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Reverse Mortgage Eligibility Criteria

A reverse mortgage is a type of loan available to homeowners aged 62 or older, which allows them to borrow money using the equity in their home as collateral. This unique financial product can provide a steady stream of income for seniors who may be struggling with living expenses, and it does not require monthly payments.

Qualifying for a Reverse Mortgage​

To qualify for a reverse mortgage, borrowers must meet certain criteria set forth by the U.S. Department of Housing and Urban Development (HUD), which oversees the program. Here are some key factors to consider:

  • Age: Borrowers must be at least 62 years old to qualify for a reverse mortgage.
  • Ownership: The borrower must own their home outright or have a low balance on their existing mortgage.
  • Occupancy: The borrower must occupy the property as their primary residence. This means that they cannot rent out the home or use it as an investment property.
  • Creditworthiness: While credit score is not a major factor in reverse mortgage qualification, borrowers must have good credit to qualify for other loan products, such as a line of credit or a lump sum payment.
  • Income: Borrowers do not need to demonstrate income to qualify for a reverse mortgage, but they must still pay property taxes and insurance on the home.
  • Property Value: The value of the property is taken into consideration when determining how much money can be borrowed.