Who is eligible for an FHA reverse mortgage?
To be eligible for a federally insured Home Equity Conversion Mortgage (HECM), or reverse mortgage, all borrowers must be at least 62 years or older, own and occupy the property, and should have either no mortgage or one small enough to be paid off with the proceeds of the HECM loan. Life estates and living trusts may also qualify. All borrowers must also have attended counseling from a HUD approved counseling agency. The property may be an existing single family home, condominium unit, a manufactured home, or a 2-4 family residential unit as long as the borrower occupies one of the units. Newly constructed residences are also eligible provided that a certificate of occupancy (or equivalent) has been issued for the new home by the local authority, the new home is 100% complete, and the owner is occupying the new home. Both existing and new units must meet HUD eligibility standards.
