Eligible Reverse Mortgage Property Types

Mortgage and Lending with Cherry Creek Mortgage

There is often confusion about what property types qualify for a Reverse Mortgage. If you are considering a Reverse Mortgage, the first step would be to determine whether or not your property is eligible. Property types that qualify for an FHA insured Reverse Mortgage include single family residences, 1 to 4 unit homes, approved condominiums or townhomes, and double or  triple wide manufactured homes that were built after 1976 and sit permanently affixed to an FHA approved foundation.

Another very important aspect to understand when considering whether a property qualifies for a Reverse Mortgage is that it must be owner occupied. Second homes, vacations homes, and rental homes are all ineligible. The only instance in which a rental home would be suitable for a Reverse Mortgage is in the case of a multi unit home, with the owner occupying one of the units.

Why does the property type matter so much? Well, these guidelines are set by the Federal Housing Administration (FHA), which insures Home Equity Conversion Mortgage (HECM). This means that all property types must meet FHA property standards and flood requirements in order to be eligible.


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Rick Kellow

FHA & Reverse Mortgage Expert
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