Age requirement
All homeowners listed on the title generally must be at least 62 years old. Some private reverse mortgage programs may allow borrowers as young as 55. If one spouse is under 62, a reverse mortgage may still be possible, but the lender will need to review additional information to determine eligibility.
Your home must be free of a primary mortgage
A reverse mortgage has to be the main loan on your home. If you still owe money on an existing mortgage, it must be paid off—usually using proceeds from the reverse mortgage.
You must live in the home
The home used for a reverse mortgage must be your primary residence. Second homes, vacation properties, and rental or investment properties do not qualify.
You stay responsible for taxes and insurance
Even though you don’t make monthly mortgage payments, you must continue to pay your property taxes, homeowners insurance, and any required fees, such as condominium or HOA dues.
The home must be maintained
You are responsible for keeping the home in good condition and completing any required repairs identified during the loan process.
What happens after the last borrower passes away
When the last surviving borrower dies, the reverse mortgage becomes due. At that point, the home typically passes to the estate or heirs. The heirs can keep the home by paying off the loan balance or 95% of the home’s current appraised value—whichever amount is less. If they choose not to keep the home, it can be sold, and any remaining equity belongs to the estate or heirs.