Who qualifies for a reverse mortgage, and how much equity do I need?

What are the basic requirements?

• Age 62 or older: every borrower on a HECM. A younger spouse can still be protected; see reverse mortgages when a spouse is under 62.
• Primary residence: you live in the home as your main home.
• Enough equity: to pay off any current mortgage and still leave you a meaningful benefit.
• HUD-approved counseling: an independent session before you apply. Family members are welcome.
• A financial assessment: a review of your income, credit, and history of paying property taxes and insurance.
• An eligible property: single-family homes, 2–4 unit homes you live in, FHA-approved condos, and some manufactured homes.

How much equity do I need?

Often around half the home's value or more, but it depends on three things: the age of the youngest borrower (older means more), interest rates (lower means more), and your home's value (FHA counts it only up to $1,249,125 in 2026). Whatever you still owe on your current mortgage has to be paid off from the reverse mortgage at closing.

If you have a low-rate first mortgage you'd rather keep, a reverse mortgage second may work instead.

What does the financial assessment look at?

It isn't about hitting a certain income. It checks that the loan is sustainable for your whole retirement:

• Your income against your regular bills
• Your credit, especially the last couple of years
• Whether you've paid property taxes, insurance, and HOA dues on time

If there are gaps, the loan can still work, but HUD may require a set-aside from the loan to pay your future property taxes and insurance for you. Many people actually like that.

Can I get one with bad credit?

Often, yes. There's no minimum credit score on a HECM. What matters most is your recent history with housing costs and a reasonable explanation for any past problems. A set-aside can make up for a weaker history.

Do I need income to qualify?

You don't need a job. Social Security, a pension, retirement accounts, and other income all count. The review looks at whether you can keep up with taxes, insurance, and upkeep over time.

Example scenario (illustrative)

A 70-year-old widower in Fort Worth has a $400,000 home and owes $120,000. His Social Security covers his bills, but two late property-tax payments show up after his wife passed. He qualifies with a set-aside that pays his taxes and insurance going forward, his mortgage payment goes away, and he has a line of credit left over.

Our take

Don't guess whether you qualify. Most people I talk to are surprised in one direction or the other. Give me your age, your home's rough value, and what you owe, and I'll tell you in one conversation whether a reverse mortgage makes sense, before anyone pulls credit.