What is the minimum age?

62. For a married couple, the youngest borrower must be at least 62. If one spouse is under 62, they may still be a Non-Borrowing Spouse with specific federal protections.

How much equity do I need?

There is no fixed percentage, but most Utah HECMs require roughly 50% equity or more, depending on the borrower's age and current expected interest rates.

Does the home have to be paid off?

No. Any existing mortgage is paid off at closing using HECM proceeds. The remaining funds are then available to you.

What property types qualify?

Single-family homes, FHA-approved condos, 2–4 unit properties (if owner-occupied), and certain manufactured homes that meet HUD standards.

What is the financial assessment?

Federal rules require lenders to confirm borrowers have the willingness and capacity to keep paying property charges (taxes, insurance, HOA). Credit history and residual income are reviewed.

Is HUD counseling really mandatory?

Yes. Every borrower must complete counseling with an independent HUD-approved agency before the lender can process the application.

Can I qualify if I have bad credit?

Credit is reviewed for property-charge payment history, not for a traditional debt-to-income test. Many Utah borrowers with imperfect credit still qualify.

Utah Reverse Mortgage Eligibility | Age, Equity & Counseling

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By Tres Miller · Mortgage Lender · NMLS #217768

Reviewed June 22, 2026 · 25+ years lending in Utah

The four-part eligibility test

A Utah HECM has four eligibility pillars: borrower, property, financial assessment, and counseling. All four must be satisfied. Each is described below.

1. Borrower requirements

At least one borrower 62 or older (younger spouses can be Non-Borrowing Spouses with federal occupancy protection).
U.S. citizen, permanent resident, or qualified alien.
Home is the primary residence.

2. Property requirements

Single-family detached, FHA-approved condo, owner-occupied 2–4 unit, or HUD-eligible manufactured home built after June 15, 1976.
Property must meet HUD minimum property standards. Required repairs identified at appraisal may be allowed with a repair set-aside.

3. Financial assessment

HUD's financial assessment confirms a borrower can continue to pay property taxes, homeowners insurance, HOA dues, and basic maintenance. The lender reviews property-charge payment history, credit, and residual income. If a borrower does not pass the residual-income test, a Life Expectancy Set-Aside (LESA) may be required to pre-fund future property charges.

4. HUD-approved counseling

Every prospective borrower must complete an independent counseling session with a HUD-approved agency. The counselor reviews the loan structure, costs, alternatives, and consumer protections. A counseling certificate is required to move forward.

Utah-specific notes

Utah recognizes the federal HECM program without adding state-level age or equity overlays. Property-tax abatement programs in some Utah counties (such as the circuit breaker and Veterans abatement) can interact with the financial assessment — Tres reviews how those affect your file.