What Homes Qualify for a Reverse Mortgage?

Question: What homes qualify for a reverse mortgage? – Joan sent via email

With a reverse mortgage, there are certain standards that must be met for a borrower to qualify. To qualify for a reverse mortgage, the borrower must be at least 62 years old, they must own the home outright (or be able to pay it off with the reverse mortgage), and there must be substantial equity in the property. There are also rules on what type of homes qualify for a reverse mortgage. Joan’s question is a common one and I will break down which homes qualify and which ones do not qualify for a reverse mortgage.

If you have other reverse mortgage questions that need answered, feel free to leave it in the comment section or leave us a message here.

 

Properties that qualify:

• Homes must meet all FHA property standards and flood requirements.
• Single family home
• 2-4 unit home with one unit occupied by the borrower
• HUD-approved condominium project
• Manufactured home that meets FHA requirements

Properties that do not qualify:

• Indian lease land
• Agricultural property
• Manufactured home (that do not meet FHA requirements)/mobile home
• Home with over 4 units

If you have questions about reverse mortgages, call 1-888-808-8486 to speak with a Senior Advisor.

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Reverse Mortgage Guide

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