For most of the time reverse mortgages have been around they were not available on condos and many people still believe this to be true. But that changed in 2019.
Previously most condos could not obtain HECM Reverse Mortgage loans because they required approval of the entire building, which included multiple units. The 2019 change now only requires approval of single units. This was a huge step forward for the industry, as many seniors find condos to be comfortable and affordable as they age in place.
Here’s what former HUD Secretary Ben Carson had to say when this change was made:
“Condominiums have increasingly become a source of affordable, sustainable homeownership for many families and it’s critical that FHA be there to help them,” said HUD Secretary Ben Carson. “This is an important step to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age-in-place.
FHA deputy assistant secretary of single family housing, Gisele Roget, also clarified that the previous rules governing condo approvals shut out a lot of senior condo owners from obtaining a HECM in the past, and the new rule helped to address that.
“We recognize that many seniors live in condominiums that were unable or unwilling to go through the process of FHA’s project approval,” Roget said. “And so, by allowing borrowers to utilize the single unit approval, they will be able to age in place in condominiums that do not have the overall FHA project approval.”
Condos can now also be purchased using a Reverse Mortgage for Purchase.
If you have a condo and are interested in learning more about a reverse mortgage, contact me to find out if it could be a fit for you.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.