Age qualification: All borrowers listed on title must be 62 years old (although some private-label reverse mortgages go down to age 55). If one spouse is under 62, it might be possible to get a reverse mortgage. However, the loan officer will need to collect additional information upfront to determine eligibility.
Primary lien: A reverse mortgage must be the primary lien on the home. Any existing mortgage must be paid off using the proceeds from the reverse mortgage.
Occupancy requirements: The property used as collateral for the reverse mortgage must be the primary residence. Vacation homes and investor properties do not qualify.
Taxes and Insurance: Borrowers must remain current on real estate taxes, homeowners insurance, and other mandatory obligations, including condominium fees.
Property Condition: Borrowers are responsible for completing mandatory repairs and maintaining the condition of the property.
Conveyance of the mortgaged property by will or operation of law to the estate or heir after mortgagor’s death: When a reverse mortgage becomes due and payable upon the death of the last surviving borrower and the property is conveyed by will or operation of law, the estate or heirs (or parties if multiple heirs) may satisfy the reverse mortgage debt by paying the lesser of the mortgage balance or 95% of the current appraised value of the property.