What are the Qualifications for a Reverse Mortgage?
The qualifications to obtain a reverse mortgage are straightforward:
- Must be aged 62 or older for an FHA Insured Home Equity Conversion Mortgage, also known as a HECM
- Must be aged 55 or older for a Proprietary Reverse Mortgage, better known as a Jumbo Reverse Mortgage
- Must be your primary residence
- Must have equity in the home
How much can I borrow?
If you wonder how much you would be able to receive from a reverse mortgage, that depends on:
- the age of the youngest homeowner
- the appraised value of the home
- the expected rate of interest
The older you are, the more money I can lend!
What are the loan requirements?
As with any loan, a reverse mortgage includes a few basic requirements once you begin receiving the funds. Again, these are straightforward and common sense:
- Ongoing property taxes, insurance, and any homeowner’s association dues (HOA) must continue to be paid
- Home maintenance costs must be paid
- The home must remain your primary residence
Access to Equity:
- A reverse mortgage will pay off any mortgages and eliminate the monthly payments
- You can access additional equity through a Line of Credit, lifetime payments, lump-sum payment, or a combination
- Use a set-aside to pay the property taxes and insurance
Lending Limits 2026:
FHA Insured HECM: $1,249,250 = maximum loan amount
Jumbo/Proprietary Reverse Mortgage: $4,000,000 = maximum loan amount
I served many clients in similar situations. The bottom line is to make an appointment to talk with a local, seasoned, reverse mortgage professional. A good reverse mortgage agent is adept at customizing and exploring all sides of various solutions that are unique to each situation.
Please do not hesitate to contact me with questions, to run a scenario showing you how a Reverse Mortgage would benefit you, or for future articles! Serving the Greater Bay Area, all of California and 48 states!
