Reverse Mortgage Calculator
This reverse mortgage calculator has two parts. In Step 1, basic information like property value will be used to evaluate whether or not you are eligible for a reverse mortgage. In Step 2, you can enter additional property information to determine how much you may be eligible for.
Reverse Mortgage Eligibility Requirements
To qualify for a reverse mortgage, you must meet several key criteria. These requirements are designed to ensure borrowers can responsibly access their home equity while maintaining long-term financial stability.
Basic Eligibility Criteria
- The youngest borrower on title must be 62 years of age or older
- Must have sufficient equity in the home
- Must meet financial eligibility standards established by HUD
How Equity Is Calculated
The amount of equity required is determined through an FHA formula that considers:
- Current interest rates
- Whether the loan is fixed or variable
- Age of the youngest homeowner
- FHA lending limits
- Appraised value of the home
Note: You may be required to set aside a portion of your loan proceeds to cover future property taxes and homeowners insurance.
Use the Reverse Mortgage Calculator to estimate your loan amount and determine if you have enough equity to qualify.
Frequently Asked Questions
Q: Can someone under 62 qualify if they’re permanently disabled?
A: No. FHA guidelines use age as a strict eligibility factor. Disability or Social Security status does not affect qualification.
Q: Can I qualify if I still have a mortgage?
A: Yes—if you have enough equity. Many borrowers use reverse mortgage proceeds to pay off their existing mortgage, eliminating monthly payments.¹
Q: Do all homeowners age 62+ qualify automatically?
A: Not necessarily. You must have adequate home equity, live in an eligible property type, and meet HUD’s financial criteria.
Q: What if I don’t have enough equity to qualify?
A: This is called a shortfall—when the reverse mortgage proceeds aren’t enough to pay off your current mortgage. In some cases, homeowners may choose to pay down the difference to qualify. However, many are unable to cover the shortfall and may not be eligible.
¹ Borrowers must live in the home as their primary residence, continue paying property taxes and insurance, and maintain the home according to FHA guidelines. Failure to meet these obligations may result in loan default and foreclosure.