Reverse Mortgage Requirements in 2026: Do You Qualify?

The reverse mortgage requirements in 2026 come down to a handful of items. To qualify for a HECM, at least one borrower must be age 62 or older, the home must be your primary residence, you need enough equity, and you complete a HUD-approved counseling session. A financial assessment confirms you can keep up with property taxes and homeowners insurance. Certain proprietary reverse programs may be available to borrowers as young as 55.

A reverse mortgage is a home-secured loan, so, like any loan, it has to be repaid. The good news is that qualifying rests mostly on your age, your home, and your equity rather than on a high credit score or a large monthly income. Below is each requirement, followed by what can disqualify you.

The Core Reverse Mortgage Requirements at a Glance

Here is the short version of the reverse mortgage requirements for a HECM in 2026, with each item explained in more detail below.

Age Requirements: 62 and Up

The best-known of the reverse mortgage requirements is age. For a Home Equity Conversion Mortgage, the FHA-insured reverse mortgage most homeowners use, at least one borrower must be 62 or older. If one spouse is younger than 62, you can often still proceed by naming the younger spouse as an eligible non-borrowing spouse, which lets them remain in the home under certain protections after the borrowing spouse passes away.

If you are in your late fifties, you are not automatically out of options. Certain proprietary reverse mortgage products may be available to borrowers as young as 55, depending on the state and program. These are private loans rather than FHA-insured HECMs, so the terms differ, and Brian can tell you quickly whether a 55-plus program fits your goals.

Home and Occupancy Requirements

Your home has to be your primary residence, the place you live for the majority of the year. A vacation cabin near Sunriver or a rental in Redmond does not qualify on its own, because the program is built around helping people stay in the home they actually live in.

Occupancy is not just a starting requirement, it is an ongoing one. You keep the title to and ownership of your home, and there is no required monthly mortgage payment, but you remain responsible for property taxes, homeowners insurance, and any HOA dues, for keeping the home in good repair, and for continuing to live there as your primary residence. If you move out permanently or stop meeting these obligations, the loan can become due and payable.

Equity and the Financial Assessment Requirements

You need meaningful equity. There is no single fixed percentage, because the amount you can borrow depends on the age of the youngest borrower, current interest rates, and your home's appraised value, up to the 2026 FHA HECM lending limit of $1,249,125. As a rough guide, many borrowers have paid off their mortgage or owe well under half of what the home is worth. If you still owe, reverse mortgage proceeds are typically used to pay that off first, which removes the monthly payment.

The financial assessment is the part people ask about most. It is not a traditional income-and-credit approval. Instead, the lender reviews your credit history and residual income to confirm you can reasonably keep up with property taxes, insurance, and upkeep. There is no minimum credit score cutoff. If the assessment raises a concern, it does not automatically mean denial, a portion of your proceeds may be set aside in a Life Expectancy Set-Aside to cover future taxes and insurance.

Eligible Property Types for a Reverse Mortgage

Not every property qualifies, but most homes across Central Oregon do. These property types are generally eligible for a HECM:

• Single-family homes, the most common case in Bend, Sisters, and Prineville.
• Two to four unit properties, as long as you live in one of the units as your primary residence.
• FHA-approved condominiums, or individual units that qualify through FHA single-unit approval.
• Certain manufactured homes that meet FHA requirements, generally built after June 1976, on a permanent foundation and titled as real property.

The home also has to meet FHA property standards. A house in significant disrepair may need certain repairs completed, sometimes with funds set aside at closing.

HUD Counseling Is a Required Step

Before you can obtain a HECM, every borrower completes a reverse mortgage counseling session with an independent, HUD-approved counselor. This is a firm requirement, and it exists to protect you. The counselor does not work for the lender, so you get an unbiased second opinion on how the loan works, what it costs, and whether alternatives might serve you better.

Counseling can usually be done by phone or in person, typically takes about an hour, and ends with a certificate you will need before the application moves forward. Brian can point you to approved counselors serving Deschutes County so this step is simple to schedule.

What Can Disqualify You From a Reverse Mortgage

Knowing the requirements also means knowing what can stop an application. The most common reasons a homeowner does not qualify include:

• Being under the age minimum, younger than 62 for a HECM, with no proprietary 55-plus program that fits.
• The home is not your primary residence, such as a second home or an investment property.
• Insufficient equity, meaning you owe too much relative to the home's value for the loan to pay off the existing balance.
• An ineligible property type or a condo project that is not FHA approved.
• Being delinquent on federal debt, such as federal taxes or a federal student loan, which usually must be resolved first.
• A financial assessment concern that cannot be addressed even with a set-aside for taxes and insurance.

Many of these are fixable. A condo can pursue FHA approval, a delinquent federal debt can be brought current, and a home needing repairs can often still move forward with a repair set-aside. Being told no today does not always mean no forever.

Frequently Asked Questions