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Is your 62+ (or 55+) client a fit for a reverse mortgage? Five questions

Tom Jarboe, NMLS #210600
Checked November 3, 2026

Written for real estate agents, planners, CPAs and attorneys. Homeowner or family member? Start with the family guide: Who qualifies, and why people are denied.

The five questions

Here's how I'd ask them, and what each answer tells you.

1. "How old is the youngest person who'll be on the title?" For a HECM, the FHA-insured reverse mortgage, the youngest borrower must be 62 or older at closing.

If one spouse is younger, that spouse can't be a borrower yet, but may be able to stay in the home later as an eligible non-borrowing spouse. A younger spouse's age also lowers how much can be borrowed.

Between 55 and 61, a HECM isn't available, but some private loans, such as HomeSafe, start at 55 in California, and their rules differ. See who qualifies and the non-borrowing spouse guide.

2. "Will this be your main home, for the long run?" The home must be the borrower's principal residence: where they live most of the year. A second home or rental doesn't qualify.

The loan comes due when the last borrower dies, sells, moves out for good, or is away more than 12 months in a row because of illness. A "yes, this is where we're staying" is a good sign.

3. "What will you have from savings or the sale of your current home?" For a purchase, the buyer brings their own funds, often from selling the old home, and the reverse mortgage covers the rest.

I can't put a number on that here, because it depends on age, rates and the price of the home.

What you need to know: a buyer who's counting on the loan to cover everything may be disappointed, so it's worth talking with a reverse mortgage lender before they fall in love with a home. See HECM for Purchase for agents.

4. "Can you keep up property taxes, homeowners insurance, HOA dues and upkeep?" There's no required monthly mortgage payment, but those bills stay the borrower's, and not paying them can make the loan come due.

Before approving a HECM, the lender reviews credit history, income and expenses (HUD calls this the Financial Assessment). If it shows a concern, the lender may require a set-aside from the loan for taxes and insurance, which lowers what can be borrowed. In some cases the loan can't go forward. See the Financial Assessment.

5. "How long do you plan to stay, and how do your heirs feel about the home?" The upfront costs make more sense over a long stay. The balance grows over time as interest, mortgage insurance and fees are added, so less equity may be left for heirs.

A HECM is non-recourse: neither the borrower nor the heirs ever owe more than the home is worth, and no one has to make up a shortfall from their own savings. If the kids hope to keep the house, the family should talk it through early.

Signs it probably isn't a fit

I'll say it plainly when a reverse mortgage isn't right. These are the usual reasons:

• They may move within a few years. The FTC notes that costs can be higher if you stay in the home a short time.
• They need only a small amount. The FTC says the same about borrowing a small amount. A cheaper option may do the job. See alternatives.
• They can comfortably make a mortgage payment and aren't retired yet. A regular loan may cost less.
• Taxes, insurance and HOA dues are already hard to pay, and a set-aside wouldn't fix it.
• The home won't be their main home, or the property type, such as an unapproved condo or a manufactured home built before June 15, 1976, won't qualify (see which homes qualify).

From Tom: "If a family can afford to make the payment and they're not in a retirement situation yet, then there's no need for them to go into a reverse."

For the full pros and cons, point your client to is a reverse mortgage a good idea?

Raising it respectfully, without pressure

Older clients deserve time and plain answers. A few things help:

• Ask, don't pitch. "Have you thought about how you'd pay for the next home?" opens the door. Let them decide whether to walk through it.
• Invite family or a trusted person in, but talk to your client, not past them. The decision is theirs.
• Slow is fine. The FTC warns that some salespeople rush people, and tells consumers to stop and check with a counselor or someone they trust before signing, and to walk away if pressured. Counseling with an independent HUD-approved counselor is required before applying for a HECM.
• No add-ons. No one can require a client to buy an annuity, insurance or an investment to get a reverse mortgage. If anyone pushes one, that's a red flag.
• Watch for warning signs. If someone else seems to be steering the decision or the money, anyone in California may report suspected elder abuse. In Los Angeles County, the Elder and Dependent Adult Abuse Hotline is 1-877-477-3646, 24 hours a day. In another county, call that county's Adult Protective Services. Call 911 in an emergency.

Checklist before talking with a lender

• Ages of everyone who'll be on title (and any spouse who won't be)
• Confirmed it will be their main home
• Rough idea of funds from savings or a sale
• Property type (single-family, condo, manufactured home)
• Whether taxes, insurance and HOA dues are current
• How long they plan to stay, and whether family has been part of the talk
• Your client knows they can call me directly, and can choose any lender

Working with me

Call me at (909) 869-6588 or email [email protected]. Your client is always welcome to call me directly. I'll tell them plainly if it isn't a fit. Before applying for a HECM, they'll meet with an independent HUD-approved counselor, and in California there's a 7-day wait after counseling before a final application or any fees.

This page is education only. I don't pay or accept referral fees or anything of value for referrals, and your clients are always free to choose any lender.

Tom Jarboe, Regional Sales Manager, New American Funding, NMLS #210600, Diamond Bar.

Have a client weighing a reverse mortgage? Call or email me: (909) 869-6588. More for professionals.

Related guides

• QualifyingWho qualifies for a reverse mortgage, and why people are deniedRead →
• For real estate agentsHECM for Purchase: what a buyer's agent needs to knowRead →
• For agents and attorneysListing or settling a home after the last HECM borrower diesRead →