While typically a reverse mortgage is done on a single-family detached residence, several other property types may be eligible. This little known fact can allow many more senior homeowners to reap the benefits of a reverse mortgage.
The important thing to remember is that no matter what type of property, in nearly every case it must be the primary residence of the borrower(s). For example, townhomes (attached units) often qualify for FHA HECM financing. In many instances, condominiums are eligible for FHA reverse mortgage financing, provided they meet certain criteria.
Two-to-four unit properties are allowed under the FHA HECM program if they meet zoning regulations and at least one unit is occupied by the borrower(s).
Manufactured housing and modular homes can secure reverse mortgages, providing they meet the criteria set by FHA and of course, are the primary residence of the borrower(s).
Even a mobile home could possibly qualify, although the borrower must own the land (no lot leases allowed) in addition to meeting other criteria established by FHA.
On a case by case basis, some proprietary products (those where the lender sets the rules) a second home (not an investment property) may qualify, but the lender will set the parameters for that type of home.
Be sure to check with your reverse mortgage consultant during your initial conversation to assure that your property qualifies for reverse mortgage financing - most do, some don't and it's crucial to know if your property is acceptable security for reverse financing.
For more information, visit this California Reverse Mortgage Lender or www.areversemortgagelender.com or call 877-240-7020.
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