Reverse Mortgage Properties
Reverse mortgages can provide senior homeowners with immediate money. These loans are typically issued through the Federal Housing Authority, or FHA, and are available to homeowners age 62 and up.
Reverse loans allow a homeowner to take a loan out against the value of the home not covered by any other liens.
These mortgages do not require monthly payments until the borrower is no longer able to use the mortgaged home as his primary residence.
- Single Family Homes
The most common type of home that qualifies for a reverse mortgage is a single-family home. As long as you occupy the home as your primary residence, your single family home could qualify.
- Multi-Family Homes
Multi-family homes that contain up to 4 units, such as duplexes, triplexes, and quadruplexes, could qualify for reverse mortgage loans as long as one of the units is the main residence.
Although there are some condominiums that may not qualify for a reverse mortgage, the majority of them could qualify.
- Manufactured Homes
Although many mobile homes are not eligible, manufactured homes could qualify as long as they are approved by the U.S. Department of Housing and Urban Development (HUD) and fulfill requirements set by the FHA.
Homes that do NOT qualify are
- Second homes and vacation homes
Many borrowers wonder if it is possible to get a reverse mortgage on second homes or vacation homes. Unfortunately, the answer is no. Reverse mortgages were designed with the intent to help senior homeowners age in their principal residence. Thus, second homes and vacation homes do not qualify, as neither property is the borrower’s primary residence.
- Mobile Homes
Although some manufactured homes could qualify, mobile homes do NOT. Homes covered by reverse mortgages must be considered permanent property attached to land.
Cooperatives are apartment-type dwellings in big cities like New York City, where residents own shares of the property rather than the property itself. Co-ops are usually owned by a corporation and run by a board. However, they do not qualify under reverse mortgages guidelines. According to the FHA, the co-op structure does not meet the requirement of the loan because it is not secured by real property, since it would be secured by shares instead.
- Multi-family homes more than 4 units
Multi-family homes with more than four units do not qualify because they are considered commercial property and not residential property. Only residential properties are considered for reverse mortgages.
If you have more questions about reverse mortgages or reversr mortgage properties.. Feel free to contact us at 562-881-9811 and ask to speak to our reverse mortgage specialist, Miguel Vazquez :)
We are here to help.
Your request has been submitted. We will get back to you promptly and look forward to speaking with you!