Who is eligible for a Home Equity Conversion Mortgage (HECM)?

A Home Equity Conversion Mortgage (HECM) is a specific type of reverse mortgage that is designed for seniors. Eligibility for a HECM is primarily determined by the age of the homeowner, as it aims to provide financial assistance to older adults who may need to access the equity in their homes for various purposes, including living expenses, healthcare, and other needs. Homeowners must be at least 62 years old to qualify for a HECM. This age requirement is in place to ensure that the program supports those who are typically in retirement or nearing retirement age and may need additional financial resources.

The other options presented either specify an incorrect age requirement or include criteria that do not align with the HECM program's regulations. For instance, homeowners younger than 62 are not eligible, and the program specifically targets seniors to assist them in accessing cash from their home equity, while first-time homebuyers do not qualify because a HECM is intended for individuals who already own their homes. Additionally, while having a mortgage balance might be relevant for some other financial products, HECMs allow homeowners with or without a mortgage to access their home equity.