You Can Do a Reverse Mortgage on A Manufactured/Mobile Home

By
Mortgage and Lending with SMP Mortgage, Inc NMLS ID #276668

I have come across a lot of questions lately regarding reverse mortgages and manufactured/mobile homes. Many people think these types of properties do not qualify.  As a mortgage broker in South Florida, I have recently done several reverse mortgages for people living in manufactured/mobile homes. Reverse mortgages can be done on manufactured/mobile homes, but there are some conditions that  apply.

Here's some information about what's needed to qualify for a reverse mortgage for these types of properties:

  • The home must have been built after 1976
  • The home must be permanently attached to a foundation 
  • an appraisal will be needed- the cost is around $460 - more than a conventional appraisal
  • a structural engineering report must be completed  cost abut $450. This must be completed to make sure the property meets HUD/FHA guidelines 
  • The land the property sits on must be owned.

As with conventional reverse mortgages, the following also applies:

  • The borrower must be at least 62
  • The property must be a primary residence
  • Any current liens on the property must be paid with the proceeds of the reverse mortgage
  • Any outstanding Federal liens must be paid
  • Title to the home is always retained by the borrower. 

Also, if you are a snowbird and live in Florida for 6 months of the year, and do not rent your property during your absence, you can still qualify for a reverse mortgage.

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Comments (7)

Aslan Realty Advisors, LLC
Fort Myers, FL
Staying a step ahead with Pride!
Property must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved.
Nov 11, 2007 02:49 AM
Scott Slocum
Florida Future Realty Inc. - Cape Coral, FL
Scott Slocum & Associates 239-222-4800, Cape Coral
Thanks for the great information... I was unaware that mobile homes were eligible for such funding
Nov 11, 2007 03:01 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Paige: Thank you. You are correct.  I did not include that info in my post since I was only referring to manufactured/mobile homes.  Those reading will appreciate the additional information that applies to other types of properties.

Scott:  Thanks for the comment,  I'm glad you found the information useful.

Nov 11, 2007 03:10 AM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

Cheryl,

Many mobile homes in Boca have 99 year leases. They qualify?

Nov 11, 2007 03:14 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Scott,

Good question. And yes, manufactured/mobile homes with 99 year leases do qualify.

Nov 12, 2007 01:38 AM
Teresa A Burrell
Burrell Closing Service Inc. - Orlando, FL
Mobile Notary Public
Doesn't the property have to be your primary residence to qualify?  What proof of residency would a "snowbird" have to posess?
Nov 12, 2007 06:31 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Teresa,

A "snowbird" would need proof of residency such as a Florida Driver's license or ID.  They will also sign an affidavit that the property is a primary residence.

Nov 13, 2007 02:02 AM