HECM Reverse Mortgage Requirements
| Requirement | Detail |
|---|---|
| Minimum age | 62 years old (all borrowers on title) |
| Property type | Primary residence only (not rental or vacation property) |
| Eligible property types | Single-family home; 2–4 unit (owner-occupied); HUD-approved condo; manufactured home (post-1976, permanent foundation) |
| Equity required | No minimum, but ideally 50%+ equity; existing mortgage often paid from proceeds |
| HUD counseling | Required before application — must complete with HUD-approved counselor |
| Financial assessment | Must demonstrate ability to pay property taxes, insurance, and maintenance |
| Property condition | Must meet FHA minimum property standards |
| Credit history | No minimum score, but outstanding federal debt (tax liens) must be resolved |
| HECM lending limit 2026 | $1,149,825 maximum home value for calculation |
Since 2015, lenders are required to conduct a financial assessment of all reverse mortgage applicants. This evaluates your income, assets, credit history, and payment history for property charges. If the assessment shows you may not be able to maintain ongoing property costs (taxes, insurance), the lender may require a Life Expectancy Set-Aside (LESA) — funds reserved from loan proceeds to pay future property charges.
Every HECM applicant must complete a session with a HUD-approved reverse mortgage counselor before applying. Cost: $125–$200 (may be waived for low-income applicants). Session covers loan mechanics, costs, alternatives, and your rights. You'll receive a certificate valid for 180 days. This counseling is required — not optional — and is independent of the lender.
Frequently Asked Questions
Yes — but your existing mortgage must be paid off at or before closing. If your existing mortgage balance is less than the reverse mortgage proceeds you qualify for, you can use reverse mortgage funds to pay it off at closing. If the existing mortgage is too large relative to your equity, you may not qualify or may need to bring cash to close.
A non-borrowing spouse under 62 can be on the property title but cannot be a borrower. If the borrowing spouse passes away or moves to care permanently, the younger spouse can remain in the home (as a Qualifying Non-Borrowing Spouse) without the loan becoming due — provided they meet certain conditions including having been married to the borrower at loan closing and continuing to pay property charges.