Reverse Mortgage Eligibility

Factors Affecting Reverse Mortgage Eligibility

To meet the reverse mortgage eligibility requirements, the youngest homeowner must be at least 62 years old, the home must be the homeowner’s primary residence, the homeowner must have sufficient equity in the home to support the reverse mortgage, and the borrower must meet certain financial eligibility requirements established by the Department of Housing and Urban Development (HUD).

The Federal Housing Administration (FHA) reverse mortgage eligibility assessment considers the following key factors:

• Age of the youngest homeowner
• Current value of the property
• Balance on existing mortgage loans
• Current interest rates

Reverse Mortgage Eligibility FAQs

Can a homeowner under age 62 quality for a reverse mortgage?
No, the youngest homeowner must be at least 62 years old.

What if the homeowner is on disability or social security?
The homeowner’s social security or disability status is not taken into account in determining reverse mortgage eligibility.

What if someone living in the household is under age 62?
While the youngest homeowner must be at least 62 years old in order to meet reverse mortgage eligibility requirements, other members of the household can be under 62 years old without affecting the homeowner’s reverse mortgage eligibility.

Can a homeowner who already has a mortgage qualify for a reverse mortgage?
Yes, having a mortgage does not disqualify a borrower from reverse mortgage eligibility. In fact, many borrowers use the proceeds from a reverse mortgage to pay off their primary mortgage, eliminating monthly mortgage payments*.

Does every homeowner over age 62 qualify?
No, there are additional factors other than age that are considered when determining reverse mortgage eligibility. For example, a homeowner may not have enough equity in their home to qualify, or they may not spend enough time in the home for it to be considered their primary residence.

What if there is not enough equity in the house to qualify?
A “shortfall” exists when there is not enough equity built up in a house to cover the existing mortgages on the home. In this case, the homeowner cannot get a reverse mortgage loan until the balance of the existing mortgage is lowered or paid off. The borrower can “pay down” the mortgage balance to increase home equity and improve their reverse mortgage eligibility.

Learn More Information About Reverse Mortgage Eligibility

If you need help evaluating the requirements for reverse mortgage eligibility, Citizens Lending Group is here to provide you with more information. Call us or reach us through our online form to find out if you meet the reverse mortgage requirements and if a reverse mortgage is right for you.

*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. Not tax advice, consult a tax professional.