HECM Eligibility Requirements

Published by South River Mortgage Team

Content updated Oct 05, 2026

The big picture

Who is eligible for a reverse mortgage?

Explore the borrower, property and financial requirements for a HECM loan below.

You & your household
Understand how age and household circumstances relate to the program.
Your home
Review property type, occupancy and the questions to ask about your home.
Your finances
Explore how income, expenses and credit history are reviewed.
Your preparation
Learn about counseling and information to have ready for a conversation.

Core requirements

What are the requirements for a HECM loan?

To qualify for a HECM loan, you would need to meet the following basic requirements:

Every HECM borrower must be at least 62 years old when the loan closes.
You own your home and have a low mortgage balance
Your property is an eligible property type
You meet certain credit and income requirements

Explore an estimate

Don’t meet the requirements? You may still be eligible. Talk with a Reverse Mortgage Advisor today.

If you don’t meet the basic requirements for a HECM loan, you may still be eligible for a proprietary reverse mortgage. Proprietary programs may vary, so it is always advised to speak to a reverse mortgage lender.

Learn about HomeForLife

Put the information to work

Could you qualify for a reverse mortgage?

Have questions about your circumstances? Explore the eligibility questionnaire or speak with our team.

I’d like to learn more first

YOUR REVERSE MORTGAGE OPTIONS

Check your eligibility

A few details to help us understand your options.

Are you 55 or older?

Learn at your own pace

More detail, when you need it.

Keep the essentials in view. Open a topic for the full requirements, examples and tables.

Age and household circumstances

To be a borrower on a HECM loan, you must be at least 62 years old when the loan closes. There is no maximum age limit for the HECM program.

Show full detailsHide details about age and household circumstances

Age Requirements for a HECM Loan

Documents to Verify Date of Birth

Document Type	Issuer & Description
State-issued driver’s license or ID card	An official document that verifies a person’s identity and authorizes them to operate a motor vehicle (in the case of a driver’s license). An ID card is issued for non-drivers who need an official form of identification. Issued by the Department of Motor Vehicles (DMV) or the equivalent state agency responsible for licensing drivers and issuing identification cards.
Birth certificate	A birth certificate is an official document that records the birth of a person, including key information such as the name, date of birth, place of birth, and parent(s) names. It serves as proof of citizenship and is often required for obtaining other forms of identification. Issued by the Vital Records Office or the Department of Health in the state or territory where the person was born.
Passport	A passport is an official government-issued document that certifies the holder’s identity and citizenship, allowing them to travel internationally. It includes the person’s name, photo, date of birth, place of birth, and a unique passport number. Issued by the U.S. Department of State for U.S. citizens and nationals.
Letter from the Social Security Administration (SSA), and an acknowledgement by SSA, if applicable	This document is a formal letter from the Social Security Administration (SSA) that confirms an individual’s Social Security Number (SSN) or provides information related to benefits, eligibility, or changes in status. Issued by the Social Security Administration (SSA), a federal agency.
Military ID	A military ID is an official identification card issued to active-duty service members, reservists, retirees, and their dependents. It includes the holder’s name, rank, branch of service, and other identifying details. Issued by the Department of Defense (DoD) through the Defense Enrollment Eligibility Reporting System (DEERS).
Voter ID card	A voter ID card is a document issued to registered voters that serves as proof of their eligibility to vote in elections. The card may contain the voter’s name, address, and polling location. Issued by the state or local election office or Board of Elections in the voter’s jurisdiction.
Certificate of United States Naturalization (form N-550 or N-570)	The Certificate of Naturalization is an official document that provides proof of U.S. citizenship for individuals who have successfully completed the naturalization process. Form N-550 is issued to new citizens, while Form N-570 is a replacement certificate. Issued by U.S. Citizenship and Immigration Services (USCIS), an agency within the Department of Homeland Security (DHS).

Every HECM borrower must be at least 62. A younger spouse may be treated as an eligible non-borrowing spouse if program requirements are met. An advisor must confirm that status and explain how it affects proceeds and protections.

Property and occupancy requirements

Most common property types are eligible for HECM loans. If you have a single family home, townhome, manufactured home, modular home, FHA-approved condo, 2-4 unit property, or a mixed use property, then the property may be eligible for a HECM loan.

Show full detailsHide details about property and occupancy requirements

Property Eligibility for a HECM Loan

Eligible Property Types

Single family homes

Townhomes

Manufactured homes (must meet HUD requirements)

Modular homes

FHA-approved condominiums

2-4 unit properties

Mixed use properties

Ineligible Property Type

Cooperative Units (“Co-ops”)

Bed and Breakfast properties

Boarding houses

Manufactured housing that does not meet HUD requirements

Non-FHA-approved condominium units where spot approval was denied

5+ unit properties

New construction properties without certificate of occupancy

Income, credit and ongoing responsibilities

A HECM comes with ongoing responsibilities. After closing, you must continue to live in the home as your principal residence, keep paying property taxes, homeowner’s insurance and any flood insurance or HOA dues, and keep the home in good repair. Lenders review whether you can meet these property charges as part of the HECM financial assessment.

Show full detailsHide details about income, credit and ongoing responsibilities

Income and Credit Score Requirements for a HECM Loan

HECM loans do not have credit score requirements, but they have requirements regarding credit history. Credit requirements for the HECM loan are much more flexible than traditional mortgage loans.

When it comes to approving credit history, the Federal Housing Administration writes that lenders must consider how a HECM could be a solution to financial difficulties.

