You and your spouse need to have the required age(depends by State) and enough equity in order to be eligible for a reverse mortgage.
One of the strengths of the HECM loan program is that there are not overly restrictive requirements, making these loans easier to qualify for than other financial products such as a mortgage refinance, home equity loan, or home equity line of credit (HELOC).
You are eligible for a reverse mortgage if:
You are 62 years of age or older
You own your home and use it as your primary residence
The house is single family, multi-family (up to 4), or an approved condominium or manufactured home
You own your own home free and clear or only have a small amount left to pay on the existing mortgage
Your home is in good condition prior to taking out the loan
You must meet with a HUD approved counselor before obtaining a reverse mortgage to determine if the product is suitable for your needs. The counseling sessions will help you understand how the loan works and different alternatives that are available to you.
All prospective borrowers must also undergo a financial assessment to qualify. This assessment makes sure that the borrower can pay for:
Property taxes
Homeowner’s insurance
Basic home maintenance
Home Owner’s Association (HOA) fees if applicable
