Eligibility Requirements

In general, to be eligible for a reverse mortgage the youngest homeowner must be 62 years old or older and have sufficient home equity.

Determining whether or not there is sufficient equity in the home is an FHA calculation that takes into account:

You can use the online reverse mortgage calculator to find out if you have sufficient equity and what the loan principal limit would be.

Things that generally do not affect eligibility for a reverse mortgage:

Frequently asked questions:

If a homeowner is not 62 but they are permanently disabled, can they qualify?: No. The FHA use age as a criteria to determine reverse mortgage eligibility and makes no exceptions for disability or Social Security status.
Can someone qualify if they have a mortgage?: Yes. Where there is sufficient equity a majority of people who take out a reverse mortgage use it to pay off their existing mortgage so they can stop making monthly mortgage payments.
Do all 62-year olds who own their home qualify?: No. Some homeowners who want to get a reverse mortgage are not eligible because they don’t have enough equity built up in their home.
The younger the homeowner is, the more equity they need to have to qualify. Also, some types of homes are not eligible.
What happens if there isn’t enough home equity to qualify?: This is called a “shortfall.” This means that the reverse mortgage would not provide enough money to pay off the existing mortgage on the home — it is coming up
“short.” In this situation, some homeowners may choose to make up the difference by paying down the balance on their mortgage by the amount of the shortfall
so that they can qualify for the reverse mortgage. However, most people who want a reverse mortgage and have a shortfall don’t have enough money to do this.