If you’re a homeowner aged 62 or older looking to access your home equity without selling, a reverse mortgage may be the right solution.  However, qualifying requires meeting specific criteria, including age, credit history, income, and property standards.

This guide explains everything you need to know about reverse mortgage qualifications and requirements in 2025, including key eligibility factors, how lenders evaluate applicants, and steps to improve your chances of approval.

ARLO teaching reverse mortgage eligibility & qualifications

Quick Eligibility Check

Here’s a general overview of what it takes to qualify:

  • Age: At least 62 for an FHA-insured reverse mortgage; some private programs allow 55+
  • Home Equity: Must be enough to pay off any existing mortgage or cover the difference at closing
  • Credit History: No minimum credit score is required, but lenders review payment history
  • Income: Must meet a minimum residual income requirement to cover property expenses
  • Primary Residence: Must be your primary home and meet FHA/HUD property standards

If you meet these general qualifications, you may be eligible.  Let’s go over each requirement in detail.

Reverse Mortgage Requirements: A Closer Look

Age Requirement

To qualify for a government-insured Home Equity Conversion Mortgage (HECM), you must be at least 62 years old.

Some proprietary reverse mortgage programs allow homeowners as young as 55, depending on the lender and state regulations.

If your spouse is under 62, they may still be included as a non-borrowing spouse, ensuring they can remain in the home even if the borrowing spouse passes away.

Home Equity Requirement

Your reverse mortgage must be enough to pay off your existing mortgage balance.  If it doesn’t cover the full amount, you must bring cash to closing.

Generally, homeowners need at least 50% home equity to qualify, but the exact amount depends on factors like home value, interest rates, and borrower age.

To estimate how much you might qualify for, use our reverse mortgage calculator.

Credit History

Reverse mortgages do not require a specific credit score, but lenders will review your payment history over the past 24 months.  This includes:

  • Mortgage payments
  • Property taxes
  • Homeowners insurance
  • HOA fees (if applicable)

If you have had late payments, you may be required to set up a Life Expectancy Set-Aside (LESA).  A LESA sets aside a portion of your loan proceeds to ensure that property taxes and insurance are paid on time.

Income Requirement

Reverse mortgages use residual income instead of a debt-to-income ratio to determine if you qualify.  Residual income is what remains after paying essential expenses such as utilities, food, and debts.

2025 Residual Income Requirements by Region:

2025 Regional Residual Income Requirements

Family SizeNortheastMidwestSouthWest
1$540$529$529$589
2$906$886$886$998
3$946$927$927$1,031
4 or more$1,066$1,041$1,041$1,160
This table reproduces the "Table of Residual Incomes by Region", which is a part of a Cash Flow/Residual Income Analysis. It shows the required residual income by family size for the regions of Northeast, Midwest, South, and West.

If you do not meet these requirements, a LESA may be required to ensure that your property expenses are covered.

For more details, visit our reverse mortgage financial assessment guide.

Government vs. Private Reverse Mortgages: Qualification Differences

FactorHECM (Government)Jumbo/Private
Age62+55+ (some states)
Loan Limit$1,209,750No limit
Credit/IncomeFlexible w/ LESAStricter standards
PropertyHUD standardsLender discretion

Private reverse mortgages may be a better option for high-value homes but typically require stronger income and credit history.  To compare your options, check out our HECM vs. proprietary reverse mortgage guide.

Frequently Asked Questions About Reverse Mortgage Qualifications

Q.

What Percentage of Home Equity Do I Need to Qualify for a Reverse Mortgage?

The amount of home equity required depends on:

  • Your age (or the age of the youngest borrower)
  • Current interest rates
  • HUD guidelines

For an FHA-insured Home Equity Conversion Mortgage (HECM):

  • At 62 years old, you may qualify for a loan amount of around 37% of your home’s value
  • By age 92, that percentage can increase to 72%

If your spouse is under 62, they can still be included as a non-borrowing spouse, but the loan amount will be based on their age.

Jumbo reverse mortgages may be available for homes valued above HUD’s lending limit ($1,209,750 in 2025).  These private loans often allow borrowing at lower percentages but can provide larger loan amounts.

Q.

Who is Not Eligible for a Reverse Mortgage?

  • You are under 62 years old (or under 55 for some private programs)
  • The home is not your primary residence (you must live in it for at least 6 months per year)
  • Your property type isn’t eligible (reverse mortgages are for single-family homes, FHA-approved condos, or 2-4 unit properties if you live in one unit—vacation homes and investment properties do not qualify)
  • You don’t have enough home equity to pay off your existing mortgage or cover any shortfall at closing
  • You can’t afford to pay property taxes, homeowners insurance, and HOA fees—failure to do so can result in foreclosure
Q.

Do I Need to Have a Certain Income to Qualify for a Reverse Mortgage?

Yes, but the income requirements are more flexible than traditional mortgages.

Instead of using a debt-to-income (DTI) ratio, lenders look at your residual income, which is the money left after paying all your monthly expenses.

Example of Residual Income Calculation

  • Monthly Expenses: $2,000
  • Monthly Income: $3,000
  • Debt-to-Income Ratio: 67%
  • Residual Income: $1,000

Even if your debt-to-income ratio is high, having enough residual income can still qualify you for a reverse mortgage.

Q.

What Credit Score Do I Need to Get a Reverse Mortgage?

No minimum credit score is required for a government-insured HECM reverse mortgage.

Instead of focusing on your score, lenders will review:

  • Your credit history (to see if you’ve been making payments on time)
  • Your ability to cover property taxes, homeowners insurance, and other housing expenses

Even if you’ve had credit issues in the past, you may still qualify.

Q.

Who Sets the Rules for Reverse Mortgages?

The Department of Housing and Urban Development (HUD) establishes the rules for HECM reverse mortgages, including:

  • Borrower requirements (such as age and property eligibility)
  • Loan limits
  • Appraisal and underwriting standards

Lender-Specific Rules: While all HECM lenders must follow HUD guidelines, they can set additional criteria, such as income verification requirements.

Jumbo Reverse Mortgages:  These private reverse mortgage programs are not regulated by HUD, so the lenders set their own rules.

Q.

Do I Need to Pay Off My Current Mortgage Before Getting a Reverse Mortgage?

No!  You don’t need to pay off your existing mortgage before applying.  In fact, most borrowers use a reverse mortgage to pay off their existing mortgage, eliminating their monthly payments.

However, if you’ve had late payments on your mortgage, property taxes, or homeowners insurance in the past 24 months, you may need a Life Expectancy Set-Aside (LESA) to cover future property expenses.

How LESA Works

  • A portion of your loan funds is set aside to pay property taxes and insurance.
  • The amount required depends on your age and property expenses—younger borrowers may need a larger LESA.

Tip: If you’ve had any late payments on property-related expenses, tell your lender early.  This helps ensure no surprises in your final loan amount.

Final Thoughts: Are You Ready to Qualify?

If you meet the reverse mortgage requirements, you could eliminate monthly mortgage payments and access your home equity for retirement.

Next Steps: