Learning Center
HECM Eligibility Requirements
Who qualifies for a federally insured reverse mortgage? Here are the core requirements — age, occupancy, equity, counseling, and financial assessment — in plain English.
Written by Mike Elachkar, President, Ennkar
A HECM (Home Equity Conversion Mortgage) is the most common federally insured reverse mortgage. Before you explore disbursement options or compare it to a HELOC, it helps to know whether you meet the basic eligibility criteria. This guide covers the standard requirements — your licensed loan officer can confirm specifics for your home and situation.
Eligibility is not a guarantee of approval. Lenders evaluate each application individually. Use our free estimate tool for an educational look at potential proceeds.
Core HECM Requirements
- At least one borrower age 62 or older
- Home is your primary residence (you live there most of the year)
- Sufficient home equity to support the loan
- Property meets FHA eligibility standards
- Completion of HUD-approved counseling
- Financial assessment — ability to pay taxes, insurance, and maintenance
- No federal debt in default (or satisfactory repayment plan)
Age Requirement
The youngest borrower on the loan must be at least 62 years old at closing. Younger spouses can be listed as non-borrowing spouses, which provides deferral of due-and-payable status if the borrowing spouse passes away first — see our guide on non-borrowing spouses for details.
Proprietary jumbo reverse mortgages may be available to homeowners as young as 55 in some states. Those are separate products with different terms — not FHA-insured HECMs.
Home Equity & Property Type
You do not need to own your home free and clear, but you need enough equity for the HECM to make sense after paying off any existing mortgage and closing costs. Eligible properties include single-family homes, FHA-approved condos, and qualifying manufactured homes. The property must be your primary residence — not a rental or vacation home.
HUD Counseling & Financial Assessment
Every HECM borrower must complete counseling with a HUD-approved housing counselor before closing. Counseling is independent of your lender and helps you understand the program, alternatives, and your obligations.
Lenders also conduct a financial assessment to evaluate your ability to pay property taxes, insurance, and maintenance. If the assessment raises concerns, a Life Expectancy Set-Aside (LESA) may be established from loan proceeds to cover future property charges.
Frequently Asked Questions
What is the minimum age for a HECM?
Can I get a HECM if I still have a mortgage?
Does my home type matter for HECM eligibility?
What is the financial assessment on a HECM?
Is HUD counseling required before I can close?
These answers are for educational purposes only and do not constitute financial, legal, or tax advice. This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.
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This is not a commitment to lend. Ennkar, Inc. NMLS #976231. Licensed mortgage company in 16 states. Not all products available in all states. View licensing information · NMLS Consumer Access.