The FHA determines which homes qualify for reverse mortgages. Most standalone homes qualify as long as you’re sixty-two or older and use the home as a primary residence. Secondary homes or vacation homes do not apply.
Certain types of primary residence do not qualify due to the nature of their construction or surrounding property. If you live in any of the following types of residence, you may need to consider other financing options, such as home equity loans. If you’re interested in a reverse mortgage, then read on for our breakdown of what type of houses qualify!
Mobile and Manufactured Homes
With certain restrictions, it is possible to get a reverse mortgage on a mobile or manufactured home.
Condos Not Approved by the FHA
Condos not on the FHA’s approved list are not eligible for reverse mortgages. The requirements for this list are long and complicated, but there’s no need to worry about them. Simply search the FHA approved list for your condo. If your property is on the list, it qualifies for a reverse mortgage.
Multi-Tenant Buildings of More Than Four Units
If you own a multi-tenant building and live in one of the units, you qualify for a reverse mortgage, as long as the residence has no more than four units. Duplexes, triplexes, and four-plexes qualify. Multi-unit buildings of five or more units are considered commercial property and are ineligible for reverse mortgages.
If you’re unsure on whether or not your residence qualifies for a reverse mortgage, contact a licensed expert!