REVERSE MORTGAGE ELIGIBILITY GUIDE
Reverse Mortgage Requirements
Do You Qualify for a Reverse Mortgage?
If you’re considering a reverse mortgage, one of the first questions you probably have is, “Do I qualify?”
Reverse mortgage qualification is different from traditional mortgage qualification. Eligibility considers factors such as your age, home equity, property eligibility, financial assessment, and ability to meet ongoing homeownership responsibilities.
At Platinum Lending Solutions, we help homeowners throughout Oregon and Washington understand the qualification process before they ever submit an application. Our goal is to make the process simple, transparent, and stress-free so you can confidently determine whether a reverse mortgage fits your retirement goals.
Qualification Looks at the Full Picture
Age is only one part of reverse mortgage eligibility. Your property, available equity, financial responsibilities, and counseling requirements all play a role.
Basic Reverse Mortgage Eligibility Requirements
Most reverse mortgages available today are Home Equity Conversion Mortgages (HECMs), which are insured by the Federal Housing Administration (FHA).
While proprietary (jumbo) reverse mortgages may have slightly different guidelines, many of the basic requirements are similar.
In General, You Must:
✓ Be 62 years of age or older
✓ Own your home or have sufficient equity
✓ Live in the home as your primary residence
✓ Complete HUD-approved counseling for HECM loans
✓ Demonstrate the ability to maintain the home and pay ongoing property expenses
The 6 Main Reverse Mortgage Requirements
Let’s look at each requirement in more detail.
1
You Must Be at Least 62 Years Old
To qualify for a federally insured HECM reverse mortgage, the youngest borrower on the loan must be at least 62 years old.
Your age plays an important role in determining how much you may be eligible to borrow.
In general:
• Older borrowers may qualify for larger loan amounts.
• Younger borrowers may qualify for smaller loan amounts.
• Age is considered alongside home value, interest rates, and the applicable lending limits.
Some proprietary reverse mortgage programs may offer additional flexibility, but age remains an important qualification factor.
2
Your Home Must Be Your Primary Residence
Reverse mortgages are designed for homeowners who live in the property as their primary residence.
That means the home must be where you spend most of the year.
Eligible Property Types Typically Include
• Single-family homes
• FHA-approved condominiums
• Some manufactured homes that meet FHA guidelines
• Two- to four-unit properties, provided you occupy one of the units as your primary residence
Vacation homes and investment properties generally do not qualify for HECM reverse mortgages.
3
You Need Sufficient Home Equity
A reverse mortgage uses your home’s equity as the basis for the loan.
You do not need to own your home free and clear, but you must have enough equity so that any existing mortgage can be paid off at closing using the reverse mortgage proceeds.
The amount you may qualify for depends on several factors, including:
• Your age
• Your home’s appraised value
• Current interest rates
• FHA lending limits for HECM loans
• The type of reverse mortgage you choose
Homeowners in Oregon and Washington have experienced significant appreciation in many markets over the past several years, which may result in more available equity than they realize.
4
Financial Assessment
Unlike traditional mortgages, reverse mortgages don’t require borrowers to qualify based on monthly income to make mortgage payments.
However, lenders do conduct a financial assessment to ensure borrowers can continue meeting the ongoing responsibilities of homeownership.
The Assessment Generally Reviews
• Income sources
• Assets
• Existing debts
• Credit history
• Payment history
• Property tax history
• Homeowners insurance history
The purpose isn’t to qualify you for a required monthly principal and interest payment.
Instead, the financial assessment helps determine whether you can continue paying property taxes, homeowners insurance, HOA dues if applicable, and routine home maintenance.
5
HUD-Approved Counseling
One of the strongest consumer protections included with HECM reverse mortgages is mandatory counseling.
Before your reverse mortgage can close, you’ll complete a session with an independent HUD-approved reverse mortgage counselor.
During This Session, You’ll Learn:
• How reverse mortgages work
• Your financial responsibilities
• Loan repayment
• Payment options
• Alternatives that may be available
• Questions to consider before moving forward
This counseling is designed to help you make an informed decision and ensure you fully understand the program.
6
The Property Must Meet FHA Standards
Like other FHA-insured loans, the property must meet certain eligibility standards.
An appraisal is completed as part of the process.
The Appraisal Reviews
• Current market value
• Property condition
• Safety issues
• Structural concerns
If repairs are required, they may need to be completed before or after closing depending on the circumstances and loan program.
What If You Still Have a Mortgage?
You do not have to own your home free and clear.
Many people mistakenly believe they must own their home outright to qualify.
That’s not true.
You may still qualify if you have an existing mortgage, provided there is enough equity to pay off the remaining loan balance with the reverse mortgage proceeds.
In fact, paying off an existing mortgage is one of the most common reasons homeowners choose a reverse mortgage because it eliminates their monthly principal and interest payment.
What Types of Homes Qualify?
Properties That May Qualify
✓ Single-family residences
✓ FHA-approved condominiums
✓ Some manufactured homes
✓ Two- to four-unit owner-occupied properties
Properties That Generally Do Not Qualify
× Vacation homes
× Second homes
× Investment properties
× Most co-ops
If you’re unsure whether your property qualifies, we can review it with you during your consultation.
Reverse Mortgage Requirements for Oregon & Washington Homeowners
Whether your home is in Oregon or Washington, the basic HECM qualification guidelines are generally the same.
Homeowners who have built substantial equity over time may have more borrowing capacity available than they realize.
Additionally, homeowners with higher-value properties may want to explore proprietary (jumbo) reverse mortgage options that can provide financing above FHA lending limits.
As an independent mortgage broker, Platinum Lending Solutions has access to multiple reverse mortgage programs and can help determine which option right fits your property and financial goals.
Common Reasons Someone May Not Qualify
Although many homeowners are eligible, a reverse mortgage may not be appropriate in every situation.
× You’re under age 62.
× The property isn’t your primary residence.
× There isn’t enough equity available.
× Property taxes or homeowners insurance cannot be maintained.
× The property doesn’t meet minimum program requirements.
If a reverse mortgage isn’t the right solution today, we’ll explain why and discuss other financing options that may better meet your needs.
Frequently Asked Questions
Does my credit score matter?
There is no universal minimum credit score for a HECM reverse mortgage. However, lenders review your overall financial profile and payment history as part of the financial assessment.
Can I qualify if I’m retired?
Yes. Being retired does not prevent you from qualifying. Income sources such as Social Security, pensions, or investment income may be considered during the financial assessment.
Do both spouses need to be 62?
For a HECM loan, the youngest borrower must generally be at least 62 years old. If one spouse is younger, special rules regarding eligible non-borrowing spouses may apply.
Can I qualify if I still owe money on my mortgage?
Yes. As long as there is sufficient equity to pay off the existing mortgage at closing, many homeowners can qualify.
How long does the qualification process take?
The timeline varies depending on the appraisal, counseling, underwriting, and documentation. During your consultation, we’ll provide an estimated timeline based on your situation.
Explore My Reverse Mortgage Options
Every homeowner’s situation is unique, and the easiest way to determine your eligibility is with a personalized review.
At Platinum Lending Solutions, we’ll evaluate your age, home equity, property type, and financial goals, explain the available reverse mortgage programs, and answer your questions in plain language. There is no cost and no obligation.
If you’re a homeowner in Oregon or Washington, request a complimentary reverse mortgage consultation. We’ll help you understand whether you meet the applicable requirements and whether a reverse mortgage fits your goals.
