Quick Answer
Yes, you can get a reverse mortgage on a condo. For an FHA HECM, the condo generally must be FHA-approved, or your individual unit may qualify through FHA single-unit approval. If the condo or HOA isn't FHA-approved, a proprietary (private) reverse mortgage can sometimes still work. You must occupy the condo as your primary residence and stay current on HOA dues, property taxes, and insurance.
Can You Get a Reverse Mortgage on a Condo?
Yes. A condominium is an eligible property type for a reverse mortgage, just like a single-family house. The two most common paths are the FHA-insured HECM and a proprietary (private) reverse mortgage. The main difference from a single-family home is the approval of the condominium project itself — the lender and FHA look not just at you and your unit, but at the financial health and rules of the homeowners association (HOA) and the overall building.
FHA Condo Approval: The Key Requirement
For an FHA HECM, the condominium project typically needs to appear on the FHA-approved condo list. FHA approval reviews things like the HOA's budget and reserves, owner-occupancy levels, the share of units behind on dues, insurance coverage, and any pending litigation. Many established California condo communities are already FHA-approved. If yours is, the process from there is very similar to a single-family reverse mortgage.
Single-Unit Approval (Spot Approval) Since 2019
Since October 2019, FHA allows 'single-unit approval' — sometimes called spot approval — which can let an individual unit qualify even when the entire project isn't on the FHA-approved list. There are conditions (for example, limits on how many units in the building can be FHA-financed and minimum owner-occupancy), but this rule has opened reverse mortgages to many condo owners who previously couldn't qualify. A specialist can request single-unit approval as part of your application.
When Your Condo Isn't FHA-Approved: Proprietary Options
If your condo project can't get FHA approval and single-unit approval isn't available, you may still have options. Some proprietary (private) reverse mortgages approve condos — including certain non-warrantable condos and non-FHA-approved HOAs — that standard HECMs cannot. Terms and availability vary by lender and by the specifics of your building, so the right move is to have your exact property and HOA reviewed rather than assuming you're out of options.
HOA Dues and the Financial Assessment
Condo owners pay monthly HOA dues, and lenders include those dues in the financial assessment — the review that confirms you can reasonably keep up with property charges. As with property taxes and insurance, staying current on HOA dues is part of keeping the loan in good standing. In some cases a portion of the loan (a 'set-aside') may be reserved to help cover these ongoing costs. A reverse mortgage does not eliminate HOA dues, but by removing a monthly mortgage payment it can free up cash flow to cover them more comfortably.
How to Check and Get Started
The first step is simply verifying your condo's status — whether the project is FHA-approved, whether single-unit approval is possible, or whether a proprietary loan is the better fit. Because this depends on your specific building and HOA, it isn't something to guess at. Miguel A. Vazquez, NMLS #401212, can look up your condo and HOA and walk you through which path applies to your situation, in English or Spanish.
