Home Equity Conversion Mortgages (HECMs) are the most common type of reverse mortgage loan, issued only to homeowners who are 62 years of age or older.
Apart from age, there are other requirements necessary to obtain a reverse mortgage, the house must be your main residence, that is, where you spend most of the year
You must own the home or have a low balance on your mortgage. Owning means that you no longer have a mortgage on the property. If you have a balance on the mortgage, you should be able to pay it off when you close on the reverse mortgage. You can use your own funds or reverse mortgage money to do this.
You cannot be delinquent on any federal debt, such as income taxes or student loans. However, you can use the funds from the reverse mortgage to pay off this debt.
You must keep the property in good condition. If your home doesn’t meet the standard property requirements, the lender will tell you what repairs need to be done before you can get a reverse mortgage loan.
You should also seek advice from a HUD-approved reverse mortgage housing counseling agency to discuss your eligibility, the financial consequences of the loan, and other alternatives.