7 Most Important Reverse Mortgage Eligibility Requirements

Is a reverse mortgage right for you? Before tapping into your home equity, it’s important to understand the qualifications. While the FHA provides general guidelines for HECM loans, private lenders and state laws can make the process more complex.

Whether you’re 62 and planning ahead or exploring private options, this guide unpacks the most crucial requirements—from age to financial reserves—so you can navigate your next steps with ease.

Table of Contents

1. Reverse mortgage requirements
   1. 1. At least 62 years of age (55 for some products)
   2. 2. At least 50% equity
   3. 3. Home is your primary residence
   4. 4. No delinquent federal debt
   5. 5. Minimum credit score (might be required for certain private lenders)
   6. 6. Enroll in HUD-approved counseling
   7. 7. Sufficient financial reserves

Reverse mortgage requirements

There are three types of reverse mortgages, but requirements for the different types of reverse mortgages are similar. The main exception is that some lenders may have unique requirements for private reverse mortgages.

Criterion	Typical requirement
1. Age	62 to qualify for HECM (varies for private reverse mortgages)
2. Equity	At least 50% equity in your home
3. Residence type	Primary
4. Debt	No delinquent federal debt
5. Minimum credit score	None for HECM (can vary for private reverse mortgages)
6. Counseling	Necessary for HECM (varies for private reverse mortgages)
7. Financial reserves	Must continue paying ongoing homeownership expenses, such as property taxes and home insurance

In my experience, a reverse mortgage is a last resort for somebody who desires to remain in their home for life and whose income and assets are not sufficient for the remainder of their life; the option to leave the home as a legacy may not be an option anymore if it was in the original estate plan—and that is okay! Taking care of yourself is the priority.

1. At least 62 years of age (55 for some products)

You must be at least 62 years old to qualify for a HECM. However, some lenders will allow applicants as young as 55 to qualify for a private reverse mortgage. In addition, some states, including New York, require private reverse mortgage borrowers to be at least 60.

• Private lender Mutual of Omaha requires borrowers to be 62 years of age to quality for its reverse mortgage products.
• Longbridge Financial, Finance of America, and Fairway Independent Mortgage Company offer reverse mortgage products for borrowers ages 55 or older.

2. At least 50% equity

In general, you need at least 50% equity in your home to qualify for a HECM or reverse mortgage. For example, if your home’s current appraised value is $500,000, your mortgage must be $250,000 or lower.

Our highest-rated reverse mortgage lenders all require 50% equity.

3. Home is your primary residence

You must occupy the home you’re taking out a reverse mortgage on for most of the calendar year.

Mutual of Omaha reverse mortgages are available for principal residences under four units.

4. No delinquent federal debt

To qualify for a HECM, you must not have any delinquent federal debt, such as a federal student loan or tax bill. However, you could use the money from a HECM to pay off any overdue federal debts.

5. Minimum credit score (might be required for certain private lenders)

HUD doesn’t specify a minimum credit score requirement to qualify for a HECM. However, when you apply for the program, a lender reviews your credit history. Lenders that offer private reverse mortgages might have unique credit score requirements.

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Tip

Mutual of Omaha and our other best reverse mortgage providers don’t have a minimum required credit score.

6. Enroll in HUD-approved counseling

When you apply for a HECM, you must participate in a HUD-approved counseling course.

Whether you need to complete a counseling course for a private reverse mortgage depends on where you live. For example, New York requires residents to attend in-person counseling unless they have a written waiver.

7. Sufficient financial reserves

Whether you take out a private reverse mortgage or HECM, you must have enough money to continue paying ongoing housing-related costs such as property taxes and home insurance.

We checked with Mutual of Omaha, Longbridge Financial, Finance of America, and Fairway Independent Mortgage Company, but none of these providers disclose a specific required amount of financial reserves.

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Ready to take the next step with a reverse mortgage? Choosing the right lender is critical to ensuring a smooth process and favorable terms. We’ve evaluated top-rated reverse mortgage lenders to help you get started with confidence.

Here’s a quick look: