Which demographic is eligible for a reverse mortgage?

Individuals aged 60 or older with equity are eligible for a reverse mortgage because this type of loan is specifically designed to help older homeowners access the equity in their homes. A reverse mortgage allows these individuals to convert part of their home equity into cash, which can be useful for living expenses, medical bills, or other financial needs during retirement. The primary requirement is that the borrower must be at least 62 years old (although some programs may offer slightly younger age thresholds), ensuring that the product serves the target demographic of seniors looking to supplement their income.

This demographic has typically built up equity in their homes, enabling them to borrow against that equity without having to make monthly mortgage payments. Instead, the loan is typically settled when the homeowner sells the house, permanently moves out, or passes away. The focus on age and home equity is essential, as it distinguishes reverse mortgages from other forms of financing that do not have these specific requirements.