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Reverse Mortgage Requirements in California

A reverse mortgage lets homeowners 62 and older convert home equity into cash with no monthly mortgage payment. Here are the core requirements to qualify for a HECM in California.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

To qualify for a HECM reverse mortgage you generally must be 62 or older, live in the home as your primary residence, hold significant equity, complete HUD-approved counseling, and be able to keep up with property taxes, insurance, and upkeep.

Who and what qualifies

The most common reverse mortgage is the FHA-insured Home Equity Conversion Mortgage (HECM). Core requirements: at least one borrower is 62 or older; the home is your primary residence; you own it outright or have enough equity that the reverse mortgage can pay off any existing balance; and the property meets FHA standards. Eligible homes include single-family residences, FHA-approved condos, and owner-occupied 2–4 unit properties.

Counseling and financial assessment

Before applying you must complete a session with a HUD-approved counselor, who confirms you understand the loan. Lenders also run a financial assessment to verify you can cover ongoing property charges (taxes, insurance, HOA, maintenance). If there is concern, the lender may set aside part of the proceeds in a Life Expectancy Set-Aside (LESA) to pay those charges.

Ongoing obligations

A reverse mortgage has no monthly principal-and-interest payment, but you must continue to live in the home, pay property taxes and homeowners insurance, and maintain the property. Falling behind on these can trigger default, so budgeting for them is essential.

RequirementTypical
Age62+ (one borrower)
OccupancyPrimary residence
EquitySubstantial / owned outright
CounselingHUD-approved (required)
Property typesSFR, FHA condo, 2–4 unit owner-occ

Frequently asked questions

What is the minimum age for a reverse mortgage?

For a HECM, at least one borrower must be 62 or older. Some proprietary "jumbo" reverse mortgages start at 55, subject to lender rules.

Do I still own my home?

Yes. You keep title and ownership. The reverse mortgage is a lien, like any mortgage, repaid when the last borrower permanently leaves the home.

Do I need good credit?

There is no minimum credit score, but the financial assessment reviews your history of paying property charges. Weak history may require a set-aside (LESA).

What are the minimum requirements for a reverse mortgage?

The minimum requirements: you must be at least 62, live in the home as your primary residence, own it outright or have significant equity (roughly 50% or more), stay current on property taxes, homeowners insurance, and maintenance, and complete HUD-approved counseling. There is no monthly mortgage payment and no strict income or credit-score minimum.

How much equity do you need for a reverse mortgage?

Most reverse mortgages require roughly 50% equity or more. If you still owe on your current mortgage, the reverse mortgage must first pay off that balance, so the more equity you have, the more usable cash is left. Borrowers who own their home free and clear qualify for the most.

Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.

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