At what minimum age can a borrower apply for a reverse mortgage?

A borrower can apply for a reverse mortgage at the minimum age of 62. This requirement is set forth by the Federal Housing Administration (FHA) for Home Equity Conversion Mortgages (HECM), which are the most common type of reverse mortgage available. The age requirement is in place because reverse mortgages are designed for seniors who have accumulated home equity and wish to convert that equity into cash while continuing to live in their homes.

Eligible borrowers must be at least 62 years old to ensure that they are of a retirement age and can benefit from the financial assistance that a reverse mortgage provides. This age requirement also reflects the balance between borrower risk factors and the insurance needed to protect the lender against potential losses, considering that younger borrowers may not yet have the same level of equity or financial stability.