The basic requirements: age, home equity, and occupancy

To get a reverse mortgage, you must be at least 62 years old, own your home outright or have a small mortgage balance you can pay off with the loan proceeds, and live in the home as your primary residence. That is the starting point. Everything else flows from those three facts.

The age requirement is federal and does not change. Home equity is what matters most to lenders—they want to know how much of your home you own free and clear. If you still owe money on a traditional mortgage, the reverse mortgage lender will require you to use part of your loan to pay that off first. You cannot have a reverse mortgage and a regular mortgage on the same property at the same time.

Primary residence means you must live there most of the year. You can own a second home or a vacation property, but the reverse mortgage only works on the house where you spend the majority of your time. If you move into assisted living or a nursing home for more than 12 months, most reverse mortgage programs will require you to repay the loan.

Key Takeaways

  • You must be 62 or older, own your home or nearly own it, and live in it as your main residence to be considered for a reverse mortgage.
  • Lenders will order an appraisal to determine your home's current value, which directly affects how much money you can borrow.
  • You will need to show proof of income, assets, and credit history so the lender can assess whether you can pay property taxes, insurance, and maintenance costs.
  • A counseling session with a HUD-approved counselor is required by federal law before you can close a reverse mortgage loan.
  • If you cannot meet the income and credit requirements, some lenders offer programs with higher costs or require a set-aside account funded from your loan proceeds.

How lenders assess your home's value and your equity

The lender will order a professional appraisal of your home. This appraisal determines the maximum amount you can borrow. The older you are and the more equity you have, the larger the loan amount available to you. A 75-year-old with a $400,000 home will receive a larger loan than a 62-year-old with the same home.

If you still owe money on a mortgage, the lender calculates your usable equity by subtracting what you owe from the appraised value. If your home is worth $300,000 and you owe $80,000, your equity is $220,000. The lender will use part of your reverse mortgage to pay off that $80,000 first, then the remaining loan amount becomes available to you as cash, a line of credit, or monthly payments.

Property condition matters too. The lender's appraiser will note significant damage or deferred maintenance. You do not have to make repairs to get the loan, but the appraisal value will reflect the home's current condition. A home needing a new roof or foundation work will appraise lower than an identical home in good repair.

Income and credit: what lenders actually verify

Most reverse mortgage lenders will ask for recent tax returns, bank statements, and a credit report. They are checking whether you have the income and resources to keep paying property taxes, homeowners insurance, and maintenance costs. Unlike a traditional mortgage, a reverse mortgage does not require a monthly payment to the lender, but you remain responsible for these other costs.

Credit score requirements vary by lender. Some will work with scores in the 600 range; others want 680 or higher. A low score or recent late payments do not automatically disqualify you, but they may result in a higher interest rate or require you to set aside money from your loan proceeds to cover future property taxes and insurance.

Income does not have to be high, but it has to exist and be documented. Social Security counts. Pensions count. Rental income counts. The lender wants to see that you have a reliable way to cover the costs of owning the home. If your income is very low and you have little in savings, the lender may require a set-aside account—money taken from your loan proceeds and held in reserve to pay taxes and insurance for several years into the future.

The mandatory counseling session and what it covers

Federal law requires that you meet with a counselor approved by the Department of Housing and Urban Development (HUD) before you can close a reverse mortgage. This is not optional, and it is not a sales pitch. The counselor works independently of the lender and is there to make sure you understand what you are signing.

The counselor will review the loan terms, explain how the interest accrues, discuss what happens if you move or pass away, and talk through alternatives you might not have considered. They will ask about your financial situation, your plans for the money, and whether a reverse mortgage actually makes sense for your circumstances. This session typically takes 60 to 90 minutes and may be done in person or by phone.

After the session, the counselor issues a certificate of completion. You cannot close the loan without it. The lender cannot pressure you to attend a specific counselor or rush through the process. You can find HUD-approved counselors through the HUD website or by calling 1-800-569-4287.

Citizenship, residency, and property type requirements

You must be a U.S. citizen or a permanent resident (green card holder). Non-citizens cannot get a reverse mortgage, even if they own the home outright.

The property itself must be a single-family home, a two-to-four unit property where you occupy one unit, a condo in an FHA-approved condo project, or a manufactured home that meets specific standards. You cannot get a reverse mortgage on a mobile home, a cooperative apartment, or a property in a homeowners association that does not meet FHA requirements. If you live in a condo, the lender will verify that the condo project is on the FHA-approved list.

The home must be your primary residence. You cannot reverse-mortgage a rental property, a vacation home, or an investment property, even if you own it free and clear.

What happens if you do not meet the standard requirements

If your credit is poor or your income is very low, you have options beyond walking away. Some lenders offer non-QM (non-may have access to mortgage) reverse mortgages, which have fewer income and credit requirements but typically charge higher interest rates and fees. These loans are less common and come from a smaller pool of lenders, so you will need to shop carefully.

Another path is the set-aside account. If you do not meet income requirements but have enough equity in your home, the lender can set aside a portion of your loan proceeds—often enough to cover property taxes and insurance for 5 to 10 years. This reduces the cash available to you when ready, but it removes the lender's concern about whether you can afford to keep the home.

If you have a spouse who is under 62, you can still get a reverse mortgage, but the loan will be structured differently. The younger spouse will not be on the loan, which means they will not have the same protections if you pass away. This is a significant decision and worth discussing with the HUD counselor and a lawyer.

Frequently Asked Questions

Can I get a reverse mortgage if I still owe money on my regular mortgage?

Yes. The reverse mortgage lender will require you to use part of the loan to pay off the existing mortgage first. After that balance is cleared, the remaining loan amount is yours to use. You cannot have both loans active at the same time.

What if my spouse is younger than 62?

You can still get a reverse mortgage, but your spouse will not be a borrower on the loan. If you pass away, your spouse will have limited options and may be required to repay the loan or sell the home. Speak with a lawyer and a HUD counselor about whether this arrangement protects your spouse adequately.

Does a reverse mortgage affect my Social Security or Medicare?

A reverse mortgage itself does not affect Social Security. It may affect Medicaid or SSI (Supplemental Security Income) if you receive those benefits, because the money you receive counts as income or assets. Check with your local Medicaid office or SSI representative before taking out a reverse mortgage if you rely on means-tested benefits.

What if I have had bankruptcy or foreclosure in the past?

Bankruptcy or foreclosure does not automatically disqualify you, but it will be on your credit report and the lender will ask about it. The older the event, the less weight it carries. A foreclosure from 15 years ago is treated differently than one from 2 years ago. Be honest with the lender and the counselor about what happened.

Can I get a reverse mortgage on a condo or manufactured home?

Condos are possible if the project is on the FHA-approved list. Manufactured homes can may have access to if they meet specific standards (built after 1976, on a permanent foundation, and in an approved community). Ask the lender to verify your property type before you spend time and money on an appraisal.