Eligibility for a reverse mortgage is primarily based on the homeowner's age, home value, and equity. The homeowner must own the property outright or have a significant amount of equity in it. The home must also be the primary residence of the homeowner.
One of the key benefits of a reverse mortgage is that it allows homeowners to tap into their home equity without having to make monthly mortgage payments. Instead, the loan is repaid when the homeowner sells the property, moves out of the home, or passes away. This can provide valuable financial flexibility for retirees who may be looking to supplement their income, cover medical expenses, or fulfil other financial needs.