When applying for a traditional mortgage, you have to demonstrate sufficient income and assets -- as well as overall creditworthiness -- to qualify for a loan. Because a reverse mortgage pays out based on the equity homeonwers have already built up in their home, they don't have to worry about monthly income or total assets (other than the residence in question).

To qualify for a reverse mortgage applicants must be over 62 years old and must have paid off all or most of their mortgage (the reverse mortgage will pay off whatever is left of their original mortgage before qualified applicants receive any money, so if they have a large balance on that mortgage, a reverse mortgage won't work for them). They must also meet with a HUD-approved counseling agency before signing up. Their home can be any single-family residence, including a condominium or mobile home, as long as it's their principal residence.