Eligibility Requirements
The eligibility requirements for a HECM reverse mortgage are quite simple and do not impose any minimum or maximum limits on income:
- You, and any of your co-borrowers, must be at least 62 years old and occupy the property as your principal residence.
- Your property must be either a one- to four-unit dwelling or a unit in a condominium or planned unit development (PUD) project. Leasehold properties are eligible if they meet HUD and Fannie Mae guidelines. The property need not be debt-free for the borrower to be eligible, but the indebtedness on an existing lien must be paid off at closing. Manufactured housing may be eligible if the property meets FHA requirements. HECM loans secured by property held in an inter vivos trust, or living trust, are considered eligible if the trust and the borrowers meet HUD requirements. A WSFS Bank Reverse Mortgage Specialist can help you determine whether a particular trust agreement is eligible.
- All HECM reverse mortgage borrowers must have reverse mortgage counseling from a HUD-approved counseling agency. This session may be conducted with a power of attorney or court-appointed conservator/guardian if the borrower lacks legal competency. Counseling session will focus on the types of reverse mortgages available, the suitability, costs associated with, and other services available.