Do I Qualify For A Reverse Mortgage?
The lender is required by The Federal Housing Administration to complete a financial assessment on each borrower to determine the homeowner’s willingness and capability to remain current on their obligations and ensure they qualify. Our professionals will review your credit history, analyze your income and compare it to your expenses to determine your eligibility.
You are required to pay your real estate taxes, homeowner’s insurance and HOA fees (if applicable), as well as continue to make home repairs as needed.
The following types are acceptable:
Basic Eligibility Requirements
To qualify for a reverse mortgage, you must:
- Be 55 years of age or older
- Own your home or have significant equity
- Occupy the home as your primary residence
Equity Requirements
The amount of loan proceeds available varies based on age and other factors, but
homeowners must have a strong equity position to obtain a reverse mortgage.
Eligible Property Types
A variety of home types may qualify for reverse mortgage financing, including:
- Single-family residences
- Townhomes
- Condominiums in FHA-approved communities
- 2–4 unit multi-family homes
- Manufactured homes that meet HUD and FHA requirements
Documentation & Financial Responsibilities
Applicants must demonstrate the ability to maintain their housing-related expenses.
This typically includes providing proof of income and reviewing recurring property charges such as:
- Property taxes
- Homeowners insurance
- HOA fees (if applicable)
It is important to remember that the homeowner is responsible for paying these expenses
and maintaining the home for the life of the reverse mortgage.
Required Counseling Session
All reverse mortgage applicants must complete a counseling session with a
HUD-approved counseling agency. HUD provides a list of available agencies
based on the property’s location.
Learn more how a reverse mortgage works.
Learn more about reverse mortgage safety at NRMLA.