Learn more about the requirements for a reverse mortgage:

Borrower Requirements:

  • Be 62 years of age or older

  • Own the property outright or paid-down a considerable amount

  • Occupy the property as your principal residence

  • Not be delinquent on any federal debt

  • Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.

  • Participate in a consumer information session given by a HUD- approved HECM counselor

Property Requirements:

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the borrower

  • HUD-approved condominium project

  • Individual Condominium Units that meet FHA Single Unit Approved requirements

  • Manufactured home that meets FHA requirements

Financial Requirements

  • Income, assets, monthly living expenses, and credit history will be verified.

  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

  • Remember proceeds from your reverse mortgage, cash or LOC are non-taxable.

For adjustable interest rate mortgages, you can select one of the following payment plans:

  • Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.

  • Term - equal monthly payments for a fixed period of months selected.

  • Line of Credit - unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.

  • Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home.

  • Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will receive the Single Non-Taxable Disbursement Lump Sum payment plan.

Mortgage Amount Based On

The amount you may borrow will depend on:

  • Age of the youngest borrower or eligible non-borrowing spouse

  • Current interest rate; and

  • Lesser of:

    • appraised value;

    • the HECM FHA mortgage limit of $822,375; or

    • the sales price (only applicable to HECM for Purchase) *

  • Jumbo reverse mortgages (to $3,000,000) are also available. *

  • If you have an existing HECM reverse mortgage new lower rates may make it advantageous for you to refinance to a new HECM reverse mortgage *

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.

Source: US Department of Housing and Urban Development

* Call for information (720) - 951- 3921

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