We are called often with people asking if we can do a “reverse mortgage on a condo.” There is some information out there that is unclear about this process and it seems that many people are unaware that you can get a reverse mortgage on your condo. Those with condos who want to get a traditional reverse mortgage or HECM must get the complex FHA approved. This is easier than some let on. Most complexes want to be FHA approved not only so that residents can obtain a reverse but also for traditional FHA financing as it allows more potential home owners to qualify for purchases etc. Most complexes are already FHA approved so if you have a condo the best way to find out is to call us so we can check. For those not already approved the HOA can easily obtain approval and we can also point you in the right direction.
In the past we were able to do a reverse mortgage spot approval which meant we could just get the single unit approved rather than the entire complex. Spot approvals were done away with by FHA a few years back but there have long been rumors of it’s return. We will see if they actually ever bring it back. Another option for those with condos worth at least $500,000 is the jumbo Home Safe product. The Home Safe is privately insured and has more freedom to approve actual units rather than the entire complex. It is a good option for those whose HOA refuses to obtain approval for the entire complex. Home Safe has a relatively low fixed rate but in some cases may offer less cash out. The best way to see what is the best fit for your condo is to call us today toll-free at 1.800.598.6265.