Yes! You Can Get a Reverse Mortgage on a Condo

If you’re a homeowner aged 62 or older and live in a condo, you might be wondering if you qualify for a reverse mortgage. The good news is that condominiums can be eligible for these loans, allowing you to tap into your home equity and enhance your retirement lifestyle.

The primary factor determining eligibility is whether your condo complex is approved by the Federal Housing Administration (FHA):

• FHA-Approved Condos: If your condo is already FHA-approved, the reverse mortgage process is similar to a single-family home.
• Non-FHA-Approved Condos: You may still qualify through the ‘single-unit approval’ process, but it could involve additional steps and requirements.

FHA-insured reverse mortgages, known as HECMs (Home Equity Conversion Mortgages), have specific guidelines for condo approval. These include:

• Minimum Units: The condo project must have at least two dwelling units.
• Owner-Occupancy: At least 50% of the units must be owner-occupied.
• Financial Stability: The condo association must be in good financial health.
• Commercial Space Limitations: No more than 35% of the total floor area can be used for commercial purposes.
• Investor Restrictions: A single investor cannot own more than 10% of the units.

You can check your condo’s status through the FHA’s online database: https://entp.hud.gov/idapp/html/condlook.cfm

If your condo complex is not FHA-approved, a lender may still offer a reverse mortgage through the ‘single-unit approval’ process. This involves a more in-depth review of your specific condo unit and the overall financial health of the condo association.

Margaret loved her condo community but needed additional income to cover rising healthcare costs. Although her condo wasn’t initially FHA-approved, she secured a reverse mortgage through single-unit approval. Now, she enjoys her retirement with less financial worry.

Navigating condo-specific requirements for reverse mortgages can be complex. It’s essential to:

• Consult a Specialist: Find a reverse mortgage lender experienced in condo financing.
• Thorough Condo Review: Ensure your condo association meets eligibility guidelines.

Don’t let condo restrictions prevent you from exploring a reverse mortgage. With the right knowledge and support, you can achieve a more secure and enjoyable retirement.

Reach out to the experts at Reverse Mortgage Answers! Call us at (800) 420-5515 or contact us at https://www.rmanswers.com/contact/. Download our free guide at https://www.rmanswers.com/free-reverse-mortgage-guide/ or use our free calculator to discover how much you could qualify for: https://www.rmanswers.com/reverse-mortgage-calculator-2/