Eligibility

Qualifications are similar for all types of reverse mortgages. Generally, they are available to anyone living in any state, the District of Columbia, or Puerto Rico. You must be 62- years -old or more, and the property on which you are taking the reverse mortgage must be your primary residence. In the case of a HUD-sponsored loan (HECM), the home must meet minimum standards, although if repairs are required to bring the house up to HUD specifications, proceeds from the loan may be used for that purpose.

If there are multiple owners of the home, all owners must apply and sign the mortgage papers, and all borrowers must be at least 62-years-old. The age of the youngest borrower will be used for the purpose of calculating the amount you qualify for. All owners must also use the home as their primary residence. HECM and Fannie Mae reverse mortgages also require the borrower to attend a counseling session from an authorized counseling service or from the lender.

During this session, you are advised of the program, its benefits, and your obligations. The qualifications for the Financial Freedom loan are almost identical to the HECM and Fannie Mae reverse loan products, although the Financial Freedom plan requires homes to have a minimum value of $75,000.

The type of home you have also makes a difference. Single family units are eligible for all types of reverse mortgages. Some reverse mortgage programs also allow you to participate if you have a two- to four-unit dwelling, condominium, planned development, or manufactured home. Mobile homes and cooperatives are usually not eligible for a reverse mortgage.

Unlike traditional mortgages, a reverse mortgage does not have any income qualifications, because you do not need to make payments.