If you’re nearing retirement and looking at options to stay in your home while accessing your equity, a reverse mortgage might be worth exploring. But who actually qualifies?
Let’s go over the key requirements:
📅 Age
For the FHA-insured Home Equity Conversion Mortgage (HECM), at least one borrower must be 62 years or older.
Some proprietary (non-FHA) reverse mortgage products—like those available through OneTrust Home Loans—may be available to homeowners as young as 55, depending on the state and program.
🏡 Property Type
You must own and live in the home as your primary residence. Eligible properties include:
- Single-family homes
- Two- to four-unit properties (as long as you live in one unit)
- HUD-approved condos
- Some manufactured homes that meet FHA or investor guidelines
Vacation homes and investment properties are not eligible.
💰 Home Equity
You must have sufficient equity in your home. You don’t need to own it outright, but any existing mortgage must be paid off—often using proceeds from the reverse mortgage.
🧾 Financial Qualifications
All borrowers undergo a financial assessment to confirm their ability to meet ongoing loan obligations—like property taxes, homeowners insurance, and maintenance. This is in place to help ensure long-term success.
🧠 Counseling Requirement
For HECM loans, HUD-approved reverse mortgage counseling is required. This session is designed to make sure you understand all aspects of the loan and can make an informed decision.
Reverse mortgages aren’t one-size-fits-all—and they’re not the right choice for everyone. But for some homeowners, they can provide greater flexibility in retirement.
Let’s talk through it together and see if it makes sense for your situation. Call or message me today.
Disclosure: The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. This is not tax advice. Consult a tax professional. These materials are not from HUD or FHA and were not approved by HUD or a government agency. This is an Advertisement. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice. For more information on Reverse Mortgages, visit: https://onetrusthomeloans.com/reversemortgage-disclosures/
