Age qualification: All borrowers listed on title must be 62 years old. A husband or wife with a spouse younger than 62 may obtain a reverse mortgage, but the name of the younger spouse must must come off the title.
Primary lien: A reverse mortgage must be the primary lien on a home. Any prior mortgage must be paid to acquire the reverse mortgage. (Reverse mortgage proceeds can be used,)
Occupancy requirements: The property used as collateral for the reverse mortgage must be your primary residence.
Taxes and Insurance: You must remain current on your real estate taxes, homeowners insurance, and other mandatory obligations, including condominium fees, or you are susceptible to default.
Property Condition: You are responsible for completing mandatory repairs and maintaining the condition of your property.
Conveyance of the mortgaged property by will or operation of law to the estate or heir after mortgagor's death: When a HECM loan becomes due and payable as a result of a mortgagor's death and the property is conveyed by will or operation of law to the mortgagor's estate or heirs (including a surviving spouse who is not on title and therefore not obligated on the HECM note) that party (or parties if multiple heirs) may satisfy the HECM debt by paying the lesser of the mortgage balance or 95% of the current appraised value of the property.