Reverse Mortgage Requirements

Senior homeowners often hold a large sum of their net worth within the value of their homes. Unfortunately, most of them still bear the hardships of life without knowing that they can actually take a reverse mortgage to help ease their financial burdens. A reverse mortgage allows senior homeowners to convert their home equity into cash. In turn, this enables them to settle their monthly bills with peace of mind.

Below are some of the requirements, as well as some of the qualifications for a reverse mortgage.

Reverse mortgage requirements for the borrower:

At least one of the borrowers on title must be at least 62 years of age or older: Since this type of loan was created for senior homeowners you must be 62 years or older to qualify. Most senior homeowners tend to retire with a lot of debt on their shoulders. This loan can be used to help pay off any remaining mortgages. They must own the property and have equity available in the home.

  • The senior homeowner must own the property. The name of the borrower must be on the title of the home. The Reverse Mortgage proceeds must be used to satisfy any outstanding liens or mortgages.
  • The home must be the senior homeowners primary residence: The Home Equity Conversion Mortgage (HECM), only allows homeowners to use their primary residence.. In accordance with this requirement, they must also periodically confirm their residency in that home. They do this by appending their signatures on an occupancy certificate issued by the lender.

Home requirements:

  • The home should be a single family home or have up to 4 units with one unit occupied by you. Most homes that qualify for the HECM loan are single homes, occupied by one family. However if the property is a multiple family home with up to 4 units, the borrower can qualify if he/she lives in one of the units.
  • The home must conform to the requirements of the Federal Housing Administration (FHA): The home can be manufactured, but the borrower can only qualify for a reverse mortgage if the structure meets the FHA set standards, including the flood requirements.
  • If the home is a HUD approved condominium project: Senior citizens who own condos that meet FHA property guidelines can qualify for a reverse mortgage. The home will be appraised by a certified appraiser to confirm if it is eligible.

Financial requirements:

  • The borrower should not be delinquent on any federal debts
  • Those who owe the federal government anything cannot take a reverse mortgage without first settling them.
  • The borrow should still be able to pay for his or her taxes, insurance, as well as homeowners association fees.


Knowledge is power, and possessing accurate information about reverse mortgages aids in making an educated financial decision. The requirements for a reverse mortgage can seem stringent; however, a licensed professional can give more clarity. Senior home owners should take advantage of this loan to achieve a higher quality of life. Understanding all the reverse mortgage requirements that apply to the borrower and prospective property, is a crucial step toward obtaining this type of loan.


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