Installment and Housing Payment Requirements

To meet credit history requirements, you must have made all housing and installment debt payments on time for the last 12 months. You may have had up to 2 late payments in the prior 24 months.

Revolving (Credit Card) Payment Requirements

To meet credit history requirements, you cannot have any payments more than 90 days late on credit card (revolving) accounts in the last 12 months. You can have up to 3 payments made 60 days after the due date on credit card accounts.

Cannot Meet Credit Requirements

It is well known and understood that many people seek a HECM loan due to financial difficulties, and lenders must take this information into account when reviewing credit details. At the same time, the lender must consider how a HECM could provide a solution to the borrower’s financial difficulties.

Additionally, lenders can apply Extenuating Circumstances when certain items outside your control have impacted your ability to make your payments.

Income Requirements for a HECM Loan

Just like the credit requirements are somewhat nontraditional, HECM loans uses residual income instead of ratios. The good news is that the residual income component makes it possible for more borrowers to qualify for these loans.

Residual income is the amount of money left over at the end of the day, just like a budget.

Income Calculation on a HECM Loan

This hypothetical example illustrates residual income, not a quote or loan approval. Assume the income shown is eligible income after applicable deductions and there are no other required monthly expenses. Property charges are illustrative, not a Florida cost estimate.

For example, if you have $1,500 of Social Security and a $300 pension, the income could be calculated as follows:

Social Security	$1,500
Pension	$300
Total:	$1,800

As you can see, income is simply added from all allowable income sources.

Expense Calculation on a HECM Loan

Now let’s look at the total expenses. The most common expenses that we see include:

Credit card payments (revolving accounts)
Installment account payments (personal loans)
Estimated utility and maintenance expenses
Property charges (property taxes, homeowner’s insurance, flood insurance, and homeowner’s insurance payments if applicable)
Federal and state income tax
Federal Insurance Contributions Act (FICA)
Alimony and child support payments
Judgments against the borrower
Bankruptcy payment plans
Mortgage obligations for other properties owned by the borrower

Continuing with the example, let’s say that there is $250 per month in credit card payments, $300 per month in property charges, and $300 per month in installment loan obligations. The lender is looking at the monthly payments, not the total amount outstanding on these loans.

Based on this scenario, the lender would calculate the expenses as follows:

Sample Expense Calculation

Credit cards	$250
Installment loans	$300
Property charges	$300
Total Before Maintenance Expenses:	$850

Now the lender must use the square footage of the property to determine the maintenance expense. This is calculated at $0.14 per square foot.

Continuing with the example, let’s say that the home is 2,000 square feet. The lender must calculate the utility and maintenance expenses as below.

Sample HECM Utility/Maintenance Expense Calculation

Square footage of home	2,000	X 0.14 per square foot	$280.00
Monthly Utility/Maintenance Expense			$280

Residual Income Calculation on a HECM Loan

Now we bring together all the intermediate calculations from our example:

Total Income	$1,800
Total Expenses	$850
Total Utility/Maintenance Expense	$280
Total Residual Income	$670

Click to calculate your residual income based on your situation.

Now that the residual income has been calculated, the lender will determine if it meets the required residual income for the region and family size. The residual income requirements for HECM are based on:

Family size – this is represented by the number of people living within the home
Region – the state where the property is located

You can look up the residual income requirements for your state using the table below.

HECM Residual Income Requirements

Family Size	Northeast	Midwest	South	West
1	$540	$529	$529	$589
2	$906	$886	$886	$998
3	$946	$927	$927	$1,031
4	$1,066	$1,041	$1,041	$1,160

This table covers households of one to four people. Households of five or more need an advisor assessment.

Regions and States

Region	States
Northeast	CT, MA, ME, NH, NJ, NY, PA, RI, VT
Midwest	IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI
South	AL, AR, DC, DE, FL, GA, KY, LA, MD, MS, NC, OK, PR, SC, TN, TX, VA, VI, WV
West	AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WY

Even if you are not sure if you qualify, it is often best to speak with a licensed HECM lender. In many cases, a licensed lender can help you qualify by utilizing extenuating circumstances and compensating factors.

To finish our example, we can say that that the sample borrower lives alone (family size of 1) and they are located in Florida, which would place them in the South region. Then, the lender checks if the borrower meets the residual income requirement.

Final Residual Income Result

Residual income	$670
Residual income required	$529
% of requirement met	126.7%

The borrower meets approximately 126.7% of the residual income requirement ($670 ÷ $529 × 100), exceeding the benchmark by $141 per month. Meeting this benchmark does not establish overall HECM eligibility or eliminate other financial-assessment and set-aside requirements.

Note that there are certain compensating factors that can be applied even if you do not meet the residual income requirement. The HECM program is very flexible, and it is important to speak with a lender that knows the program guidelines and can help you qualify.

Counseling and documents to prepare

To be eligible for a HECM loan, it is required for all borrowers complete HECM counseling with a HUD-approved housing counseling agency.

Show full detailsHide details about counseling and documents to prepare

Counseling Requirements for a HECM Loan

The HECM counselor will discuss various items during the counseling session. Learn more about counseling →

The HECM counseling must be completed and the certificate must be signed before the HECM loan can be processed.

Sources

HUD 4000.1 Single Family Housing Handbook – PDF Download

Still have questions?
You do not have to work through the details alone. Bring your questions to a conversation with South River Mortgage.