HECM Eligibility Requirements — Age, Equity, Property Type
Not every homeowner qualifies for an FHA HECM reverse mortgage. The federal government sets specific rules around age, equity, property type, and occupancy. These rules exist to protect borrowers — and to ensure the loan can actually work as advertised.
The age 62 rule
The youngest borrower on the property title must be at least 62 years old to qualify for a HECM. If two spouses own a home together and one is 65 and the other is 58, the loan cannot proceed until the younger borrower turns 62. There are no exceptions to this rule — it is set by HUD.
This rule exists because the math of a reverse mortgage requires that the loan be repaid over a certain period of time. HUD uses actuarial tables to estimate how long borrowers are expected to live in the home, which affects how much equity can be released.
Primary residence requirement
You must occupying use the home as your primary residence. This means:
- You live in the home for the majority of the year.
- It is the address where you are registered to vote, file taxes, and receive mail.
- Vacation homes, rental properties, and second homes do not qualify.
If you have a seasonal home and a primary residence, only the primary residence can be used for a HECM. If you currently rent your primary residence and own a different property outright, that property could potentially qualify once you move in and establish it as your primary residence.
Equity threshold
You must have significant equity in your home — generally 50% or more of the home's current value after subtracting all existing mortgage balances and liens. FHA does not require you to own the home outright, but the more equity you have, the more you can access through a HECM.
For example, if your home is worth $400,000 and you owe $150,000 on your existing mortgage, you have approximately $250,000 in equity — roughly 63%. That generally meets the equity threshold. If you owe $350,000 on the same home, your equity is only $50,000 (12.5%) and a HECM may not be the right tool.
The exact amount you can borrow depends on your age, the home's value, current interest rates, and your outstanding mortgage balance. The calculation is done by your lender using FHA's actuarial tables.
Eligible property types
HECMs can be used with the following property types:
- Single-family homes: The most common and straightforward use case.
- 1- to 4-unit owner-occupied properties: If you live in one unit and rent the others, you may still qualify — the property must be primarily owner-occupied.
- FHA-approved condominiums: The condominium project must be on FHA's approved list. Your lender can verify this.
- Certain manufactured homes: Single-wide or double-wide homes built after June 1976 that meet FHA standards, on a permanent foundation, and classified as real property.
Cooperatives, mobile homes (not on a permanent foundation), and investment properties are not eligible.
2026 FHA lending limit
FHA sets a maximum loan amount each year, adjusted by county. In 2026, the national floor is $1,249,125 for a single-family home. Homes valued above the lending limit cannot have the full value counted toward the HECM — the loan amount is capped at the limit.
In high-cost areas (certain counties in California, New York, Colorado, and elsewhere), the limit is higher. Your lender will use the FHA county limit chart to determine the ceiling for your specific property.
HUD counseling requirement
Federal law requires every HECM borrower to complete a free counseling session with a HUD-approved independent counselor before the loan can close. This is not a suggestion — it is a legal requirement.
The purpose of counseling is to make sure you genuinely understand how the loan works, what it costs, and what your obligations are. The counselor is independent — they work for a nonprofit or government agency, not for your lender. There is no fee for the session, and lenders are prohibited from steering you to a specific counselor.
Expect the session to last 60–90 minutes. The counselor will walk you through your options, the total costs, and alternatives you may not have considered. They will provide a certificate of completion that your lender will need to proceed.