Eligibility Requirements


Borrower Requirements

  • Must be 62 years of age or older (spouse can be under 62)

  • Must have considerable equity on property (the younger you are, the more equity you will need- 50% equity +/-)

  • Must occupy the property as your principal residence (at least 6 months + 1 day). Borrowers CAN own other properties

  • Must not be delinquent on any federal debt, such as income taxes

  • Must have financial resources to continue paying property tax, home insurance, HOA, and general upkeep of home

  • Must participate in phone or in-person counseling session with a HUD-approved HECM counselor (Fee associated: $100-$200). A Better Life Mortgage will provide a list of approved counselors and a code that is needed to set up an appointment.

Property Requirements

  • Primary single family home, or 2-4 units with one unit occupied by owner

  • HUD-approved condominium project (A Better Life Mortgage may have a source for a NON-approved condominium project- inquire with loan officer.

  • Individual Condominium Units that meet FHA Single Unit Approved requirements

  • Manufactured homes that meet FHA requirements

Financial Requirements

  • Income requirements are MUCH different than a regular loan because there is NO requirement to make a payment.

  • Credit history will be reviewed. Unlike regular mortgage, credit scores do not affect the interest rate. 

  • Assets when there is a purchase transaction or when a client owns other properties will be verified

  • Timely payment of real estate taxes, hazard and flood insurance premiums will be verified