The main reverse mortgage requirements for a HECM: the youngest borrower must be 62 or older, the home must be your primary residence, and you need significant equity to pay off any existing mortgage. The lender runs a financial assessment, and you must complete HUD-approved counseling before you apply. After closing you must keep paying taxes, insurance and upkeep.
- The youngest borrower must be 62 or older, and the home must be your primary residence.
- You need significant equity. Any existing mortgage is paid off from the proceeds or with your own funds.
- Lenders run a financial assessment, and HUD-approved counseling is required before you apply.
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The youngest borrower must be 62 or older, the home must be your primary residence, and you need significant equity.
- Age 62 or older. This applies to the youngest borrower. A younger spouse can sometimes be an "eligible non-borrowing spouse" with certain protections; ask a lender.
- Primary residence. You must live in the home most of the year.
- Enough equity. You must own the home outright, or the HECM must be able to pay off your existing mortgage, with your own funds covering any gap.
- No delinquent federal debt, such as federal tax debt or defaulted federal student loans, unless it is paid at closing or resolved (HUD Handbook 4000.1).
- A financial assessment. The lender reviews your credit history, income, and assets to confirm you can keep paying property taxes, insurance, and other charges. If the review raises concerns, the lender may require a Life Expectancy Set-Aside, which reserves part of the proceeds to pay those charges.
- HUD-approved counseling before you apply. See counseling explained.
Which homes qualify?
- A single-family home, or a 2–4 unit home where you live in one unit
- A condominium in an FHA-approved project, a site condominium, or a unit with FHA Single-Unit Approval (HUD Handbook 4000.1)
- A manufactured home that meets FHA requirements, including being built on or after June 15, 1976 and on a permanent foundation (HUD Handbook 4000.1)
- The home must meet FHA property standards. Required repairs may be set aside from the loan proceeds.
What must you keep doing after closing?
Eligibility doesn't end at closing. You must keep living in the home, keep paying property taxes, homeowners insurance, and any HOA dues, and keep the home in reasonable repair. See can you lose your home with a reverse mortgage?
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| Question | If yes |
|---|---|
| Is the youngest owner 62+? | ✓ Meets the age requirement |
| Do you live in the home most of the year? | ✓ Meets the occupancy requirement |
| Is your mortgage balance well below half your home's value? | ✓ Likely enough equity (rough rule of thumb, not a guarantee) |
| Can you comfortably cover taxes and insurance? | ✓ More likely to pass the financial assessment |
Try the rough estimator to see how age, value, and balance interact.
What does the financial assessment look at?
The lender reviews your credit history, your cash flow and residual income, and any extenuating circumstances or compensating factors.
Federal rules require this review before approval to judge whether you can keep up with the loan's terms and whether a HECM is a sustainable choice for you (24 CFR 206.37(b)). If your credit history falls short, the lender must consider and document extenuating circumstances, such as a past illness, and any compensating factors. A HUD-registered underwriter must approve the assessment. It must not discriminate because of race, color, religion, sex, national origin, familial status, disability, marital status, sexual orientation, gender identity, source of income or the location of the property.
What title and insurance rules apply to the home?
You must hold the home in fee simple or under a qualifying long-term lease, insure it against hazards, and carry flood insurance if it sits in a FEMA special flood hazard area.
A leasehold qualifies only if the lease runs long enough, for example 99 years if it is renewable (24 CFR 206.45(a)). The lender must get a title insurance policy. If the home is in a special flood hazard area, the community must take part in the National Flood Insurance Program and you must keep flood insurance for as long as the loan is insured (24 CFR 206.45(c)). You must also insure the home against fire and other hazards (24 CFR 206.27(b)(2)).
Rules in this section checked against the current eCFR text on October 31, 2026.
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Frequently asked questions
What is the minimum age for a reverse mortgage?
For an FHA-insured HECM, the youngest borrower must be at least 62. Some private (proprietary) reverse mortgages have different rules.
Can I get a reverse mortgage if I still have a mortgage?
Often, yes. The existing mortgage must be paid off at closing, usually from the HECM proceeds. If the HECM can't cover the full payoff, you'd need to bring your own funds.
Is there a credit score requirement?
HUD doesn't set a minimum credit score for HECMs (HUD Handbook 4000.1: "There is no MDCS for a HECM"), but lenders perform a financial assessment of your credit history and income. The result can affect approval or require a set-aside for taxes and insurance.
Do I have to complete counseling?
Yes. Every HECM borrower must complete counseling with a HUD-approved counselor before applying.
Who wrote this guide
This guide is written and maintained by the Clear Reverse editorial team from the primary sources listed below. The "Last updated" date at the top shows when it last changed. Clear Reverse is an education service, not a lender or mortgage broker, and nothing here is legal, tax or financial advice. Spotted an error? Email hello@clearreverse.com. How we research and update our guides.
Sources
- HUD: HECM program page (maximum claim amount table) (lists the 2026 limit of $1,249,125, valid through Dec 31, 2026; accessed Oct 30, 2026)
- HUD Mortgagee Letter 2025-22 (2026 HECM limit) (dated Dec 11, 2025; limit applies to FHA case numbers assigned Jan 1 through Dec 31, 2026; accessed Oct 30, 2026)
- HUD: Find a HUD-approved housing counselor (accessed Oct 30, 2026)
- CFPB: Reverse mortgages (consumer tools) (accessed Oct 30, 2026)
- HUD Handbook 4000.1, Single Family Housing Policy Handbook (HECM sections II.B and III.B) (Update 18, issued Aug 12, 2026; accessed Oct 30, 2026)
- 24 CFR 206.37 (credit standing and financial assessment), eCFR (current text accessed Oct 31, 2026)
- 24 CFR 206.45 (eligible properties, title and flood insurance), eCFR (current text accessed Oct 31, 2026)
- 24 CFR 206.27 (when the loan is due; non-recourse; tax deferral), eCFR (current text accessed Oct 31, 2026)
Program rules change, so confirm details with a HUD-approved counselor and a licensed lender.