Who qualifies for a HECM in Utah — and the specific tests a lender uses to confirm it.
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Am I likely to qualify?
- Youngest borrower is at least 62Younger spouses can still be protected as Non-Borrowing Spouses.
- This home is my primary residenceSecond homes and rentals do not qualify.
- Roughly 50% or more equity in the home
- Current on property taxes, insurance, and HOA dues
- Willing to complete a HUD-approved counseling session
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.
Ready to check your specific situation?
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Educational only. Not legal, tax, or financial advice.
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