In October 2019 the FHA made it much easier for condo owners to get HECM Reverse Mortgages in Colorado.
Prior to 2019 most condo owners could not obtain HECM Reverse Mortgage loans because they required approval of the entire building, which included multiple units. The FHA change made in 2019 now allows for approval of single units. This is a huge step forward for the industry, as many seniors find condos and townhomes to be comfortable and affordable as they age in place.
Additionally, condominiums have increasingly become a source of affordable, sustainable housing for many retirees and families and the previous rules shut out a lot of seniors from obtaining a HECM reverse mortgage in the past.
Condos can also now be purchased using a Reverse Mortgage for Purchase.
To obtain a reverse mortgage on a condo, owners must be 62 or older and would need to start by contacting a reputable reverse mortgage lender to discuss the process and various options. The condo would then be appraised. Prior to securing the reverse mortgage the borrower(s) would be required to participate in a counseling session facilitated by a third-party where they would go over the terms and have the opportunity to answer questions. The proceeds from the reverse mortgage can be paid out in a line or credit, lump sum, monthly payments, or in the case of a reverse mortgage for purchase, the borrowers would take ownership of the new home.
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.