Reverse Mortgage Eligibility Rules

To qualify for a reverse mortgage, the youngest homeowner must be at least 62 years old and have enough home equity.

Eligibility assessments use an FHA calculation that considers:

• Age of the homeowner
• Property’s value
• Balance on existing mortgages
• Expected interest rate
• Principal lending limit

Factors that do not affect reverse mortgage eligibility

• Bankruptcy
• Health of the homeowners

Reverse mortgage rules frequently asked questions:

• If someone is under 62 but they are on permanent disability, do they qualify?
  • No. The minimum age is 62 and there are no exceptions for disability or Social Security status.
• Can someone that has a mortgage still get a reverse mortgage?
  • Yes. Many people who get a reverse mortgage use it to pay off their current mortgage and stop making mortgage payments.
• Does every homeowner over age 62 qualify?
  • No. Many people who want a reverse mortgage do not have enough equity in their home to qualify.
• What if there is too little home equity to qualify?
  • A “shortfall” means that the reverse mortgage would not generate enough proceeds to cover the existing mortgages on the home. In this situation, the homeowner can not
    get a reverse mortgage until the balance of their existing mortgage is lowered. If they have money available, they can “pay down” their mortgage balance to qualify for the reverse mortgage.

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