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To qualify for a reverse mortgage, the borrower must meet several requirements:

  1. Age: The borrower must be at least 62 years old.
  2. Property type: The home must be the borrower’s primary residence, and it must be a single-family home, a two-to-four unit property, a townhouse, a condo, or a manufactured home that meets FHA requirements.
  3. Equity: The borrower must have enough equity in their home to qualify for a reverse mortgage. The amount of equity required varies depending on the borrower’s age, the value of the home, and the current interest rates.
  4. Financial Assessment: Borrowers are subject to a financial assessment to ensure they have the ability to pay property taxes, insurance, and other fees.
  5. Counselling: Borrowers are required to undergo counselling from a HUD-approved counsellor to ensure they understand the terms and obligations of the reverse mortgage. (US only)

It’s important to note that while reverse mortgages can provide a source of income, they also come with costs and risks. Borrowers should carefully consider their options and consult with a financial professional before deciding to pursue a reverse mortgage.