible to remove or add a homeowner to the title, regardless of their relationship to each other.

It is one thing to qualify for a reverse mortgage and another to matter altogether to decide if the benefits of obtaining one will outweigh the drawbacks. You must discuss this with your financial planner at length as this decision is not one that you should make lightly.