Who Qualifies for a Reverse Mortgage: Age, Equity, and Home Rules

To qualify for a reverse mortgage, you generally need to be at least 62 years old, live in the home as your primary residence, own it outright or have a low enough mortgage balance to pay it off at closing, and satisfy a lender’s financial assessment showing you can keep up with property taxes, insurance, and maintenance. The most common reverse mortgage is the federally insured Home Equity Conversion Mortgage (HECM), and its rules are set by HUD and the FHA. For 2026, the maximum home value that can factor into a HECM calculation is $1,249,125.¹

The Age Rule

Federal law requires the borrower to be at least 62 years old.² The regulation confirming the age threshold for HECM borrowers sits at 24 CFR 206.33.³ There is no upper age limit.

If you apply with a co-borrower, only one of you needs to be 62, but the age of the younger borrower affects how much you can access. The younger the youngest borrower, the lower the available loan proceeds. At age 62 with a 5% rate, the available portion may be roughly 41% of the home’s value; an 82-year-old at the same rate could access closer to 56%.⁴

The Home Has to Be Your Primary Residence

The property securing the loan must be your principal residence at closing.⁵ Federal rules define that as the dwelling where you maintain your permanent home and typically spend most of the calendar year, and you can only have one principal residence at a time.⁶ Vacation homes, rental properties, and investment properties do not qualify.

You also have to keep living there. If you move out, the loan becomes due and payable. A temporary stay in a healthcare facility is allowed, but if you’re away for more than 12 consecutive months and no other borrower lives in the home, the lender can call the loan due.⁶ Proof of residency usually comes down to showing you receive mail and keep legal records at the address.

Equity and Your Current Mortgage

You must either own your home outright or have a mortgage balance small enough that the reverse mortgage proceeds can pay it off at closing.⁷ Whatever you owe on your existing loan is paid off first, and only the remaining funds are available to you. The HECM then holds the first lien on the property.

How much you can borrow depends on three variables:

The age of the youngest borrower (or eligible non-borrowing spouse)
The current interest rate
The lesser of your home’s appraised value or the $1,249,125 HECM lending limit for 2026

The $1,249,125 cap applies nationwide, regardless of local housing costs, for case numbers assigned between January 1 and December 31, 2026.¹ If your home appraises above that figure, the excess value doesn’t add to your available proceeds. Older borrowers and lower interest rates generally produce higher loan amounts.⁴

Which Homes Qualify

Not every property is eligible. The home has to fall into one of these categories and meet HUD safety and structural standards:

Single-family homes, the most common eligible property.
Two-to-four-unit dwellings, where you occupy one unit as your primary residence.
FHA-approved condominiums. The entire condominium project must have FHA approval, which involves a review of the HOA’s finances and the share of owner-occupied units. If the complex isn’t approved, the lender may pursue a single-unit approval for your transaction.⁸
Manufactured homes built after June 15, 1976, sitting on a permanent foundation that meets FHA standards, classified and taxed as real estate, and on land you own.⁹

Homes That Don’t Qualify

Cooperative housing units (co-ops) are ineligible, because a co-op owner holds shares in a corporation rather than a deed to the property. Condominiums without FHA approval, boarding houses, bed-and-breakfast establishments, and manufactured homes built before June 15, 1976, are also excluded. Whatever the property type, it has to be freely marketable, meaning it can be sold without unusual restrictions on conveyance.⁹

The Financial Assessment

There is no minimum credit score or income level for a HECM, but the lender still runs a financial assessment to gauge whether you can carry the ongoing costs of homeownership. The review looks at credit history, monthly cash flow, and residual income after housing and other debts.¹⁰

The credit side focuses on delinquent federal debts, unpaid liens against the property, and a pattern of late payments on credit accounts or prior mortgages.¹¹ If the review raises concerns about your ability or willingness to pay property charges, the lender must carve out a Life Expectancy Set-Aside (LESA) from your loan proceeds to cover future taxes and insurance on your behalf.¹² A mandatory LESA reduces the cash you can access, but it protects you from defaulting on the loan.

Required HUD Counseling

Before the lender can process your application, you must complete a counseling session with a HUD-approved agency. The borrower, any non-borrowing spouse, and any non-borrowing owner on the title must all take part.¹³ The counselor walks through the financial implications, discusses alternatives, and lays out your obligations, including the requirement to keep paying property taxes and insurance.

You’ll receive a certificate to submit with your application. Sessions typically cost between $125 and $200, though some agencies allow the fee to be paid at closing. The lender must provide a list of HUD-approved counselors at first contact, and you can choose any approved agency.¹³

If Your Spouse Is Younger Than 62

A spouse under 62 cannot be listed as a borrower on the HECM, but they may still be protected. Federal rules let a non-borrowing spouse qualify for a “Deferral Period” that allows them to stay in the home after the borrowing spouse dies, if certain conditions are met at closing.¹⁴

To be an Eligible Non-Borrowing Spouse, the person must:

Be married to the borrower at closing and remain married for the borrower’s lifetime
Be disclosed to the lender at origination and named in the loan documents
Live in the home as a principal residence both before and after the borrower’s death
Continue meeting all loan obligations, including paying property taxes, insurance, and keeping the home in good repair

A spouse who doesn’t meet these requirements at closing cannot later become eligible. During the Deferral Period, the surviving spouse can remain in the home but cannot draw additional funds from the reverse mortgage.¹⁴

Putting the Requirements Together

If you’re 62 or older, live in an eligible primary residence, hold enough equity to clear any existing mortgage at closing, and can show a lender you’ll keep up with taxes, insurance, and upkeep, you meet the core qualifications. From there, the size of the loan comes down to your age, the current interest rate, and the lesser of your home’s appraised value or the 2026 limit of $1,249,125. A counseling certificate from a HUD-approved agency is the last piece before the lender can move your application forward.

1
U.S. Department of Housing and Urban Development. HUD Federal Housing Administration Announces 2026 Loan Limits
2
Office of the Law Revision Counsel. 12 USC 1715z-20 Insurance of Home Equity Conversion Mortgages
3
eCFR. 24 CFR 206.33 – Age of Borrower
4
U.S. Department of Housing and Urban Development. HUD FHA Reverse Mortgage for Seniors (HECM)
5
eCFR. 24 CFR 206.39 – Principal Residence
6
eCFR. 24 CFR 206.3 – Definitions
7
Consumer Financial Protection Bureau. Can Anyone Take Out a Reverse Mortgage Loan
8
U.S. Department of Housing and Urban Development. Condominium Project Approval and Processing Guide
9
eCFR. 24 CFR 206.45 – Eligible Properties
10
eCFR. 24 CFR Part 206 – Home Equity Conversion Mortgage Insurance – Section 206.37
11
U.S. Department of Housing and Urban Development. HECM Financial Assessment and Property Charge Guide
12
eCFR. 24 CFR Part 206 – Home Equity Conversion Mortgage Insurance – Section 206.205
13
eCFR. 24 CFR 206.41 – Counseling
14
eCFR. 24 CFR 206.55 – Deferral of Due and Payable Status for Eligible Non-Borrowing Spouse